Tuesday’s Top Stocks
The major indices opened fractionally higher as earnings season spurred some
early buy side interest before a batch of economic reports at 7:00 AM Oakland
time led to more vigorous buying–which sent both the Dow and S&P500 to
fresh pivot highs (but still below the April highs). Unfortunately for those
bulls that took the rest of the session off, a fairly lethargic grind higher
gave way to further incidents of geopolitical unrest (I think that was the
excuse) which hit the tape in the second half of trade–leading to a second
session of profit-taking, albeit a mixed one at that. Closing prices have
the Nasdaq Composite and S&P500 finishing fractionally around the unchanged
mark–between a loss of .20% to a .23% gain respectively. Volume came in a bit
heavier and above-average, and with a tailing bar lower in the S&P500, this
cautious bull is still standing with his horns down.
Well today I’m just tired, kind of like the market itself, it seems. The only
real technical note of interest are the semiconductors (SMH) retest of last
week’s lows. As a heavily weighted sector within the Nasdaq, what happens to
these guys in the next one to two sessions should be of significance for the
other indices, especially the Naz. I’ll personally be focused on technical
short-term bounces off those levels (or possibly the March lows) should an intraday
pattern develop. But, with intermediate downtrends still intact in the broader
averages, and what I’ll just call, some very strange-looking charts due to the
recent volatility, I’m not gonna bet the family ranch on it, as this cautious
bull doesn’t mind steering clear if the charts ultimately say ‘no mas’. The
one thing you won’t find me steering clear of, regardless if we get a reversal
down here or not–is our daily dose of disciplined, consistent daytrading tactics.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
14.98 | up .04 | cvr 5 sell | 2% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
21.83 | unched | na | 1% below | not at extreme |
Hottest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating)
Tuesday’s stocks to watch:
Technical Strength.
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 |
| Bradley Pharma | ( BDY | Quote | Chart | News | PowerRating) |
29.50 | High volume continuation day out of RSB congestion pattern | 384 | 723 |
| Mercury Interactive | ( MERQ | Quote | Chart | News | PowerRating) |
46.60 | Inside doji consolidation day on lighter trade, within daily congestion pattern |
2,672 | 1,582 |
| Allos Therapeutics | ( ALTH | Quote | Chart | News | PowerRating) |
5.09 | high volume thrust day finishing in top of range consolidation | 1,348 | 3,892 |
Technical Weakness.
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 |
| Marvell Technology | ( MRVL | Quote | Chart | News | PowerRating) |
41.96 | Bottom of range close below key daily chart supports | 2,966 | 1,766 |
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 |
| Symantec | ( SYMC | Quote | Chart | News | PowerRating) |
48.98 | 1,2,3 daily chart reversal pattern w/ negative divergence | 4,637 | 7,201 |
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 |
| Invitrogen | ( IVGN | Quote | Chart | News | PowerRating) |
75.80 | 935 | 675 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| General Electric | ( GE | Quote | Chart | News | PowerRating) |
30.55 | 28,450 | 26,838 |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
56.99 | 4,794 | 3,749 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler