Monday’s Top Stocks
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The dogs of the Dow have recently turned into Diamonds
(DIA), as cyclicals have reigned surpreme during the past several sessions. Today was no exception as it was once more large capitalization, ‘old school’ stocks, such as 3M
(
MMM |
Quote |
Chart |
News |
PowerRating) and Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating) that led the way for this market proxy, as well as our other ETF friends, the Spyders
(
SPY |
Quote |
Chart |
News |
PowerRating) and the Q’s
(
QQQ |
Quote |
Chart |
News |
PowerRating). The ETFs all closed up on the session, between 1.75% and 2%, for a trend day higher in technical parlance. Music to my ears but, unfortunately volume didn’t strike the same pleasurable chord, as that statistic was well below average. Advancing issues did try to compensate for the lack of participation by edging out decliners to the tune of 1.75:1…yahoo.
‘Who will win…who will lose?’ If Mr. Barney didn’t cover during the first hour and a half of trading, he might have been one of the casualties of today’s intraday bull run. No need to worry, I’m sure making money the old fashioned way is still working quite well over on Wall Street. Today’s action was yet another technical test, as the Spyders tested for the fifth time in six sessions its 50-Day EMA (close enough for government work), before reversing out of a top secret intraday reversal pattern. Price action on the ETFs was wonderful, with decent breadth statistics, but volume was anemic as previously mentioned. Can I ‘harp’ on this any more? Yes, because once again it was another day that more issues seem to be at odds with one another. You can add Biosite
(
BSTE |
Quote |
Chart |
News |
PowerRating) to the list of high quality growth stocks that are currently under siege, and the reason why I ‘prefer’ to exercise caution in today’s market.Â
But the real thing that I ‘prefer’ is to simply daytrade the old fashioned way, with discipline and consistency. Then, by adding a touch of modern wizardry we can focus on our list of High and Low RS issues, taking the classic intraday continuation and reversal setups straight to the bank, the old fashioned way, of course.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
19.94 | down .52 | CVR 6 Sell | 6% below | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
30.04 | down 1.41 | none | 9% below | Not At Extreme |
Hottest Sectors : Computer Hardware
(
$HWI.X |
Quote |
Chart |
News |
PowerRating)
and Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating) and
Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)Â
Monday’s HELVETICA>stocks to watch:
Technical
Strength Top of Range.
Stocks are scanned from TM’s Proprietary and
Technology 10 Momentum lists on the Indicators
page, as well as being hand selected, based on the most recent technical action.
This may include some or all of the following: abnormal volume, price patterns,
as well as bullish action off of technical price supports or clearance of
technical resistance in that day’s session.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Interpore International | ( BONZ | Quote | Chart | News | PowerRating) |
15.31 | 52-week high, closing in an intraday consolidation pattern |
259k | 731k |
| PEC Solutions | ( PECS | Quote | Chart | News | PowerRating) |
20.78 | Top of range consolidation, reversing intraday off its 200-Day EMA |
412k | 300k |
| Synovis Life Technologies |
( SYNO | Quote | Chart | News | PowerRating) |
26.18 | 52-week high out of a Cup & Handle daily pattern on strong volume |
385k | 742k |
| Netease.com | ( NTES | Quote | Chart | News | PowerRating) |
42.07 | 52-week high, top of range close on above average volume |
2,206m | 2,614m |
| Insight Enterprises |
( NSIT | Quote | Chart | News | PowerRating) |
14.96 | Intraday cup and handle pattern on a daily bullish gap b/o on volume |
603k | 4,693m |
Technical Weakness Bottom of Range.
Stocks
are scanned from TM’s Implosion and
Technology
Implosion Lists on the Indicators page, as well as being
hand selected, based on the most recent technical action. This may include some
or all of the following: abnormal volume, price patterns, as well as bearish
technical action at key support, or resistance levels based on closing prices.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Artisan Components | ( ARTI | Quote | Chart | News | PowerRating) |
21.09 | Bottom of range close, continuing daily chart action from a ‘shooting star’ 50-Day EMA reversal pattern |
557k | 447k |
class=890430920-15102001>
class=890430920-15102001>Stock Reversal Setups Closing Basis.
Stocks that are setting up on a closing basis as potential long
or short reversal pattern
candidates. Candidates listed may have triggered on a closing basis, or close to
triggering ( my general rule is to list the pattern setup if it is within +/-.15
of trigger price). Patterns include basing patterns (“Slim Jims,
“1,2,3s”, Double bottoms)
consolidations, and triangle reversals. Background
technical supports in the form of Fibonacci levels, EMAs (DEMA=daily ema), RS, and former price
action are
used in the decision making process.
class=890430920-15102001>Long Reversals class=890430920-15102001>Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Kronos | ( KRON | Quote | Chart | News | PowerRating) |
51.07 | Intraday test of 50-Day EMA & prior b/o levels on daily time frame |
165k | 350k |
class=890430920-15102001>
Short
Reversals
Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
class=890430920-15102001>
Institutional
Favorites
and Institutional
Laggards.
The following stocks are selected from
the Nasdaq, S&P 500 & 600 Indices, and HOLDRs. These are normally heavily traded,
liquid issues that
are exhibiting relative strength or weakness, patterns (consolidations or
“Slim Jims”) , or last hour volume surges, indicative of follow through in the very near term.
Institutional
Favorites.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Cisco | ( CSCO | Quote | Chart | News | PowerRating) |
19.08 | 60,813m | 44,738m |
| 3M | ( MMM | Quote | Chart | News | PowerRating) |
141.40 | 2,138m | 2,640m |
| Lowes | ( LOW | Quote | Chart | News | PowerRating) |
48.23 | 5,197m | 3,534m |
| Bank One | ( ONE | Quote | Chart | News | PowerRating) |
39.98 | 4,313m | 2,653m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Quest Diagnostics | ( DGX | Quote | Chart | News | PowerRating) |
58.78 | 1,007m | 1,759m |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
35.04 | 6,873m | 6,940m |
| Forest Labs | ( FRX | Quote | Chart | News | PowerRating) |
45.52 | 3,044m | 4,663m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler