Thursday’s Top Stocks
Â
Not that they really needed
an excuse, but the bulls ‘serviced’ the bears on news from an ISM report
that reflected better-than-anticipated numbers out of the economy’s ‘service
sector’. The Spyder
(
SPY |
Quote |
Chart |
News |
PowerRating), Diamond
(
DIA |
Quote |
Chart |
News |
PowerRating), and NASDAQ
100
(
QQQ |
Quote |
Chart |
News |
PowerRating) all closed up handily to the tune of between
1.25 – 2% after the ‘news’ sent prices in our ETF friends surging higher
in the opening hour of trade. Intraday conditions took on the characteristics of
a large consolidation pattern that we affectionately call the ‘Slim Jim’. But,
don’t let the name fool you, because the other numbers in today’s trade were big
as well, as market breadth was heavily in favor of the bulls with the NYSE
registering over 3:1, and the NASDAQ showing advancers beating decliners by over
2:1 on very strong volume to close out trade on Wednesday at fresh relative
multi-month highs.
Back from the links, and ready to trade I
presume? With ‘Big Blue’ out the way, the software sector
(
SWH |
Quote |
Chart |
News |
PowerRating) was
able to flex some muscle in today’s trade, and showing why it pays to stay
prepared, and leaving the ol’ opinion at the door. What we want, and what Mr.
Market ultimately does can be two different things. The best way to keep our ego
in check and our fingers on the right buttons at our keyboard, is to have the
best possible names ready to play whatever game the market says is ‘in play’ on
that particular day. Today it was up, as investors decided to ‘wear something
soft’. If you thought that the market needed some extra consolidation work, like
yours truly, and weren’t prepared to pick up the pieces where we last left off,
in our ‘confirmed rally’, then you might have missed ‘the Big Red Boat’ in
today’s trade.
Once again, all I can say is thank goodness for
daytrading. Of course, being able to participate profitably in the here and now
requires being prepared, regardless of opinion, for whatever may happen in the
next day’s battle. We can always dream at night, but when we go in to battle
each and every day, it’s time to face the reality of what’s working on the
frontlines, and having the best possible names ready for both an offensive and
defensive battle in that day’s trade.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
22.48 |
up .03 | None | 1.5% Above | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
33.01 | down .50 | CVR 2 Buy | 7% Above | Not At Extreme |
Hottest Sectors :Â Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) and Software
(
SWH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)Â
Thursday’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 |
| ADTRAN | ( ADTN | Quote | Chart | News | PowerRating) |
52.30 | 52-Week High, closing top of range on volume | 952k | 1,975m |
| Hutchinson | ( HTCH | Quote | Chart | News | PowerRating) |
32.84 | 52-Week High, closing bottom of high level intraday consolidation on heavy volume |
562k | 1,414m |
| Computer Associates |
( CA | Quote | Chart | News | PowerRating) |
23.01 | 52-Week High, B/O of 3-Week trading range on volume |
3,690m | 3,442m |
| Microstrategy | ( MSTR | Quote | Chart | News | PowerRating) |
38.02 | Intraday last hour volume surge with new 52-Week High |
616k | 392k |
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 |
| Zimmer Holdings | ( ZMH | Quote | Chart | News | PowerRating) |
42.65 | Bottom of range close, below daily price supports on heavy volume |
1,825m | 5,754m |
| Whole Foods Markets | ( WFMI | Quote | Chart | News | PowerRating) |
52.67 | Low RS daily, closing on above average volume | 1,195m | 1,619m |
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 |
| PeopleSoft | ( PSFT | Quote | Chart | News | PowerRating) |
15.20 | Consolidation pattern closing range after angular test of daily chart lows |
9,861m | 14,508m |
class=890430920-15102001>
Short
Reversals
Closing Basis.
None Today.
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 |
| Adobe | ( ADBE | Quote | Chart | News | PowerRating) |
37.17 | 3,428m | 4,316m |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
102.65 | 7,031m | 8,890m |
| Mercury Interactive | ( MERQ | Quote | Chart | News | PowerRating) |
41.56 | 4,334m | 5,886m |
| Bank One | ( ONE | Quote | Chart | News | PowerRating) |
39.05 | 4,573m | 5,185m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| IBM | ( IBM | Quote | Chart | News | PowerRating) |
84.49 | 8,159m | 10,619m |
| Johnson & Johnson | ( JNJ | Quote | Chart | News | PowerRating) |
54.06 | 7,606m | 8,804m |
| Chubb Group | ( CB | Quote | Chart | News | PowerRating) |
60.74 | 1,584m | 2,933m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.