Tuesday’s Top Stocks
Saddam who?? Personally, I was prepared for some bullish action this week–that
is, before I started hearing about it on Sunday morning. My ‘intermediate-term’
perspective was looking to enter the choppy landscape of the Nasdaq’s two month
consolidation–that is, until I heard ‘the news.’ It quickly became time to
play defense with existing positions as it looked like there just might be more
than ‘one capture’, as fresh longs and shorts would more than likely evaporate
any existing patterns that had been deemed worthy, based on Friday’s closing
prices.
Unfortunately for ‘raging bull,’ the highs of the session literally printed
right at the open, and for the most part, never gave ‘cautious bulls’ a really
good reason to enter the fray in today’s trade…oh, thank heaven, ’cause all
said and done, with the indices all forming bearish wide-ange bars, down between
.15% to 1.5%, it looks like CNBC can bring out the Dow 10,000 party hats once
more…but this time from above.
No ‘yahoo’ today for the market, only proper money management was in order.
Coming in long some existing call positions should have been an absolute blessing.
Go figure, I personally had to be content with booking some profits at levels
not too far removed from Friday’s prices as many positions collapsed too quickly
to get the closing trade off at higher prices. It certainly didn’t take CNBC
very long to come up with a new ‘whipping boy’, as Saddam did make for some
good competition for their most recent Dow 10,000 campaign, but unlike the prior
celebration, today was a bit more disconcerting.
Today’s ‘gap and crap’ action has more ‘flyers and plungers’ attached to it–and
in my humble opinion, a pretty darn good reason to keep to the stance of being
content with ‘cautious bull’, while the market wrestles with raging bulls and
angry bears. Of course, while we wait to see if we can don the ol’ Dow 10,000
party hats once more, we can always stick with the tried and true stuff that
got us here in the first place–namely consistent, disciplined daytrading.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
16.91 | up .96 | cvr 1 sell | 2% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
27.07 | up 1.21 | none | 0% | not at extreme |
Hottest Sectors : Gold/Silver (XAU)
Weakest Sectors :Â Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating) and Oil Services
(
OIH |
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 |
| Genzyme | ( GENZ | Quote | Chart | News | PowerRating) |
46.99 | Top of range consolidation on increased, above average volume, thru both 50-Day MAs |
2,935 | 4,187 |
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 |
| Career Education | ( CECO | Quote | Chart | News | PowerRating) |
37.62 | Low level consolidation on increased above average volume, breaking both 200-Day MAs |
3,286 | 7,372 |
| Hutchinson Tech | ( HTCH | Quote | Chart | News | PowerRating) |
29.46 | Low of day close, on increased above average trade, thru both price and 200-Day MA supports |
385 | 667 |
| Hyperion Solutions | ( HYSL | Quote | Chart | News | PowerRating) |
30.60 | Engulfing bearish bar on increased above average trade, recrossing prior pattern supports and below the 200-Day MAs |
667 | 894 |
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 |
| NA | NA | NA | NA | NA |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Wal-Mart | ( WMT | Quote | Chart | News | PowerRating) |
50.74 | 8,766 | 23,240 |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
49.80 | 4,250 | 5,650 |
| Network Appliance | ( NTAP | Quote | Chart | News | PowerRating) |
18.64 | 6,087 | 9,563 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler