Tuesday’s Top Stocks
Lighter volume and fractionally mixed closes for both the S&P 500 and Nasdaq
Composite kind of sum up today’s action best–buyers and sellers beware. With
closing figures on both of these major indices coming in between a gain of .33%
to a small loss of .15%–the numbers don’t really do a fair job of reflecting
the intraday volatility. Although today could be treated more or less as another
consolidation day after key technical tests were established in Thursday’s trade,
the intraday moves were exaggerated by the fact that the Nasdaq had its second-lowest
volume of the year, and this (in one man’s humble opinion) made it tough for
all kinds of animals–whether you play the game as ‘cautious bull’, ‘raging
bull’, or just plain ol’ ‘angry bear.’
Fortunately, even with the volatility there probably wasn’t a whole lot out
there that triggered for ‘cautious bull.’ Personally speaking, I couldn’t make
heads or tails of the rotations today. Forget 12-month or 3-month RS (Relative
Strength)–how about 12 minutes for an RS timeframe suitable for trading? Up,
down, all around–and mostly just unsuitable for getting any type of solid position
going, all said and done. I still like the technical lows forged, but without
follow-through by the Semis and the major averages and proper breakouts triggering,
fresh positions remain for the most part sidelined–and the only position that
I’ll continue to maintain is that disciplined, consistent daytraders still continue
to make the most ‘cents.’
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
16.87 | down .18 | na | 7% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.82 | up .76 | cvn 1, 3 buy | 9% above | not at extreme |
Hottest Sectors : Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating) and Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) and Semiconductor
(
SMH |
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 |
| Integra Life Sciences | ( IART | Quote | Chart | News | PowerRating) |
32.89 | Top of range close w/in daily consolidation in weekly ‘right side of base’ |
322 | 228 |
| AdvancePCS | ( ADVP | Quote | Chart | News | PowerRating) |
58.58 | Top of range close near daily chart pattern b/o levels | 1,321 |
1,018 |
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 |
| Cognos | ( COGN | Quote | Chart | News | PowerRating) |
30 | Inside bar consolidation closing below both 200-Day MAs | 823 | 373 |
| Concord Communications | ( CCRD | Quote | Chart | News | PowerRating) |
17.32 | Doji finish on continuation bar lower on increased, above-average trade |
276 | 579 |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
45.42 | Bottom of range consolidation on increased, above-average volume breakdown of key technical supports |
4,756 | 6,882 |
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 |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
37.50 | 7,594 | 7,807 |
| Sina.com | ( SINA | Quote | Chart | News | PowerRating) |
47.01 | 7,102 | 4,941 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Linear Technology | ( LLTC | Quote | Chart | News | PowerRating) |
39.31 | 4,537 | 5,254 |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
42.90 | 4,163 | 6,546 |
| Amazon | ( AMZN | Quote | Chart | News | PowerRating) |
48.27 | 9,700 | 11,581 |
Best of luck to everyone. Please use protective stops on all trades.