Thursday’s Top Stocks
‘Oh No Mr. Bill!!!’ Investors apparently decided today was a fine day for more
‘profit-taking,’ as both the Nasdaq Composite and S&P 500 swooned lower–off
approximately 1.55% each. Apparently there was no sheriff to the rescue of raging
bulls, as volume swelled on increased above-average trade–in a collective attempt
to flee town before the villainous bear tries to take a real swipe at those
market-weighted portfolios. Seriously folks, this cautious bull would love
to know how they still take profits during so called institutional distribution.
No yahoo for longs, just plain ol’ yahoos’.
‘No respect I tell ya.’ I call for the market to bottom, based on extreme TRIN
readings and some solid-looking reversal evidence in both the Nasdaq and semiconductors–and
I end up using protective stops instead. The end-of-day action turned so ugly,
in fact, that one could label it a Follow-Thru-Day or FTD. Unfortunately for
Mr. Bill, this one marks another pesky day of smart money distribution. As Homer
Simpson would say, ‘Doh!!’ A tiny, tiny ouch for this cautious bull, but not
even close to fatal as trade management keeps this little guy still searching
for the ever-elusive bottom. After a second session of lower prices, further
into technical supports, a still very high TRIN reading, and now volatility
indices coming to life–I just can’t help myself from trying to look when everyone
else says the glass is now half empty. Well, hopefully I don’t have to keep
on searching too long, but if I do, I’ll just continue to stick with disciplined,
consistent daytrading tactics until all the bull has steered clear of the market.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
18.79 | up 2.42 | cvr 3 buy | 20% above | at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.58 | up .88 | cvn 3 buy | 10% above | at extreme |
Hottest Sectors : NA
Weakest Sectors : Oil Services
(
OIH |
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 |
| Serologicals | ( SERO | Quote | Chart | News | PowerRating) |
19.99 | High volume break out of daily chart weekly base, closing upper range |
481 | 2,539 |
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 |
| Avaya | ( AV | Quote | Chart | News | PowerRating) |
15.89 | Inside consolidation day below 50-Day MA zone | 5,876 | 4.989 |
| MGIC Investment | ( MTG | Quote | Chart | News | PowerRating) |
63.05 | Bottom of range consolidation near key daily chart supports | 925 | 578 |
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 |
| Semiconductor HOLDRs | ( SMH | Quote | Chart | News | PowerRating) |
39.03 | 60-minute chart extended 123 lower low, or double bottom,slightly above 38 – 38.70 technical support zone |
13,168 | 23,827 |
| eResearch | ( ERES | Quote | Chart | News | PowerRating) |
30.02 | Confirmed 3 point low in high level daily chart basing pattern |
1,192 | 1,408 |
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 |
| Juniper | ( JNPR | Quote | Chart | News | PowerRating) |
24.28 | 15,703 | 16,121 |
| Oracle | ( ORCL | Quote | Chart | News | PowerRating) |
12.41 | 41,209 | 73,250 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Caterpillar | ( CAT | Quote | Chart | News | PowerRating) |
73.51 | 2,548 | 4,724 |
| Staples | ( SPLS | Quote | Chart | News | PowerRating) |
25.65 | 3,224 | 4,842 |
| General Motors | ( GM | Quote | Chart | News | PowerRating) |
46.08 | 6,166 | 6,822 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler