Thursday’s Top Stocks
Hmm, I guess you could call it the ‘double-double’ bottom, but I’ll opt for
calling it the ‘home-run hammer.’ With the broader averages finishing fractionally
mixed between a positive .16% to a slight loss of .29%, you might be thinking
it was a ho-hum type of day ahead of ‘more’, highly anticipated economic numbers
being released tomorrow morning. ‘Oh Yahoo!!’–as thankfully, at least from
the perspective of the daytrader, you’d be dead wrong. Not that I was expecting
today to happen, but our index hammer finishes on increased, above-average trade
did lead to some of the best intraday range trading that this cautious bull
has seen in quite some time, and that’s the only bottom line that I really care
about.
Who knew ahead of time? Not me, but I’m reminded of a quote from a book on
the workings of Zen and poker that says something about who knows what will
happen tonight, in the morning prior. Personally, I feel perfectly fine
accepting those words, as long as there are ample high-probability set ups the
next day. Yesterday I stressed looking at the semiconductors (SMH) for potential
shorts, should the market gods be so kind as to deliver the sector proxy into
proper resistance levels where risk and reward could be calculated. Guess what,
it didn’t happen–and my focus was immediately turned towards opportunities that
made sense in the ‘present’ of the morning.
In this little corner of the trading universe, high-probability intraday
trades took the proverbial cake as far as delivering some of the strongest risk
versus reward setups that I’ve seen in a long time. With the intraday range,
there were early morning shorts in Yahoo and Qualcomm before some absolutely
beautiful reversal longs took shape on both the intraday and daily charts. The
reversals, on classic technical tests, formed an abundance of double bottom
patterns–including both the SMH and SPY. So many classics in fact, that some
might even go so far as to call it ‘too easy.’ Not this cautious bull mind you,
but it was darned good stuff–almost too good if you get my drift. After a day
like today, all we can do is say thanks, hope for more of the same, and then go
back to the drawing board the next morning with the same stuff that we bring in
with us each and every day–namely disciplined, consistent daytrading tactics.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
18.86 | up .37 | cvr 5,6 buy | 6% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
27.68 | down .08 | cvn 1,5,6 buy | 6% above | not at extreme |
Hottest Sectors : Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating)
Thursday’s stocks to watch:
Longs.
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 Assesment | Average Volume 000’s | Today’s Volume |
| NVE Corp | ( NVEC | Quote | Chart | News | PowerRating) |
29.83 | Engulfing hammer bar on increased trade | 959 | 925 |
| TASER | ( TASR | Quote | Chart | News | PowerRating) |
28.20 | Top of range close on increased, above-average trade reversal bar off technical supports |
10,500 | 14,660 |
| Martek Biosciences | ( MATK | Quote | Chart | News | PowerRating) |
70.78 | Top of range consolidation on increased, above-average volume handle breakout |
619 | 1,076 |
Technical Weakness.
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 Assesment | Average Volume 000’s | Today’s Volume |
| Halliburton | ( HAL | Quote | Chart | News | PowerRating) |
28.96 | Reversal bar after pullback from lows on technical test of overhead resistance |
4,209 | 4,012 |
| Forest Labs | ( FRX | Quote | Chart | News | PowerRating) |
63.09 | Bottom of range close on above average volume, testing daily supports |
1,979 | 2,035 |
^next^
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 |
| S&P500 | ( SPY | Quote | Chart | News | PowerRating) |
110.45 | 44,832 | 90,827 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Altria | ( MO | Quote | Chart | News | PowerRating) |
49.80 | 5,583 | 30,626 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler