Tuesday’s Top Stocks
With the Dow Jones Industrials or Diamonds (DIA) carving their way thru key
psychological support at 10,000, and the recent whipping boy of the equity markets,
the Smash (SMH) or semiconductor sector glittering for a second session–this
cautious bull doesn’t mind looking for reversal long opportunities. On the day,
the S&P 500 and Nasdaq Composite both finished down slightly more than 1%
on stronger, above-average trade.
Scary huh? Not really–with lower low versions of the double bottom pattern
in place, it’s time to play aggressively. I don’t advocate throwing caution
completely into the wind, as stops are never too far removed from reality–but
when I see the frown lines on CNBC anchors growing more visible, the talking
heads getting more bearish, and I’m scared as heck to touch a stock that has
just been knocked in half–I know how this cautious bull will play the game
over the short-term.
They certainly aren’t telling you to buy down here, and that’s just icing on
the cake, in my most humble opinion. I don’t expect a strong leg up, but with
the downside being well oversold into key technical support zones–the high-probability
move is for some upside before the intermediate downtrend can continue.
The SMH, should it actually move aggressively higher, would actually be first
on my list of potential shorts as a resistance zone between 38.20 – 39.50 should
be key for short entries in the direction of the larger downtrend. Extreme Volatility
readings and ‘stunted’ growth issues both confirm my notion that fear is in
the air and the next short-term move will be into resistance levels on the daily
charts. We’ll just have to wait and see what tomorrow brings in–of course the
one thing we already know for sure, it’ll be a better day regardless, if we
stick with our 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) |
19.74 | up .67 | cvr 3,6 buy | 13% above | at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
27.78 | up 2.28 | cvn 3 buy | 11% above | at extreme |
Hottest Sectors : Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
Tuesday’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) |
27.60 | Double bottom pattern on 15-minute chart against daily zone supports |
981 | 742 |
| Sierra Wireless | ( SWIR | Quote | Chart | News | PowerRating) |
21.69 | Double bottom on daily, against zone supports | 1,556 | 1,679 |
| Mobile Telesys | ( MBT | Quote | Chart | News | PowerRating) |
102.47 | Double bottom on daily against Fibonacci support level | 380 | 342 |
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 |
| Autozone | ( AZO | Quote | Chart | News | PowerRating) |
83.51 | Inside day after daily gap fill | 1,067 | 1,284 |
^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 |
| Dell | ( DELL | Quote | Chart | News | PowerRating) |
36.02 | 16,931 | 19,200 |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
52.87 | 4,886 | 8,134 |
| Amazon | ( AMZN | Quote | Chart | News | PowerRating) |
41.26 | 7,381 | 10,155 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Juniper Networks | ( JNPR | Quote | Chart | News | PowerRating) |
22.25 | 15,425 | 9,931 |
| Genentech | ( DNA | Quote | Chart | News | PowerRating) |
115.90 | 2,886 | 3,587 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler