Thursday’s Top Stocks
It looked like a classic example of ‘selling the news’–and it was, at least
on an intraday basis. Some fresh earnings reports from companies such as National
Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating) delighted investors just hankering to have a reason
to put fresh money to work after a one-day pullback from 52-week highs. The
latest news prompted many individual issues like NSM to gap higher on the initial
enthusiasm, only to ‘reverse hard’ out of the intraday ‘gap and crap.’ Well,
all said and done, after a second reversal back to the upside maybe, just like
in Vegas, ‘everyone will leave the table a winner’… Personally speaking, I
wouldn’t bet the ranch on that one. Nonetheless, with a mixed fractional performance
centered on the unchanged mark in both the S&P and Nasdaq cash indices,
the bulls did quite the job in ‘mooving’ the market off its lows of the session.
Volume came in slightly lower in both cash indices, while the advancers vs.
decliners ratio came in at a very flat 1:1, to further confuse what time of
year it really is.
I know, according to some trading dude’s almanac, Novemeber is typically
the start to a seasonally strong few months in the marketplace. That’s great and all, but it doesn’t do a darn thing
for trading purposes, in my humble opinion. Something about one-day pullbacks,
historical low levels of volatility–it’s probably the imagination of a madman,
but I feel like it’s just a little too good to be true, without having to pay
the piper. As I’ve said, there’s no problem with maintaining some longs within
the market’s ‘confirmed rally’, but personally speaking, I prefer to be testing
longs in the market within the ebbs or pullbacks of the market’s ever-present
cycle. That means buying the high-probability plays on successful tests of supports.
As of yesterday, that was eight days ago. All I really know is this; the more
I’m wrong, the more convinced I am that I’ve made the right decision to continue
focusing on the high-probability, consistent tactics of intraday trading.
Bulls and bears, to the delight of many daytraders, had the opportunity to
make money in today’s trade. It wasn’t perfect, and it never will be, but through
the proper use of money management, and then taking the trades that ‘you see’
as having definable edge consistently–there’s a good possibility that today
worked out for you. If it didn’t, tomorrow is another day in which your edge
might present itself, and who knows–maybe this lil’ guy might crying more ‘boo-hoo’
instead of ‘moo’ as he’s taken out to pasture.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
16.89 | up .34 | none | 3% below | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.18 | down .51 | none | 4% below | Not At Extreme |
Hottest Sectors : Homebuilders (HGX) and Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Telecom
(
TTH |
Quote |
Chart |
News |
PowerRating)
Thursday’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 |
| Rofin-Sinar | ( RSTI | Quote | Chart | News | PowerRating) |
26.61 | wide range thrust bar on above average volume, within weekly high level basing pattern |
210 | 214 |
| Websense | ( WBSN | Quote | Chart | News | PowerRating) |
24.93 | mid level consolidation on above average volume, w/session highs testing daily chart pattern b/o levels |
396 | 595 |
| Wireless Facilities | ( WFII | Quote | Chart | News | PowerRating) |
18.24 | second inside day after daily chart b/o, forming extended intraday high level consolidation pattern |
755 | 1,084 |
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 |
| j2 Global | ( JCOM | Quote | Chart | News | PowerRating) |
29.96 | Bottom of range consolidation on daily trend resumption |
1,716 | 1,640 |
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 |
| Merck | ( MRK | Quote | Chart | News | PowerRating) |
43.40 | Retest of Oct. 02′ and 78% Fibonacci support levels on an intraday 123 pattern |
7,278 | 9,748 |
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 |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
58.43 | 4,469 | 4,608 |
| Veritas | ( VRTS | Quote | Chart | News | PowerRating) |
38.36 | 6,240 | 7,043 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
26.10 | 56,086 | 61,511 |
| Target | ( TGT | Quote | Chart | News | PowerRating) |
38.84 | 3,727 | 3,164 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler