Tuesday’s Top Stocks
Wall Street just loves it when Christmas arrives early and the much-coveted
Santa Claus Rally takes hold. Monday provided more Yuletide spirit as gains
of .25% to .75% in the major indices left most of the boys and girls that work
between the canyons of Wall and Broad grinning from ear-to-ear. Their own special
brand of year-end presents look to be just what they asked for–remember kids,
‘no shaking the trading tree’ before you get to see what’s actually under there.
For the rest of us, with lighter, below-average holiday volume taking hold,
the flying bull looks good on paper, but if you want your own gift–courtesy
of Wall Street–you might want to ‘wrap it up’ before all the bulls leave the
floor, and the only creature that’s still stirring in the NYSE house is none
other than the token mouse.
More of the same within the market’s confirmed rally, only less–there was less
volume as both the Diamonds and Spyders notched fresh 52-week highs. The Nasdaq
Composite is still the poster child for those who have been naughty. Yes, the
Naz did manage to gain ground, but its inside-day action was still lagging the
fuel that’s lifting Santa’s sled and our other index friends… Reindeer? Nope,
try the cyclicals, like good old-fashioned motors and machinery–that’s what
seems to be getting the job done for that group of unlikely bedfellows. Relax,
we know tech and growth stocks have been, as a whole, very good this year. Now
they’re resting horizontally as they look forward to either Santa’s arrival–or
more classic breakouts from weekly bases? Hmm, maybe neither…but meanwhile,
we can keep on receiving our own gifts from the market here in the present by
continuing to practice our disciplined, consistent brand of daytrading tactics.
Volatility Readings:
Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
VXO ( $VXO | Quote | Chart | News | PowerRating) |
16.20 | up .15 | none | 0% below | not at extreme |
VXN ( $VXN | Quote | Chart | News | PowerRating) |
24.76 | down .13 | cvn 6 sell | 5% below | not at extreme |
Hottest Sectors : Internet
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SWH |
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Weakest Sectors : Biotech
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BBH |
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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 |
Biolase Technology | ( BLTI | Quote | Chart | News | PowerRating) |
15.70 | High of day close, increased above-average trade within 2% of Weekly high level base breakout triggers |
554 | 1,269 |
LCA-Vision | ( LCAV | Quote | Chart | News | PowerRating) |
21.26 | Top of range consolidation on continuation move out of daily b/o, on strong daily volume |
213 | 808 |
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 |
Global Payments | ( GPN | Quote | Chart | News | PowerRating) |
45.60 | Pullback from lows, technical daily b/d below price and 20-day EMA supports on increased, above-average volume |
178 | 214 |
Digital River | ( DRIV | Quote | Chart | News | PowerRating) |
21.70 | Bottom of range consolidation, testing the 200-Day SMA on increased volume within 5-day trading range |
812 | 677 |
Odessey Health | ( ODSY | Quote | Chart | News | PowerRating) |
28.12 | Bottom of range close on ‘relative’ volume within established Low RS consolidation |
609 | 580 |
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 |
SafeNet | ( SFNT | Quote | Chart | News | PowerRating) |
31 | Inside consolidation day after engulfing technical hammer establishes daily double bottom |
338 | 63 |
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 |
Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
52.25 | 9,440 | 7,546 |
Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
42.60 | 12,785 | 7,461 |
JP Morgan | ( JPM | Quote | Chart | News | PowerRating) |
36.09 | 7,814 | 8,721 |
Institutional Laggards.
Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
Best Buy | ( BBY | Quote | Chart | News | PowerRating) |
50.45 | 4,301 | 4,980 |
Sina | ( SINA | Quote | Chart | News | PowerRating) |
31.78 | 10,189 | 5,269 |
Checkpoint | ( CHKP | Quote | Chart | News | PowerRating) |
16.55 | 3,114 | 2,527 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler