Monday’s Top Stocks
Seriously folks I’m not quite sure what happened–but I believe it had something
to do with Uncle Al and Wall Street’s deciphering of what’s in store for our
historically low interest-rate policy. Personally, I have a tendency to turn
off the volume, although in this particular instance, with his notorious mumbling
and innuendos–it probably wouldn’t really matter much. Well, apparently some
traders broke the code, as a sizable short-covering rally ensued–but in the
end, both the S&P 500 and Nasdaq Composite finished slightly lower on the
session, down .26% to .39% on lighter, below-average trade, and giving the Nasdaq
Composite its fifth straight week of lower prices.
With some testing of technical supports at session lows in both the Nasdaq
and from the albatross of tech land, namely the semiconductor sector (SMH),
this cautious bull feels a little better heading into the weekend. Although,
I’m not yet convinced that it’s time to don the horns. I have to say, it’s the
S&P 500 chart, especially the weekly perspective, that gives me a reason
for not sniffing aggressively for fresh opportunities. That and the fact that
now we have a situation where the majority of our leading growth stock issues
remain fairly well-entrenched in their respective bases. As I mentioned in another
report, that’s a good thing–as long as those basing patterns can continue to
hold. The bad news, for some at least, is that this probably means being on
the sidelines for a little while. Not that there’s anything wrong with that–but
speaking personally, I’d rather just keep to the disciplined, consistent daytrading
tactics, and let others worry about where the bull is at each and every day.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
128 | down .68 | cvr 5 buy | 3% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
24.20 | down .04 | na | 0% | not at extreme |
Hottest Sectors : Retail
(
RTH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating)
Monday’s 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 000’s | Today’s Volume |
| Bradley Pharmaceutical | ( BDY | Quote | Chart | News | PowerRating) |
24.20 | Top of range consolidation on increased, above-average(IAA) volume, thrust bar thru daily chart resistance levels |
208 | 1,070 |
| Pacific Internet | ( PCNTF | Quote | Chart | News | PowerRating) |
10.19 | Top of range consolidation on IAA volume, in hammer test of daily chart consolidation supports |
208 | 352 |
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 000’s | Today’s Volume |
| Magna | ( MGA | Quote | Chart | News | PowerRating) |
80 | Bottom of range close on engulfing bearish bar | 216 | 236 |
| Sandisk | ( SNDK | Quote | Chart | News | PowerRating) |
25.14 | Bottom of range consolidation on Low RS issue, within daily consolidation pattern |
6,600 | 6,341 |
| Synovis | ( SYNO | Quote | Chart | News | PowerRating) |
14.96 | Bottom of range close, breakdown of daily supports | 245 | 256 |
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.
Long Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| NA | NA | NA | NA | NA | NA |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| NA | NA | NA | NA | NA | NA |
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 000’s | Today’s Volume |
| Intel | ( INTC | Quote | Chart | News | PowerRating) |
30 | 52,303 | 69,691 |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
69.27 | 7,628 | 6,181 |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
59.47 | 8,914 | 8,530 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| General Motors | ( GM | Quote | Chart | News | PowerRating) |
48.51 | 5,807 | 6,032 |
| Schlumberger | ( SLB | Quote | Chart | News | PowerRating) |
63.11 | 3,683 | 2,923 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler