Tuesday’s Top Stocks
It’s definitely a conundrum if you decide to think about the moral implications–but
for traders, geopolitical news such as terrorist threats are a time to act,
especially after more than two weeks of choppy trade. Today’s news of terrorist
threats to Japan had some traders (hmm, I doubt it) deciding to take profits
after quite a few days (as mentioned) of opportunity, at much better levels.
For the session, the three amigos finished down between .40% to 1%, reversing
technical lows handily. Trade was on par over on the Naz (OK, so it was a million
shares lighter), while the figures on the S&P500 cash index were definitely
lighter and below average–but with a break of the ol’ trading range, for reversal
traders and those who like to say, ‘bull’–today’s trading was definitely well
above average.
Hmm, which camp is going to send out the hate mail this week??–probably the
same few that told me to ‘lay off’ my cautious stance as I stressed a need for
some testing below the range lows. Today’s action was just what the doctor ordered
as intraday tests of technical supports such as the 50-day EMA and multiple
Fibonacci supports were there for the taking out of many excellent intraday
consolidations–too many in fact, as so often happens. Oh well, you can’t take
’em all, but with your consistent, disciplined brand of daytrading, there’s
no doubt that today was the type of day that makes it all so worthwhile–how’s
it go, ‘Monday, Monday, So Good To Me?’ You better believe it.
Seriously, it was perfect–while every trade did not work, and some that looked
to trigger never did, it was still the type of high-probability day laden with
edge that intraday traders love to see. Better yet, it’s the type of day in
which we love to participate as it was a ‘play by the numbers’ kind of day–and
if you know how to count to three, it really was as easy as 1,2,3. Thank Kevin
H. for that, but another better yet–thank yourself for being ready.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
18.93 | up 1.30 | NA | 7% above | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
28.10 | up 1.94 | none | 7% above | Not At Extreme |
Hottest Sectors : Biotechs
(
BBH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Gold/Silver (XAU) 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 |
| Quest Diagnostics | ( DGX | Quote | Chart | News | PowerRating) |
71.33 | engulfing daily bar on increased, above average volume to fresh b/o levels out of cup and handle setup |
872 | 1003 |
| Garmin | ( GRMN | Quote | Chart | News | PowerRating) |
51.72 | engulfing bar on strong, increased trade, closing top of range |
456 | 830 |
| Kyphon | ( KYPH | Quote | Chart | News | PowerRating) |
25.46 | Top of range, closing in hammer pattern off test of key daily supports on strong, increased trade |
453 | 741 |
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 |
| Netflix | ( NFLX | Quote | Chart | News | PowerRating) |
44.66 | Bottom of range close, below key 50-Day SMA & EMA and recent price supports, on increased trade |
1,814 | 2,265 |
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 |
| Symantec | ( SYMC | Quote | Chart | News | PowerRating) |
66.06 | 3,302 | 3,317 |
| Xilinx | ( XLNX | Quote | Chart | News | PowerRating) |
35.11 | 7,563 | 9,649 |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
56 | 4,338 | 5,067 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Sina.com | ( SINA | Quote | Chart | News | PowerRating) |
31.38 | 10,314 | 16,873 |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
25.10 | 58,973 | 103,644 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler