Tuesday’s Top Stocks
Heavier volume would have been nice, but heck, at this point if you can only
get one of the two, I know most investors prefer price. So call it a small
victory for the bulls in Monday’s trade. The ETFs retested Friday’s lows and
various daily technical supports before reversing intraday, to close
near the highs of the session on ‘engulfing bullish’ action.Some end-of-quarter
window
dressing coupled with the lighter volume might point towards a little more
shaking action, but the gains of .66% to 1.75% have given investors at least
a temporary respite from the blood-letting of last week, and some technical
pivots to base any fresh positions against.
The lows off technical levels that we’ll call ‘deep enough’ have held. Pheww…not
so quick though, we still need to see better participation from the institutions
if the lows are really to hold. It should be noted though, that many badly
beaten issues did put in a much stronger session than the indices would suggest,
when looking at their individual price and volume statistics, so toss the bulls
a bone on that one. Also, after several punishing sessions, it probably wouldn’t
take much follow-thru from closing levels to establish fresh buy side interest,
as well as some covering by the recently crowned bears. A lot of possibilities
I’m sure, but within the still ‘confirmed rally’, the only one that I’m fixated
on is once again, disciplined, consistent daytrading.
Well, it turns out that for the indices it was another technical test. For
us to appreciate the consequences while it’s happening, and before it becomes
market news (or rather history) we have to stay prepared better than the next
guy,
and ready for anything that the boys on Wall & Broad can throw at us.
The best way for us to do this of course is by coming in ready to trade our
favorite list of stocks that are setting up intraday out of classic continuation
and reversal patterns. Just like that other game where they mix it up
in order to win, we have to be ready for anything, but only willing
to swing our proverbial bat at those high-percentage pitches that inevitably
come around each and every game.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
22.24 | down 1.56 | cvr 2,6 buy | 6% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
30.66 | down .22 | cvr 2 buy | 2% above | not at extreme |
Hottest Sectors : Networking (NWX) and Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Retail
(
RTH |
Quote |
Chart |
News |
PowerRating) 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 |
| Digital River | ( DRIV | Quote | Chart | News | PowerRating) |
27.89 | Top of range consolidation on ‘Kings & Queens’ daily bars, after test of 50-Day EMA on substantial volume |
953 | 1,116 |
| Whole Foods Market | ( WFMI | Quote | Chart | News | PowerRating) |
55.82 | Wide range bullish bar w/ confirming volume, nearing daily chart handle triggers |
805 |
1,212
|
| Nam Tai Electronics | ( NTE | Quote | Chart | News | PowerRating) |
29.31 | Top of range consolidation on ‘Kings & Queens’ bar w/confirming volume |
661 | 2,102 |
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 |
| Education Mgt. Corp. | ( EDMC | Quote | Chart | News | PowerRating) |
57.40 | Bottom of range on heavy volume, breaking daily chart key technical support levels |
285 | 500 |
| Walgreens | ( WAG | Quote | Chart | News | PowerRating) |
31.12 | Wide range bear bar action on daily, closing in bottom of range consolidation on volume below technical supports |
3,490 | 4,431 |
| Borg Warner | ( BWA | Quote | Chart | News | PowerRating) |
68.88 | bottom of range consolidation on test of 50-Day EMA on volume, w/ negative stochastics divergence |
235 | 263 |
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 |
| Magma Design | ( LAVA | Quote | Chart | News | PowerRating) |
20.71 | Top of range consolidation on confirming volume, closing in Kings and Queens pattern on reverse thru the 50-Day EMA |
856 | 787 |
| Zebra | ( ZBRA | Quote | Chart | News | PowerRating) |
50.57 | Top of range consolidation on relative volume increase off successful test of angular trendline and daly pivot lows |
271 | 542 |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| JetBlue | ( JBLU | Quote | Chart | News | PowerRating) |
62.14 | 123 intraday closing short setup, with 30-min. extended Fib. resistance zone as background evidence and diverging daily stochastics |
1,125 | 1,983 |
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 |
| Network Appliance | ( NTAP | Quote | Chart | News | PowerRating) |
21.02 | 6,575 | 8,029 |
| Symantec | ( SYMC | Quote | Chart | News | PowerRating) |
63.73 | 3,726 | 3,540 |
| Sina | ( SINA | Quote | Chart | News | PowerRating) |
38.65 | 9,465 | 27,088 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| 3M | ( MMM | Quote | Chart | News | PowerRating) |
140.54 | 2,062 | 5,876 |
| IBM | ( IBM | Quote | Chart | News | PowerRating) |
89.45 | 6,826 | 5,123 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler