Tuesday’s Top Stocks
As many folks called it an ‘inside day’ of sorts, battening down the proverbial
hatches before a potentially unwelcome guest makes its way towards parts of
the Eastern seaboard, the ETFs in a sympathetic gesture, also made it somewhat
of an ‘inside’ technical day. Trade was lethargic at best, as one might expect,
as a much bigger storm is brewing outdoors. Our index proxy friends
finished off between .25% to 1% on well-below-average volume, but a slight
bias towards further profit-taking…hmmm, maybe anticipation by some folks
that profits, like plywood, must be in place before the storm hits.
Not a perfect inside day, actually only the ‘spyder’ crawled inside to take
total cover, but it essentially sums up the anemic trade of today’s session.
Monday makes day number nine of our consolidation/pullback. Our technical levels
of support and resistance are still valid. The wall in the SPYs is the 103.75
level, while the downside has found various technical supports (outlined previously),
with today’s lack of activity just adding fuel to those support/resistance
levels once they are eventually broken. So, guess what that makes tomorrow?
You got it, Tuesday, and another opportunity for
us to
navigate the markets through use of our consistent, disciplined daytrading
tactics.
Inside days aren’t normally fun, and today was probably no exception. We didn’t
care for them as kids, and as daytraders, they’re equally annoying when all
that we really want to do is go out and have some fun practicing our disciplined,
consistent brand of trading. Maybe tomorrow will be better, the odds favor
it, but that’s only if you continue to stay prepared with your list of High
and Low RS issues. Today might have been a day of ‘board ’em’, the windows
that is, but hopefully tomorrow the sun will shine upon us once more. Good
luck
to everyone that’s coping with Isabel.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
20.25 | unched | none | 1% above | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
32.93 | down .17 | CVR 6 Buy | 5% above | Not At Extreme |
Hottest Sectors : Retail
(
RTH |
Quote |
Chart |
News |
PowerRating) and Homebuilders (HGX)
Weakest Sectors : Networking (NWX) and Telecomm
(
TTH |
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 |
| Thoratec | ( THOR | Quote | Chart | News | PowerRating) |
18.19 | Top of range close on daily volume surge, nearing 52-week highs within a high-level ‘deep’ multiweek trading base |
836 | 4,728 |
| Hovnanian | ( HOV | Quote | Chart | News | PowerRating) |
64.30 | Top of range consolidation on follow-thru above 3 day highs, out of multiday pullback |
960 | 533 |
| Art Technology | ( ARTG | Quote | Chart | News | PowerRating) |
2.84 | Volume surge b/o of 2-month cup and handle pattern, closing top of intraday range |
819 | 2,733 |
| Sina | ( SINA | Quote | Chart | News | PowerRating) |
39.67 | Top of range lateral consolidation on volume increase, closing at fresh 52-week highs out of multiweek high level base |
8,323 | 9,697 |
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 |
| Teva Pharmaceutical | ( TEVA | Quote | Chart | News | PowerRating) |
58.16 | Outside day on volume increase to close in bottom of range below key 20-Day EMA supports |
2,354 | 1,825 |
| Advance PCS | ( ADVP | Quote | Chart | News | PowerRating) |
45.32 | Bottom of range consolidation, closing slightly below trading range supports, and ‘gap filling’ levels |
1,887 | 2,214 |
| Getty Images | ( GYI | Quote | Chart | News | PowerRating) |
38.22 | Closing bottom of range on continued technical weakness on relatively strong volume |
375 | 435 |
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 |
| Allstate | ( ALL | Quote | Chart | News | PowerRating) |
35.56 | Daily hammer on volume forming potential 3 point of 1,2,3 reversal pattern off the 50% supports from the March lows |
2,385 | 3,718 |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
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) |
53.88 | 4,514 | 9,884 |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
43.45 | 10,785 | 15,574 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Johnson & Johnson | ( JNJ | Quote | Chart | News | PowerRating) |
50.84 | 8,338 | 20,533 |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
35.03 | 6,964 | 5,611 |
| Costco | ( COST | Quote | Chart | News | PowerRating) |
30.91 | 5,615 | 5,841 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler