Tuesday’s Top Stocks
With gains being extended in all three of the major indices–there is definitely
a whole lot of ‘bull’ going on. Volume continues to pour into equities as session
gains between .15% for the Dow, to a more robust 1% in the Naz, confirmed the
fresh 2.5 year highs. Hmmm, maybe things really are different this time–not,
but it sure has paid to really believe in the old Wall Street adage that the
trend is your friend.
Unfortunately for me, since I don’t believe in most of what Wall Street says,
and instead look to take my cues from more reliable sources, such as charts–lately,
my personal modus operandi has been more of an observer and profit-taker than
anything else. Maybe someday, when others decide to take profits, and things
just don’t look so darned good–maybe then, I’ll be yahooing for more–instead
of feeling that the current market is no place for ‘cautious bull.’
It’s definitely not my market, but somebody’s still finding cash under the mattress,
’cause this thing just won’t go down. Twenty-Five days or five weeks of almost
pure upside for the S&P500, as gains of over 10.5% have been achieved during
this stretch of the market’s confirmed rally. Heck, you could probably just
call this period its very own bull market, for all I know. You would have to
search high and low to find a similar-looking chart, and that too would be an
anomaly. Maybe you’ve been throwing money at the market lately–good for you,
if it continues to work, but just don’t throw caution to the wind.
The time will come for the higher-probability pullback to appear, and guess
what, that doesn’t mean an intraday blip–it might mean we get to test some
of those long-forgotten moving averages that have cleared themselves out of
the way into the lower right-hand corner of your charting package. Until then,
I’ll just continue to preach the same ol’ thing that makes the most ‘cents’
in a market gone wild–namely disciplined, consistent daytrading.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
15.22 | down 1.01 | none | 4% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
20.22 | down 2.42 | none | 10% below | not at extreme |
Hottest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating) and Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Telecomm
(
TTH |
Quote |
Chart |
News |
PowerRating) and Pharmaceutical
(
PPH |
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 |
| TTM Technologies | ( TTMI | Quote | Chart | News | PowerRating) |
19.66 | Top of range consolidation on increased, above-average volume out of pullback pattern to fresh 52-week highs |
752 | 1,146 |
| NetScreen | [NSCN|:NSCN] | 28.99 | Top of range consolidation on increased, above-average volume weekly cup and handle b/o pattern to fresh All-Time-Highs |
1,252 | 3,548 |
| Mercury Interactive | ( MERQ | Quote | Chart | News | PowerRating) |
51.72 | Top of range consolidation on increased above-average volume, out of daily handle |
2,934 | 5,005 |
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 |
| Schnitzer | ( SCHN | Quote | Chart | News | PowerRating) |
45.90 | bottom of range consolidation on above-average, increased volume breakdown of recent technical supports |
991 | 4,156 |
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 |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
60.57 | 4,168 | 7,805 |
| Interactive Corp | ( IACI | Quote | Chart | News | PowerRating) |
34.88 | 8,263 | 5,109 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Dell | ( DELL | Quote | Chart | News | PowerRating) |
35.01 | 15,512 | 20,865 |
| Nextel | ( NXTL | Quote | Chart | News | PowerRating) |
26.50 | 13,049 | 23,645 |
| Home Depot | ( HD | Quote | Chart | News | PowerRating) |
34.94 | 7,977 | 18,098 |
Best of luck to everyone. Please use protective stops on all trades.