Tuesday’s Top Stocks
Apparently ‘they’, the smart money, has been rotating out of tech, according
to well-informed sources within Wall Street’s media machine. You know, I really
hate when Mondays’ usher in such hard hitting stories that catch a guy off guard–thank
god today’s news didn’t qualify. On the session though, ‘more’ distribution
in the Nasdaq Composite took that index proxy down 1.90%, on a second session
of increased, above-average trade. The S&P500 was also off, although the
milder .74% loss on lighter, below-average trade might have some bulls feeling
pretty secure about their market-weighted holdings. Now investors are pinning
their hopes on the sheriff of the semiconductor sector, Texas Instruments (TXN)–to
stop the stampede out of tech-town and hopefully become something legends are
made of…’oh yahoo.’
Well here we are again, or at least almost–reversal zones abound in many tech
issues, as well as the index and sector proxies such as the semiconductors (SMH)
and Nasdaq 100 (QQQ). I guess we’ll just have to wait until tomorrow to find
out if the promise can deliver. Personally, I’d be a whole lot more excited
about potential set ups if the S&P500 could stampede some bulls down to
the 50-Day MA zone, and also if I knew for certain that when I call for a market bottom, that
the market would actually respect my authority (South Park). Of course, in the
real world things are rarely perfect–but that’s what makes the game fun, and
all the more reason to keep sticking with our consistent, disciplined 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) |
15.30 | up .50 | na | 4% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
24.02 | up 1.94 | cvn 2 sell | 4% above | not at extreme |
Hottest Sectors : Telecom
(
TTH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : 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 |
| California Amplifier | ( CAMP | Quote | Chart | News | PowerRating) |
16.75 | Top of range close on increased, above-average (IAA) volume b/o attempt of two month daily consolidation |
415 | 1,527 |
| Draxis Health | ( DRAX | Quote | Chart | News | PowerRating) |
5.10 | Top of range close on volume surge within eight week basing pattern |
345 | 1,478 |
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 |
| Varian Semi | ( VSEA | Quote | Chart | News | PowerRating) |
39.69 | Low of day close on IAA volume engulfing bearish bar | 794 | 1,142 |
| MGIC Investment | ( MTG | Quote | Chart | News | PowerRating) |
64.50 | Relative volume b/d of daily chart technical supports | 920 | 780 |
| Wellpoint Health | ( WLP | Quote | Chart | News | PowerRating) |
111.44 | Bottom of range consolidation within inside bar on daily, after Hangman topping pattern |
851 | 625 |
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 |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
69.83 | 7,042 | 14,252 |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
39.30 | 7,463 | 5,622 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Caterpillar | ( CAT | Quote | Chart | News | PowerRating) |
76.89 | 2,516 | 2,849 |
| Dell | ( DELL | Quote | Chart | News | PowerRating) |
31.20 | 17,123 | 26,404 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler