Tuesday’s Top Stocks
‘Big Blue’
(
IBM |
Quote |
Chart |
News |
PowerRating) showed another shade of itself today,
green…and in
the process paved the way for a broad-based rally that included two of our
three amigos scoring fresh 52-week highs on gains of .75% to
1.65%. The Nasdaq Composite fared the best as heavily weighted component sectors
such as networking (NWX) and biotechnology
(
BBH |
Quote |
Chart |
News |
PowerRating) led the charge higher,
and almost gave IBD’ers another coveted ‘follow-thru day.’ Volume based on
the broader S&P500 cash index was slightly less compelling as figures came
in below Friday’s levels, but did manage to hold the 50-EMA.If you throw
in the 2.2:1 combined advancers over decliners market breadth statistic, you
just might be willing to belt out ‘Yahoo!!!’ all the same.
‘My bad….not.’ Well, it seems three was more than enough consolidating for
most investors today as the majority of our beloved friends rallied higher.
Not exactly an ebb, but nonetheless, there was definite opportunity in today’s
trade. You can’t always get what you want, or can you? If you let your ego
and etched
in stone
technical levels get in the way, then yes…you won’t. But, if you keep an
open mind and eye to what is happening in the ‘present’, then you’ll certainly
find some gifts that you thought weren’t being offered. We are
still in areas of major technical resistance based on the ‘Fibs.’ I swear I
ain’t telling no lies about this. The CBOE Volatility index (VIX) also broke
to fresh 52-week lows, and today marked what I would personally describe as
‘less enthusiastic follow-thru’ in our breakouts that did trigger. Add ’em
all up, and you
get a caution flag. Hey, you can still stay out and enjoy the ride (using protective
stops), but sometimes when your signals start alerting you to some early, potential
wear and
tear problems,
it doesn’t
hurt to come in for a position pitstop before your ‘wonderful ride’ comes to a
screeching stop due to a more terminal breakdown. Besides, you can always come
back for more tomorrow and trade it up intraday with consistent, disciplined
daytrading, rather than riding it out in the dark, overnight.
With our RDA of classic daytrading setups out of continuation and reversal
patterns, the ‘necessary pullback’ really doesn’t seem so necessary in the
scheme of things. Sure, it would be ‘swell’ if the market did exactly what
I wanted it to each and every day, but I’d rather keep on riding some sweet
intraday waves, regardless of the forecast. Let that award go to someone else,
while we continue to enjoy conditions as they set up in the here and now.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
18.79 | down .58 | none | 5% below | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
29.55 | down 1.15 | none | 2% below | Not At Extreme |
Hottest Sectors : Networking (NWX) and Biotech (BBH)
Weakest Sectors : Telecomm
(
TTH |
Quote |
Chart |
News |
PowerRating) and Retail
(
RTH |
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 |
| Gilead Sciences | ( GILD | Quote | Chart | News | PowerRating) |
69.23 | High of day close in intraday consolidation, nearing weekly hi-level base b/o triggers |
3,634 | 3,241 |
| Neoware | ( NWRE | Quote | Chart | News | PowerRating) |
20.05 | High level consolidation on volume, approaching daily b/o triggers |
398 | 652 |
| Newport | ( NEWP | Quote | Chart | News | PowerRating) |
19.05 | Last hour volume and price surge, near 2-week consolidation b/o levels |
308 | 1,456 |
| Monster | ( MNST | Quote | Chart | News | PowerRating) |
28.50 | High level consolidation above daily b/o pattern levels on volume |
2,192 | 2,459 |
| Exult | ( EXLT | Quote | Chart | News | PowerRating) |
8.84 | High level consolidation on daily volume surge, breaking thru angular and EMA resistance |
604 | 1,725 |
| Netscreen | ( NSCN | Quote | Chart | News | PowerRating) |
25.70 | Mid level consolidation, daily test of handle pivots | 2,035 | 1,326 |
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 |
| UT Starcom | ( UTSI | Quote | Chart | News | PowerRating) |
38.49 | Volume surge on daily technical break of 20 & 50 EMAs, approaching price supports |
2,938 | 13,101 |
| LeapFrog | ( LF | Quote | Chart | News | PowerRating) |
36.90 | Bearish gap lower, on volume increase, closing bottom of range in consolidation pattern |
626 | 943 |
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 |
| Â | Â | Â | Â | Â | Â |
| Â | Â | Â | Â | Â | Â |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| Â | Â | Â | Â | Â | Â |
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 |
| Verisign | ( VRSN | Quote | Chart | News | PowerRating) |
16.07 | 3,523 | 4,300 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
35.54 | 12,349 | 10,723 |
| NVIDIA | ( NVDA | Quote | Chart | News | PowerRating) |
19.54 | 7,924 | 12,499 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Dell | ( DELL | Quote | Chart | News | PowerRating) |
33.68 | 17,081 | 20,458 |
| Costco | ( COST | Quote | Chart | News | PowerRating) |
31.77 | 5,911 | 8,553 |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
52.30 | 12,614 | 9,396 |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
35.79 | 6,927 | 7,658 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler