Tuesday’s Top Stocks
Three months into our
“confirmed rally,” and CNBC confirmed that we are in a “bull market.”
On at least two occasions, the smiling faces on our favorite entertainment
station made notice of some 20% figure from the lows that’s supposed to make
Johnny Come Lately feel a little bit better about the past two sessions’ price
action.
The volume was decidedly lighter in Monday’s trade, but prices in our ETF friends, the Spyders
(
SPY |
Quote |
Chart |
News |
PowerRating),
Nasdaq100
(
QQQ |
Quote |
Chart |
News |
PowerRating), and the Diamonds
(
DIA |
Quote |
Chart |
News |
PowerRating) all
felt decidedly heavy on reduced guidance numbers out of Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating), as
well as another unwelcome visitor that has unfortunately been an all-too-familiar
face during the past couple of years, Mr. Accounting Irregularities. This time
around, Freddie Mac
(
FRE |
Quote |
Chart |
News |
PowerRating) took center stage, but lent a helping hand in our
favorite cast members bowing out in today’s act. The index proxies finished down
between .75 and 1.35% on lighter but stronger-than-average volume, with market
breadth indicating investors favoring the offer side as decliners beat advancing
issues by approximately 2:1.
The branch snapped today as the ETFs continued a
telltale reversal day from Friday’s high volume, “shooting star” action. With
two days of “profit taking,” the market is quickly approaching
technical supports from what had been an overbought condition. If you look at
many of our recent high flyers, you might be amazed at how quickly the bulls
pulled up camp as the bear suddenly reawakens from his siesta. But, that’s OK
by me, because the pickin’s up there were looking a little bit meager to
really satisfy anything more than a nibble or a tiny snack. Within our “confirmed
rally,” the ebbs and flows of the marketplace are what give the bull a chance to
rest and refuel at lower levels before heading once more into higher
ground.
For us daytraders though, we’ll
continue to feed off the markets just fine, regardless of whether it’s a
“confirmed bull market” or not, by listening to our list of High and Low RS
stocks. By listening to these stocks, and then only executing when something is
really being said, we’ll be able to stay tuned into the markets, and not the
talking head on the TV.
Volatility Readings:
| Volatility Index |
Close |
Net Change |
Signals/Direction |
% Above/Below 10 Day Moving Average |
Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
23.71 |
up .28 | CVR 1Buy | 6% above | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
37.43 | up 1.32 | CVR 1,3 Buy | 13% Above | Not At Extreme |
Hottest Sectors: Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors: Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating) and Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating)
Tuesday’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 |
| TALX Corp. | ( TALX | Quote | Chart | News | PowerRating) |
19.67 | 52-Week High with consolidation at highs on volume |
136k | 546k |
| Performance Food Group |
( PFGC | Quote | Chart | News | PowerRating) |
36.78 |
Top of Range close, at YTD Highs on volume |
533k |
550k |
| Verint Systems |
( VRNT | Quote | Chart | News | PowerRating) |
23.51 |
Top of Range pull back intraday, on a daily reversal bar, with high volume confirmation |
195k |
968k |
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 |
| Cigna | ( CI | Quote | Chart | News | PowerRating) |
50.34 | Consolidation close near lows on Low RS stock, below price pivots and 50-Day EMA |
1,188m | 1,583m |
| Affiliated Computer | ( ACS | Quote | Chart | News | PowerRating) |
46.63 | Consolidation near lows, below 50 and 200-Day EMA |
2,261m | 1,817m |
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 |
| Jacobs Engineering | ( JEC | Quote | Chart | News | PowerRating) |
37.61 | 200-Day EMA test, closing in consolidation pattern on technical supports |
456k | 444k |
| Zebra Technologies | ( ZBRA | Quote | Chart | News | PowerRating) |
70.60 | Consolidation first range reversal off 1,2,3 intraday bottom, finding support off 20-Day EMA and prior price pivots |
366k | 242k |
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 |
| IBM | ( IBM | Quote | Chart | News | PowerRating) |
82 | 8,412m | 9,633m |
| Dell | ( DELL | Quote | Chart | News | PowerRating) |
31.50 | 20,711m | 13,948m |
| Schlumberger | ( SLB | Quote | Chart | News | PowerRating) |
47.64 | 3,296m | 2,710m |
Institutional
Laggards.
| Name |
Symbol |
Price |
Average Volume |
Today’s Volume |
| Northrop Grumman | ( NOC | Quote | Chart | News | PowerRating) |
83.50 | 1,420m | 1,788m |
| Freddie Mac | ( FRE | Quote | Chart | News | PowerRating) |
50.26 | 3,420m | 60,984m |
Best of luck to everyone. Please use
protective stops on all trades.