Tuesday’s Top Stocks
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Summer, that special time of year when light volume, lack of news, and unsubstantiated rumors seem to fit Wall Street as snug as a Speedo. All the ingredients were in place Monday, as an early continuation of last week’s two session deterioration had the Spyders dropping through key technical levels by nearly a percentage point.
A move by bargain hunters, bottom pickers, and shorts covering, was then ‘confirmed’ by rumors of Saddam’s demise, establishing a ‘trend day reversal’ off session lows in the ETFs. All said and done our market proxy friends finished off fractionally around the unchanged mark. Price in the market proxies might have been swayed by the gospel of the Street, but volume and breadth were uninspired by the latest ‘news’, as both of these indicators finished off as ‘non believers.’ Decliners stayed, or weighed on top of advancing issues by a 1.6:1 margin, while volume also came in less than
enthusiastic as both floors finished with below average trade.
Anxious fingers were all over the recent technical supports of 97.85 – 98.05 in the Spyders. The index broke quickly through this area by about 1% in the first hour of trade, before reversing to trend higher, and right back into our ‘home on the range.’ With nary an intraday pattern or technical reason for the move off the lows, all I can say is ‘who knew?’ It certainly wasn’t me, as I was looking for something a little bit more compelling. Maybe it was Goldy, or maybe it was Morgan, but with intraday setups that were making sense elsewhere, all I can say is, ‘who has time to care.’ As long as we have our consistent, disciplined daytrading keying us into market action that does give us an edge, I know that’s all I really care about all the time, bottom line.
By staying prepared with our list of High and Low RS issues, we wait patiently for those consistent reversal and continuation setups that put us ‘in the know.’ We might not be insiders, but I do know if you trade your edge when you know it’s present, it’s not a gift, but something called smart money in action.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
22.65 | down .13 | CVR Buy 1,2 | 8% above | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
32.65 | up .17 | CVR Buy 1,2 | 5% above | Not At Extreme |
Hottest Sectors :Â Telecomm
(
TTH |
Quote |
Chart |
News |
PowerRating) and
Gold/Silver (XAU)
Weakest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)Â
Tuesday’s HELVETICA>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 | Today’s Volume |
| Boston Scientific | ( BSX | Quote | Chart | News | PowerRating) |
64.33 | Cup and handle daily pattern, closing near top of range intraday in an ascending triangle pattern |
4,030m | 2,171m |
| International Rectifier |
( IRF | Quote | Chart | News | PowerRating) |
32.04 | High level consolidation, closing 52-week highs on volume |
895k | 2,051m |
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 | Today’s Volume |
| Taro Pharmaceuticals | ( TARO | Quote | Chart | News | PowerRating) |
51.98 | Mid level consolidation, below 50-Day EMA on strong volume |
417k | 658k |
class=890430920-15102001>
class=890430920-15102001>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.
class=890430920-15102001>Long Reversals class=890430920-15102001>Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Network Appliances | ( NTAP | Quote | Chart | News | PowerRating) |
16.38 | Intraday consolidation at highs, off of daily chart hammer pattern |
5,917m | 4,975m |
class=890430920-15102001>
Short
Reversals
Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
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, 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 | Today’s Volume |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
37.38 | 11,938m | 9,718m |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
84.95 | 3,633m | 2,993m |
| Analog Devices | ( ADI | Quote | Chart | News | PowerRating) |
39.73 | 3,852m | 3,451m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Lexmark | ( LXK | Quote | Chart | News | PowerRating) |
63.20 | 3,834m | 2,200m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler