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 :  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.