Monday’s Top Stocks
Upgrades of Intel
(
INTC |
Quote |
Chart |
News |
PowerRating)
(
HD |
Quote |
Chart |
News |
PowerRating)
Street to find an early excuse for buying off yesterday’s technical lows. An
early dismissal of General Electric’s
(
GE |
Quote |
Chart |
News |
PowerRating) earnings report also added to the
early momentum higher, although the conglomerate behemoth was not cooperating
later on in the session as the stock finished off once more at the key 200-Day
EMA. All said and done, in otherwise choppy trade the ETFs were able to hold on
to their early upside momentum to finish up between .80% and 1.05%. Volume was
well below average, typical of a summer Friday, but also due in part to a slew
of earnings reports coming out early next week. But, for those willing to play
off of the most recent pullback, enthusiasm looks to be better represented by a
2:1 advancers over decliners ratio, as numbers in that department lent a bit
more support for today’s technically driven rally.
Technical lows are in place, but with enthusiasm curbed in today’s trade,
well let’s just say that there’s no need to play hero in today’s market. The
forces of resistance are still in place after a four month rally, so I’d rather
play chicken than raging bull at this stage in the game. If the ducks start
quacking we can always participate in bullish fashion, but for now a little
sharpening of the horns seems totally appropriate. Besides, with the next batch
of scary numbers to come out, we can always trade ’em up intraday with our
disciplined style of daytrading, and come away from it all with no worries of
what tomorrow may bring.
It might have been lackluster trade for those thinking of surf and sand, but
for those who dare to prepare it was just another day of riding the market’s own
waves. Sometimes we may paddle out a bit more cautiously, but when the setup
triggers, we’re more than ready because we’ve already gotten ourselves out there
in the right position ahead of time. By executing the classic reversal and
continuation patterns on our list of High and Low RS issues as they start to
roll in, we know that by the end of the session, we’ll be more than rewarded for
waiting out the chop as the waves in between make it all worthwhile each and
every day.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
|
( $VIX.X | Quote | Chart | News | PowerRating) |
20.72 | down .81 | none | 3% below | Not At Extreme |
|
( $VXN.X | Quote | Chart | News | PowerRating) |
32.80 | down .86 | none | 2% above | Not At Extreme |
Hottest Sectors: Retail
Weakest Sectors: Disk Drives (DDX) and
Homebuilders (HGX)
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 | Today’s Volume |
| United Online | ( UNTD | Quote | Chart | News | PowerRating) |
28.93 | Top of range close after four session pullback from highs on increasing volume |
1,388m | 876m |
| Integrated Devices | ( IDTI | Quote | Chart | News | PowerRating) |
12.71 | Top of range close on volume increase, within daily chart cup and handle |
2,260m | 3,126m |
| Doral | ( DRL | Quote | Chart | News | PowerRating) |
47.85 | Closing at daily chart cup and handle triggers on volume (earnings day) |
405k | 997k |
| Avid Technology | ( AVID | Quote | Chart | News | PowerRating) |
41.14 | Top of range consolidation near trading range b/o levels | 701k | 523k |
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 | Today’s Volume |
| Altria | ( MO | Quote | Chart | News | PowerRating) |
41.85 | 1,2,3 Bottom off of 50-Day EMA | 10,853m | 14,546M |
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 |
| Lowes | ( LOW | Quote | Chart | News | PowerRating) |
46.87 | 5,253m | 7,313m |
| Gilead Sciences | ( GILD | Quote | Chart | News | PowerRating) |
59.28 | 3,867m | 2,155m |
| Citigroup | ( C | Quote | Chart | News | PowerRating) |
46.15 | 13,654m | 11,778m |
| Hewlett Packard | ( HQP | Quote | Chart | News | PowerRating) |
22.86 | 13,322m | 15,125m |
Institutional Laggards
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Intuit | ( INTU | Quote | Chart | News | PowerRating) |
43.30 | 3,751m | 1,898m |
| Cigna | ( CI | Quote | Chart | News | PowerRating) |
44.49 | 1,361m | 3,827m |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler