Tuesday’s Top Stocks
Got Milk? It seems that while there remain some ‘beefs’ about our bovine friends
the ETFs (amongst others)–the indices themselves really don’t have a problem
‘mooving’ higher. Monday ushered in the unofficial start to trading in 2004,
and yet another session that extended the Santa Claus Rally. For the day, the
ETFs finished up between 1.38% to 1.78% on heavier but below-average volume…now
that deserves a double ‘duh.’ Any remaining bears have that little piece of
technical confirmation to cling to (or is it claw?) for the time being–but
with a combined ratio of 2.75:1 for advancing issues over decliners, I’d personally
say that today deserves a great big ‘Yahoo’ and no real reason not to believe
in a Santa Claus on Wall Street just yet.
More fresh highs in both the Diamonds and Spyders, but more importantly, the
once leading and dearly beloved tech and growth-laden Nasdaq also broke above
prior highs to close through the 2000 barrier. Individual names are continuing
to break out, while others are forming solid weekly high-level bases from which
the potential for a next leg up exists.
As mentioned last week, I personally would like to see the stodgier, old school
names take a breather–but in the realm of my stock universe which focuses on
growth and technology issues, it continues to be an environment that demands
taking the trigger on stocks that are setting up properly. Who knows, once they
decide that ‘beef is good food’ again, the bull in the market will probably
be stinking up the joint–but until that time, you might as well enjoy what
Wall Street is cooking up, or just stick to the same ol’ tried and true recipe
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) |
16.09 | down .38 | cvr 1 buy | 0% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
23.63 | down .38 | none | 4% below | not at extreme |
Hottest Sectors : Gold/Silver (XAU) and Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : NA
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 |
| Ascential Software | ( ASCL | Quote | Chart | News | PowerRating) |
26.21 | Above average volume b/o of weekly high level base by 1% |
599 | 637 |
| OSI Systems | ( OSIS | Quote | Chart | News | PowerRating) |
19.80 | High of day close on relative strong volume b/o of 2 month high level base |
171 | 161 |
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 |
| Avid Technologies | ( AVID | Quote | Chart | News | PowerRating) |
47.90 | Low RS stock in extended consolidation pattern below key MAs |
631 | 475 |
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 |
| JOS A. BANKS | ( JOSB | Quote | Chart | News | PowerRating) |
34.68 | Bottom of range consolidation on above average volume test of 200-Day MAs ‘from below’ |
394 | 468 |
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 |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
54.82 | 9,146 | 7,047 |
| Interactive Corp | ( IACI | Quote | Chart | News | PowerRating) |
33.51 | 8,637 | 5,242 |
| KLA-Tencor | ( KLAC | Quote | Chart | News | PowerRating) |
57.62 | 7,916 | 4,689 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| NA | NA | NA | NA | NA |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler