Tuesday’s Top Stocks
Nice light and tight consolidation days were scored in both the Nasdaq Composite
and S&P 500 cash indices. At the close of today’s game, the score was a
fractional affair slightly below the unchanged mark–off between .17% to .18%.
Volume came in even lighter and below-average on the ‘digestion bar’ witnessed
in today’s trade. In that type of environment–if you step up to the plate and
take a really big swing you might end up striking out first, before the potential
homerun–which seems a very appropriate analogy for our friend Dick’s Sporting
Goods (DKS). A good stock to cheer on, but no ‘yahoo’ just yet.
I liked the action today–it might not have been a daytrader’s favorite, but
from a position point of view the market is looking primed for a FTD or ‘Follow-Thru-Day.’
That’s the day where all the boys and girls who were caught dumping, decide
to become value investors and Mr. Bill gets to shine once again as the breakouts
in individual stocks follow suit by making their moves with strong institutional
volume. Some have already started to defy the broader market by busting moves
before their larger, slower dumb cousins decides to join the party.
Ironically, some of the names breaking out come from sectors of concern (at
least by some individuals)–check out CACH, PSUN, and URBN from the retail sector.
Looks like somebody has been checking out already, at least at the counter–’cause
it seems their ‘specialty’ is moving higher while the market decides what to
do next, off of key price supports. Well, I don’t know about you, but I’ll just
continue to stick with my own specialty–namely 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) |
15.74 | down .24 | na | 6% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.26 | up .59 | na | 1% below | not at extreme |
Hottest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating) and Gold/Silver (XAU)
Weakest Sectors : Semiconductors
(
SMH |
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 |
| Silicon Labs | ( SLAB | Quote | Chart | News | PowerRating) |
57 | Top of range consolidation on increased, above-average (IAA) volume breaking thru ‘right side of base’ consolidation highs on wide range bullish bar |
1,458 | 4,648 |
| Gtech Holdings | ( GTK | Quote | Chart | News | PowerRating) |
57.84 | 3-Week pattern b/o on IAA volume, closing top of range | 534 | 772 |
| Cache | ( CACH | Quote | Chart | News | PowerRating) |
28.51 | Weekly pattern b/o on IAA volume, closing top of range | 74 | 203 |
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 |
| General Mills | ( GIS | Quote | Chart | News | PowerRating) |
44.92 | Engulfing bearish bar test of MA resistance, finishing bottom of range on above-average trade |
1,576 | 1,732 |
| Amerigroup | ( AGP | Quote | Chart | News | PowerRating) |
36.98 | Low RS issue b/d from two day consolidation, on IAA volume | 229 | 628 |
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 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
46.95 | 10,366 | 5,735 |
| Xilinx | ( XLNX | Quote | Chart | News | PowerRating) |
42.51 | 7,432 | 6,112 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
44.45 | 4,156 | 3,905 |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
57.73 | 4,222 | 3,953 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler