Thursday’s Top Stocks
Although two of our three market proxies finished in the green today–it just
wasn’t as easy as it used to be, sometime not so long ago. With the Dow
finishing essentially flat on the day, and only a fractional gain for the
S&P500, leadership for the second day in a row was given to investors courtesy
of the Naz–as the tech and growth-laden index finished up nearly 1%,
establishing fresh highs in the process. As mentioned though–it wasn’t easy, as
a whole lot of recent leaders did the ‘chop chop’ thing, and so did the major
averages–for the bulk of the trading day. With heavy volume once again coming
into the market place, we’d normally be tickled pink that so many enthusiastic
institutional type investors seem to want in–but so late in the game, with nary
a pullback– you won’t be hearing a great big ‘yahoo’ from this ‘cautious bull’
as the stakes are getting a wee bit too high to want to participate in this pot.
One can only wonder what a day or two of real profit-taking might look like in
the not too distant future, I’m sure–I think I am?
Another day of peculiar, crazy, or should I say schizophrenic price behavior?
I’m not sure, but it sure does feel like a real tug-o-war out there as two of
the three indices continued their runs, while the other one, or all three for
that matter–can’t even go down to a proper daily chart moving average. ‘Oh,
Baby!!! Nasdaq 5000–here we come!!!’ I’d love to see it, and I can run with the
pom-poms, usually with the best of them–but something about price extension,
everyone wanting in real badly now that we’ve been going higher for ten months,
and more recently, the last few weeks without even a 2% pullback….scary, in my
humble opinion. All that I can preach for those that are in, is keep using your
‘common cents’, and keep it ‘very real’ and in your own pocket. Hmm… actually,
the one other thing that I can preach is the one thing that got us this far in
the first place–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) |
14.87 | down .47 | none | 9% below | not at extreme |
VXN ( $VXN | Quote | Chart | News | PowerRating) |
21.89 | down .87 | none | 8% below | not at extreme |
Hottest Sectors : Disc Drives (DDX) and Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Regional Banks
(
RKH |
Quote |
Chart |
News |
PowerRating) and Internet
(
HHH |
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 |
SCO Group | ( SCOX | Quote | Chart | News | PowerRating) |
18 | Inside day doji w/increased volume, setting up within a daily chart handle pattern |
321 | 223 |
Multimedia Games | ( MGAM | Quote | Chart | News | PowerRating) |
44.31 | Top of range consolidation on increased, relative volume handle b/o on daily |
575 | 502 |
Marvell Technologies | ( MRVL | Quote | Chart | News | PowerRating) |
41.45 | Top of range consolidation on continuation day thru MA and price resistance on increased, above average volume |
3,011 | 3,462 |
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 |
Pacificare | ( PHS | Quote | Chart | News | PowerRating) |
63.83 | Daily doji bar, second consolidation day between 20 and 50-day MAs |
819 | 645 |
Cal-Maine | ( CALM | Quote | Chart | News | PowerRating) |
32.35 | Bottom of range close on test of 20-day ema supports | 397 | 572 |
Countrywide Fncl. | ( CFC | Quote | Chart | News | PowerRating) |
73 | Bottom of range consolidation on above average volume, testing daily double bottom |
1,771 | 2,239 |
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 |
Talx Corp. | ( TALX | Quote | Chart | News | PowerRating) |
21.92 | Hammer pattern establishing daily double bottom on above average volume |
193 | 346 |
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 |
Intel | ( INTC | Quote | Chart | News | PowerRating) |
33.99 | 49,776 | 63,506 |
JP Morgan | ( JPM | Quote | Chart | News | PowerRating) |
38.02 | 7,526 | 14,268 |
Cisco | ( CSCO | Quote | Chart | News | PowerRating) |
25.56 | 43,570 | 48,680 |
Institutional Laggards.
Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
51.70 | 3,929 | 3,199 |
Paychex | ( PAYX | Quote | Chart | News | PowerRating) |
35 | 2,334 | 3,823 |
Best of luck to everyone. Please use protective stops on all trades.