Tuesday’s Top Stocks

  • May 19, 2003
  • Chris Tyler

How “low” can it go? An
unnerving earnings report out of home improvement giant Lowe’s (LOW), “icy”
remarks by Treasury Secretary Snow regarding the US dollar policy, and an
unwelcome Supreme Court ruling regarding pharmaceutical companies financial
responsibilities for the uninsured nailed the ETFs in Monday’s trade. The
market proxies gapped lower and continued to trend lower throughout the session,
finishing down between 2% – 3.5% and slightly off their worst levels of the day.
Volume was decidedly lighter on the day, especially on the NYSE, but the
majority of shares that did change hands did so at lower levels as decliners
knocked off advancers by a margin nearing 2.5:1 on both exchanges.

Easy come, easy go, and just another case of how
when the market falls on its own weight, it still feels like a stampede (and
very heavy), regardless of the volume. Two sessions, realistically just one
(today’s), have erased two weeks of work by the bulls, or was the ducks?
Personally, I’m not sure which at times, but I can say that with the discipline
to adhere to your stops, and prudent money management rules, you didn’t have to
participate as one of the lemmings that were evident in today’s trade. There’s
been plenty of time, and signs, to take at least a portion off the table, at
much better levels. What’s the saying? “Bulls make money, bears make money, and
(fill in the blank) get slaughtered.” The uptrend continues to be in place, and with a
decisive percentage route, and many individual names testing important technical
levels, it’s time to be on the lookout for potential reversals in High RS issues
for the position traders out there.

For the rest of us, the daytraders at
large, regardless of what might happen in tomorrow’s trade, our mission is to
stay prepared by getting ready tonight. Each and every day, we need to maintain
the edge by keeping our lists of both High and Low RS issues and then executing
consistently those trades that are setting up the next day if we are to be
consistently profitable within the ebbs and flows of the market’s daily
gyrations.

Volatility Readings:

Volatility
Index		 Close Net
Change		 Signals/Direction %
Above/Below 10 Day Moving Average		 Significance
VIX 23.04 Up
2.03		 CVR 2 SELL 3%
Above 		Not
At Extreme
VXN 31.10 Up
.08
CVR 1,2,6 SELL		 3.5%
Below
Not At Extreme

Hottest Sectors : Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating) and Utilities
(
UTH |
Quote |
Chart |
News |
PowerRating)


Weakest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating) and
Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)


Tuesday’s HELVETICA>stocks to watch:


High

RS issues
closing in Top of Range.

Stocks are scanned from 3 Month RS of 80 or higher
and TM’s Proprietary and Technology 10 Momentum lists on the Indicators page.




class=890430920-15102001>









class=890430920-15102001>









class=890430920-15102001>

















size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength 		class=890430920-15102001> size=2 Helvetica face=”Arial”>Price class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

Stratasys


(
SSYS |
Quote |
Chart |
News |
PowerRating)
98
31.23
293K
606K

American Pharmaceuticals

(
APPX |
Quote |
Chart |
News |
PowerRating)
89
29.89
1,079M
2,460M

class=890430920-15102001>
Advanced Auto Parts
class=890430920-15102001>

(
AAP |
Quote |
Chart |
News |
PowerRating)
class=890430920-15102001>
85
class=890430920-15102001>
59.99
class=890430920-15102001>
544K
class=890430920-15102001>
1,322M




Weak RS issues closing in
Bottom of Range.

Stocks
are scanned from 3 Month RS of 35 or lower and TM’s Implosion and Technology
Implosion Lists on the Indicators page.

class=890430920-15102001>



























size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength 		class=890430920-15102001> size=2 Helvetica face=”Arial”>Price class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

Forest Labs


(
FRX |
Quote |
Chart |
News |
PowerRating)
26
48.85
2,971M
3,388M

Kohl’s

(
KSS |
Quote |
Chart |
News |
PowerRating)
12
51.30
4,576M
3,946M

High RS issues with Volume
Surge in last hour.

Stocks are scanned from 3 Month
RS of 80 or higher and TM’s Proprietary and Technology 10 Momentum lists on the
Indicators page.


None Today.


Weak RS issues with
Volume Surge in last hour.

Stocks are scanned
from 3 Month RS of 35 or lower and TM’s Implosion and Technology Implosion Lists
on the Indicators page.




























size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength 		class=890430920-15102001> size=2 Helvetica face=”Arial”>Price class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

Chico’s


(
CHS |
Quote |
Chart |
News |
PowerRating)
12
19.15
1,357M
3,603M

Whole Foods

(
WFMI |
Quote |
Chart |
News |
PowerRating)
18
52.35
1,241M
1,560M


Stocks in Slim
Jims


High RS Slim Jims.

class=890430920-15102001>Stocks are
scanned from 3 Month RS of 80 or higher and TM’s Proprietary and Technology 10
Momentum lists on the Indicators page.






















size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength 		class=890430920-15102001> size=2 Helvetica face=”Arial”>Price Type class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

Mid-Atlantic Medical


(
MME |
Quote |
Chart |
News |
PowerRating)
84
46.55
reversal long
502K
551K





Weak RS



Slim Jimsclass=890430920-15102001>.

class=890430920-15102001>Stocks
are scanned from 3 Month RS of 35 or lower and TM’s Implosion and Technology
Implosion Lists on the Indicators page.

class=890430920-15102001>

None Today.



class=890430920-15102001>Long
Reversal Setups Closing Basis.

Stocks that are setting up on a closing basis as potential long 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 1,2,3s
,Slim Jim (SJ)
consolidations, and Triangles. Background
supports in the form of Fibonacci levels, EMAs (DEMA=daily EMA), and former price supports are
used in the decision making process.




class=890430920-15102001>










class=890430920-15102001>




























size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength 		class=890430920-15102001> size=2 Helvetica face=”Arial”>Price Pattern
Type		 class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume
Endo
Pharmaceuticals
(
ENDP |
Quote |
Chart |
News |
PowerRating)		 80 15.48 SJ Top of
range		 576K 1,429M

class=890430920-15102001>
Boston Scientific
class=890430920-15102001>

(
BSX |
Quote |
Chart |
News |
PowerRating)
class=890430920-15102001>
62
class=890430920-15102001>
47.53
class=890430920-15102001>
1,2,3


class=890430920-15102001>
2,838M
class=890430920-15102001>
3,373M
class=890430920-15102001>Boston
Communications Group
class=890430920-15102001>

(
BCGI |
Quote |
Chart |
News |
PowerRating)
class=890430920-15102001>
33
class=890430920-15102001>
15.86
class=890430920-15102001>
SJ near top of range
after daily test of supports
class=890430920-15102001>
738K
class=890430920-15102001>
2,195M

class=890430920-15102001>Short
Reversal Setups Closing Basis.

Stocks that are setting up (within .15 of trigger) on a closing basis as potential

short reversal pattern
candidates. Patterns include 1,2,3s and Slim Jim (SJ) consolidations. Whenever
possible, background evidence of resistance in the form of Fibonacci levels,
EMAs and former price supports are
used in the decision-making process.



class=890430920-15102001>
None Today.




class=890430920-15102001>


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, pattern (Slim
Jims), or last hour volume surges, indicative of follow through in the very near term. Due to the
institutional participation, which can provide additional follow through not
always found in less active issues, the 3 Month RS criteria is more subjective, and quite often less stringent in
evaluating an issues near term prospects. Program trading (which affects many of these
issues) can also be viewed as a potential beneficial factor when stocks listed
below are exhibiting price pattern setups on an intraday and / or daily chart
basis.

Institutional
Favorites


None Today.

Institutional
Laggards.



































size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength 		class=890430920-15102001> size=2 Helvetica face=”Arial”>Price class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

Cephalon


(
CEPH |
Quote |
Chart |
News |
PowerRating)
7
41.50
2,016M
2,378M

Lowe’s

(
LOW |
Quote |
Chart |
News |
PowerRating)
30
40.30
4,807M
16,448M

Maxim Integrated

(
MXIM |
Quote |
Chart |
News |
PowerRating)
30
36.45
8,854M
9,015M

Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.


P.S. I’ve
just released a new trading module on Intraday Breakouts. If
you’d like more information, click
here.