Tuesday’s Top Stocks
No tricks on Friday. Monday, it turns out, was a treat of sorts for many investors.
The latest and greatest numbers were embraced by Wall Street, or was it Main
Street? With the holiday ‘boo’ gone, investors put on ‘another kind of hide
and seek’ as our bovine friends sought out equities– sending the ETFs up between
.86% to 1.96%. ‘Moove’ they did, especially in the Naz, where above-average
and increased trade on this the sixth day off our most recent lows qualified
for the much-heralded ‘Follow-Thru Day’ or FTD. Unfortunately, the broader S&P
cash wasn’t able to follow suit, as it decided to ‘hide’ with lower and below
average-volume figures on the session. Hmmm, I don’t know if it’s easier to
say ‘yikes’ or ‘yahoo’ within the market’s ongoing ‘confirmed rally.’
Well, the leading Naz did it right in Monday’s trade, and breakouts were triggering,
continuing, and in general doing all sorts of bullish things to keep one wanting
to play the game from the long side today. Whether it will last is another story
altogether (and probably some other reporting source as well). Within the bull
market, there’s some other bull that just doesn’t stand up as well, in my book.
The low volatility readings, lack of strong buying at fresh highs in the other
indices, and pattern highs that still exist within the framework of resistance
levels, blah, blah…All I know is if you can’t beat ’em, at least join ’em
intraday out the same disciplined, consistent patterns that poke their heads
up, regardless if it’s a charging bull, an angry bear, or something inbetween.
Halloween is over, but it was still time to put on the bull costume. I might
think the market should be trading differently than it is, but the reality of
it is this–it just doesn’t matter. If you want to play the game on an intraday
basis, you gotta play it by how everyone else sees it. If the market is taking
stocks higher out of quality patterns that present a definable edge, take it
for all it’s worth. It might not make sense all the time, but seeing is winning
in the here-and-now world of daytrading, and besides–in the end, it’s the other
‘cents’ that really matter at the end of the day.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
16.44 | up .34 | cvr 5,6 sell | 7% below | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.30 | up .41 | none | 4% below | Not At Extreme |
Hottest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)and Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Gold/Silver (XAU) 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 |
| Scientific Games | ( SGMS | Quote | Chart | News | PowerRating) |
13.88 | Angular daily channel b/o on confirmed volume, closing top of range consolidation |
713 | 1,218 |
| Magma Design | ( LAVA | Quote | Chart | News | PowerRating) |
24.98 | top of range consolidation on daily continuation bar above 52-week pattern b/o on above average trade |
843 | 2002 |
| Flagstar Bancorp | ( FBC | Quote | Chart | News | PowerRating) |
24.44 | top of range consolidation on mid level b/o of daily chart handle, w/ confirming volume |
496 | 915 |
| BEA Systems | ( BEAS | Quote | Chart | News | PowerRating) |
14.26 | High volume b/o of mid level handle pivots on daily chart | 7,837 | 12,994 |
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 |
| JetBlue | ( JBLU | Quote | Chart | News | PowerRating) |
54.26 | Low of day close on volume, on daily chart breakdown of price supports |
1,530 | 2,919 |
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 |
| Overseas Shipping | ( OSG | Quote | Chart | News | PowerRating) |
26.75 | Triangle closing pattern testing prior daily chart b/o levels |
149 | 343 |
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 |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
57.51 | 8,116 | 8,135 |
| Xilinx | ( XLNX | Quote | Chart | News | PowerRating) |
33.30 | 7,718 | 7,827 |
| Verisign | ( VRSN | Quote | Chart | News | PowerRating) |
17.05 | 3,113 | 4,812 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Amgen | ( AMGN | Quote | Chart | News | PowerRating) |
61.16 | 8,759 | 9,412 |
| General Electric | ( GE | Quote | Chart | News | PowerRating) |
28.80 | 19,010 | 18,041 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler