Tuesday’s Top Stocks

‘Yahoo???’ — all three of our bovine ETF friends were back in the black in
Monday’s trade,
thanks in part to the early morning propping of the futures
markets off of Citigroup’s
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earnings report and some ‘warm’ remarks
from Mr. Snow (no, not Frosty…this time) about future economic policy that’s
way above my head, but apparently of some concern in the land of fundamental
analysis and investors who don’t like to read charts. As of the close, the index
proxies ended up between .68% and 1.24%, ending a three-session pullback off
recent highs. Volume was lighter and below-average, but position traders getting
in on ‘the dip’ can rest assured that the markets will re-open at 9:30 AM EST,
in order to help with any overnight decisions regarding their market-weighted
portfolios.

Looking at the closing price of the Spyders, all I can think is that we’re
pretty much back where we were a week ago. Sure, there’s been lots of maneuvering
and moving, both by the market and myself lately (hello Oakland)…but essentially
we’re both right back in our same seat from last Monday. I guess it just goes
to show once more why the only way to make consistent ‘cents’ of the market’s
ups and downs is through disciplined, consistent daytrading.

Through our consistent, disciplined intraday approach to the market’s slippery
slopes, we can continue to carve it up each and every day. If ‘Snow’ is in the
forecast, all we can do is to continue doing the thing that got us to these
great heights in the first place–that is, take the day’s conditions as they
are, by using the best vehicles to get the job done. We don’t get to use 4-wheel
drive vehicles, of course, but by trading classic reversal and continuation
patterns out of our list of High and Low RS issues, they’ll surely be a great
choice for landing on top once more.

Volatility Readings:

Volatility Index Close Net Change Signals/Direction % Above/Below 10 Day Moving Average Significance
VXO
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18.16 down 1.03 NA 8% below Not At Extreme
VXN
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24.78 down .55 NA 9% below Not At Extreme

Hottest Sectors : Internet
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and Semiconductors
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Weakest Sectors : Biotechs
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and Oil Services
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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
Pacificare
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55.35 Top of range close out of daily pullback on increased volume
and stochastic c/o
424 380
Talx Corp
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28.09 Daily doji out of 5-day consolidation pattern on increased
volume
258 211
United Online
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27.26 Hammer off 200-day EMA, forming intraday ascending triangle
pattern on heavy volume
2,015 4,472
Citrix
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25.81 Top of range consolidation on 3-day pullback hammer, off
52-week highs
3,180 2,451
Hyperion Solutions
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35 High level consolidation on strong volume, w/in multiweek
basing pattern
908 1,073

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
Magma Design
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20.32 Bottom of range close on technical b/d of 20 and 50-day
ema’s on above-average volume increase
793 922
Celgene
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39.66 Bottom of range consolidation on heavy volume b/d of 50-day
ema
1,573 4,496

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
Artisan Components
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17.70 123 Reversal pattern out of doji and fibonacci support
zone, on strong volume
325 461

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
PMC Sierra
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16.49 5,740 6,132
Biomet
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34.25 2,019 1,455
eBay
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56.60 7,350 12,409
JP Morgan
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36.60 8,481 7,174

Institutional Laggards.

Name Symbol Price Average Volume 000’s Today’s Volume
Amgen
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61,89 7,954 18,315

Best of luck to everyone. Please use protective stops on all trades.

Chris Tyler