Tuesday’s Top Stocks
If it’s any consolation to cautious bulls out there–at least today measured
in as a consolidation day, instead of the typical fresh 52-Week High bit that
has been so common during the last couple of weeks. I’ll admit, I’m at an absolute
loss–but the market sure isn’t, as once again all three major averages finished
up on the session with gains ranging from .50% to 1.20%. Volume still ran heavy,
above the 50-day MA–but was somewhat lighter on the session as the ‘consolation-consolidation’
day was established, but somehow within all the ‘profit-taking,’ looking at
the ratio of advancers over decliners–which came in at 1.8:1–it still doesn’t
look like money management skills have entered the picture just yet.
Simply unbelievable. Now where the heck is that head-dress with the horns??
I should have known that Friday was the correction. Yikes, oh well–but personally
I’d rather have my foot instead of a hoof in mouth these days. I think there’s
a saying that you are only allowed to sell the top, and buy the bottom once
in your lifetime. The rest of our waking hours are spent somewhere in the middle…and
right now it feels a bit more like the Twilight Zone. That’s OK though, and
I know that I’m not alone, as even the Connors VXN reading is totally confused
as it spits out a buy and sell signal–and that is something that you don’t
see too often. Hmm, maybe I am alone when it comes to the market, but hopefully
you’ll continue to join me in the one thing that seems to make more ‘cents’
more often than not–and that’s by maintaining our sanity with consistent, disciplined
daytrading tactics.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
16.25 | up .31 | none | 0% | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
22.56 | down .45 | cvn 1 buy, 6 sell | 2% below | not at extreme |
Hottest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Retail
(
RTH |
Quote |
Chart |
News |
PowerRating) and Pharmaceuticals
(
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 |
| SpectraLink | ( SLNK | Quote | Chart | News | PowerRating) |
22.34 | top of range consolidation on ‘right side of base’ breakout, with increased, above-average volume |
329 | 1,524 |
| eResearch | ( ERES | Quote | Chart | News | PowerRating) |
32.99 | top of range consolidation on increased above-average trade, nearing weekly b/o triggers |
920 | 2,549 |
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 |
| TALX Corp | ( TALX | Quote | Chart | News | PowerRating) |
20.90 | Bottom of range consolidation after failure to clear 200-MA resistance zone |
195 | 197 |
| Pacificare | ( PHS | Quote | Chart | News | PowerRating) |
60.27 | Bottom of range consolidation below key technical supports | 842 | 881 |
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 |
| Sina.com | ( SINA | Quote | Chart | News | PowerRating) |
41.24 | 8,170 | 3,263 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
49.74 | 11,672 | 14,951 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Lowes | ( LOW | Quote | Chart | News | PowerRating) |
51.51 | 3,377 | 10,966 |
| Paychex | ( PAYX | Quote | Chart | News | PowerRating) |
35.58 | 2,360 | 2,410 |
Best of luck to everyone. Please use protective stops on all trades.