Tuesday’s Top Stocks
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Put quite simply, the ETFs taught traders a quick lesson about the dog days of summer. After wide, scary red bar reversals on technical tests of various levels depending on your trading vehicle of choice, today’s trade was marked by contracting volatility in lethargic, light volume trade. Our index proxy friends finished off the day fractionally mixed, between a whopping -.28% to an out of this world .20%. As mentioned volume was anemic, but decliners or profit-takers did take the upper hand in Monday’s session as the breadth ratio was in favor of lightening up before heading off to the beach.
The pullback has begun, but with the big players probably scooping up more sand than stocks this week, there doesn’t seem a compelling reason to take a stand unless we see intraday patterns develop off of deeper retracements. Fridays action and whatever you want to call today’s trade doesn’t exactly necessitate a reason to play hardball. Testing the waters off technical levels such as today’s 1,2,3 reversal setups in the Diamonds is one thing, but I’ll be darned if I won’t tell you to keep to the life preserver that’s kept you afloat. Diamonds might be a girl’s best friend, but for us, daytrading with consistency and discipline is always closest to our hearts.
If you’re going to enjoy the show, you might as well do it with the tools that got you there in the first place. Stick with the High and Low RS issues, or index proxies, and then only take the trade when you see the trigger with edge appear. To do anything differently, you just might end up with an end of summer burn of another kind. I don’t know about you, but I prefer the red to be on my back, and not in my face. Until then, relax, class will be back in full swing before you know it.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
20.32 | up .05 | CVR 1 Buy | 1.5% above | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
29.34 | down .13 | CVR 1 Buy | 2.5% above | Not At Extreme |
Hottest Sectors :Â Pharmaceuticals
(
PPH |
Quote |
Chart |
News |
PowerRating)Â and
Utilities
(
UTH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Disc Drives (DDX) and
Telecomm
(
TTH |
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 |
| Macromedia | ( MACR | Quote | Chart | News | PowerRating) |
23.11 | Top of range consolidation on engulfing bullish bar with volume |
1,018m | 1,515m |
| Toll Brothers | ( TOL | Quote | Chart | News | PowerRating) |
29.61 | Upper level consolidation to close slightly thru daily pivot highs on volume |
1,215m | 1,885m |
| Monster | ( MNST | Quote | Chart | News | PowerRating) |
27.28 | High of day close on volume, slightly thru prior highs |
2,215m | 2,401m |
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 |
| Silicon Laboratories | ( SLAB | Quote | Chart | News | PowerRating) |
41.12 | high volume continuation of Friday’s action, closing in bottom of range consolidation |
1,157m | 1,383m |
| Quest Diagnostics | ( DGX | Quote | Chart | News | PowerRating) |
57.82 | Low of day close below two week consolidation | 982k | 361k |
| Oxford Health | ( OHP | Quote | Chart | News | PowerRating) |
35.42 | Bottom of range close below daily price supports on Low RS stock |
1,043m | 952k |
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 |
| Magma Design | ( LAVA | Quote | Chart | News | PowerRating) |
20.17 | Closing price above intraday low level consolidation after testing daily 38% Fibonacci retracement from July lows |
843k | 431k |
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 |
| Adobe | ( ADBE | Quote | Chart | News | PowerRating) |
37.91 | 3,587m | 1,561m |
| Wal-Mart | ( WMT | Quote | Chart | News | PowerRating) |
59.07 | 7,117m | 6,043m |
| Juniper | ( JNPR | Quote | Chart | News | PowerRating) |
15.90 | 11,798m | 10,316m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
52.26 | 6,067m | 3,985m |
| Amgen | ( AMGN | Quote | Chart | News | PowerRating) |
66.20 | 8,472m | 5,542m |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
34.82 | 7,103m | 5,055m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler