Tuesday’s Top Stocks
Not exactly a call to arms by the Generals in today’s trade. It looks as though
‘the resistance’, i.e., Nasdaq 2000 has proved a bit too much within the ‘confirmed
rally’ as our ETF friends and their cash brethren were seen retrenching for
much of the session, before an afternoon retreat ended the day’s game with losses
between .30% to 1.17%. With lackluster, below-average-volume statistics, it
looks as though further supplies are still being sought closer to base camp,
rather than in the depths of ‘the resistance.’ Not exactly a reason to salute
the market’s Generals, but most of the troops will be looking to salute our
real heroes in tomorrow’s observance of Veteran’s Day.
Today, and probably tomorrow morning’s early action is giving bullish participants
their first technical test in the form of the 20-day EMA. Our ETF friends all
came within ‘spitting distance’ of this benchmark in today’s trade, before rallying
ever so slightly into the close and forcing some shorts to cover, after a day
of dominating trade. At the moment, the 20-day test translates into percentage
pullbacks of somewhere between 1% to 3%. Very orderly, still very much part
of the market’s ‘confirmed rally’, but in my book, probably not done ‘sticking
it to the bull.’ I’ve been wrong before, and I’ll surely be wrong again, but
the en vogue ‘buy the dip’ or be a dip mentality probably needs a test of its
own before we see another running of the bulls through Nasdaq 2000, so you know
what I’ll continue to focus on just in case this ol’ guy is labeled the dip–and
that is consistent, disciplined daytrading.
Most of the moves felt lethargic as traders woke up to the first day of the
trading week–but it did happen again. Our brand of disciplined, consistent
daytrading came looking pretty good, in spite of a bad-looking market. For those
that took the classic continuation and reversal opportunities from their list
of High and Low RS issues, there was good reason to be giving yet another salute
to all of the troops–not the ones that we’ll cheer tomorrow, but those on the
front lines of Wall Street, as once again they made it a battle worth fighting
for.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
17.67 | up .74 | cvr 1 buy | 6% above | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
26.50 | up 1.30 | none | 5% above | Not At Extreme |
Hottest Sectors : Telecomm
(
TTH |
Quote |
Chart |
News |
PowerRating) and Utilities
(
UTH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating) and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Tuesday’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 |
| Enterra Energy | ( EENC | Quote | Chart | News | PowerRating) |
21.20 | Top of range consolidation on 52-week triangle pattern b/o w/ confirming volume |
202 | 1,674 |
| Bradley Pharmaceuticals | ( BDY | Quote | Chart | News | PowerRating) |
31.15 | 30-Minute extended Cup and handle w/in weekly high level base |
396 | 119 |
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 |
| KB Homes | [KBH|:KBH] | 66.37 | low of day close on heavy volume, breaking trendline and EMA supports |
1,022 | 1,357 |
| Digital River | ( DRIV | Quote | Chart | News | PowerRating) |
26.12 | Bottom of range consolidation on relative volume increase, below key EMAs within established downtrend |
745 | 458 |
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 |
| Silicon Labs | ( SLAB | Quote | Chart | News | PowerRating) |
51.15 | Bottom of range consolidation on break of price and EMA supports, w/ confirming above-average volume |
1,121 | 1,363 |
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 |
| NA | NA | NA | NA | NA |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Sina | ( SINA | Quote | Chart | News | PowerRating) |
37.59 | 10,575 | 5,528 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
41.24 | 12,781 | 8,507 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler