Tuesday’s Top Stocks
The S&P500 and Nasdaq Composite retreated in orderly fashion after last weeks
volume and price surge off April lows– established on Wednesday’s reversal
day. For the day the two indices both closed lower, off between .44% to .63%
respectively, on lighter, below-average trade. It actually felt a lot like a nothing kind of day
once again (and it probably was)–that is, unless you happened to be a
shareholder of OSI Pharmaceutical–then you just might have been humming a
little ditty about Monday being so good indeed. Hats off to those folks
fortunate enough to have been involved in some of the upside action. As for
those folks holding Internet Capital Group (ICGE)–well they’ve discovered one
the oldest tricks in the book, the reverse split. To that, I say, ‘shame on
you’, ’cause smoke and mirrors are not the way to cure that stock’s
ailments.
I’m feeling lazy on this Monday afternoon, and besides, Friday’s words kind
of sum it up best, as this cautious bull’s attitude hasn’t changed one iota.
Rehashing those thoughts, if the move in the market is truly
for real (I’m personally still sidelined on that one), growth stocks will
once again take over the reigns as they carve out weekly consolidations worthy
of consideration. While some have definitely recouped lost ground, and a few
solid names have actually started breakout attempts–I’m personally thinking time is still on our side
when it comes to a consistent environment wherein breakouts aren’t immediately
followed by hard pullbacks that test the stamina of most growth stock investors.
Throw in the lower highs on the daily charts that are still set in place in all
three major indices, growth stocks, as mentioned, that don’t look to be in any
particular hurry, low volatility readings, and a nice percentage move already in
place–and this cautious bull doesn’t mind sticking with our disciplined, consistent brand of daytrading.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
14.92 | up .72 | na | 7% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
21.83 | up 1.15 | na | 1% below | not at extreme |
Hottest Sectors : Biotech
(
BBH |
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) |
28.40 | High volume b/o attempt of consolidation within daily chart ‘right side of base’ |
384 | 514 |
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 |
| Sierra Wireless | ( SWIR | Quote | Chart | News | PowerRating) |
29.02 | Bottom of range close on above-average trade, recrossing the 89-day ema |
1,343 | 1,903 |
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 | 4,772 | 4,044 |
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) |
76.57 | 933 | 1,166 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Caterpillar | ( CAT | Quote | Chart | News | PowerRating) |
80.90 | 2,547 | 2,472 |
| Maxim Integrated | ( MXIM | Quote | Chart | News | PowerRating) |
46.03 | 5,713 | 5,948 |
| Halliburton | ( HAL | Quote | Chart | News | PowerRating) |
30.90 | 4,321 | 2,989 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler