Tuesday’s Top Stocks
Seriously, were you expecting something different? It might have been Monday,
but for quite a few of the Big Dawgs’, it was a day spent somewhere
other than the canyons of Wall Street. As such, the ETFs while sporting
green on the session, were anything but trader friendly. With gains of .19%
to .43% on well-below-average volume, strike one up for the ‘inside’ consolidation
day, but stay prepared within the market’s ‘confirmed rally.’ After
Friday’s ‘Follow-Thru’ day in the Naz, don’t get too disappointed if some profit-taking
enters the
picture
as
some
of the
players
return
to the playing pitch in tomorrow’s trade.
With each day that the indices get to settle in, the condition will become
less overbought. In that light, today was a good first day after a bullish
gap thrust higher. But, with holiday-induced trade I personally don’t mind
sitting back when others weren’t even at their desks today. I’m personally
expecting something along the lines of a constructive pullback (2 to 3 sessions),
before the bull can really ‘get his legs.’ In the interim though, with breakouts
happening
in
the here and now, there’s no reason not to take the classic intraday setups
that continue to trigger out of our consistent, disciplined brand of daytrading.
Who knew, seriously??? The ETFs while eerily quiet, didn’t stop many of the
market’s strongest issues from busting moves in today’s trade. With stocks
from our list of High and Low RS issues triggering out of classic patterns,
today might have been a holiday for some, but for those who stick to the
religion of disciplined, consistent daytrading, today was a different kind
of celebration, and one that deserves a special nod to our friends over at
the Nasdaq and NYSE.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
19.81 | down .68 | CVR 3 Sell | 10% below | at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
29.47 | up .27 | none | 3% below | not at extreme |
Hottest Sectors : Disc Drives (DDX) and Broker/Dealers (XBD)
Weakest Sectors : Health/Medical (HMO) and Biotech
(
BBH |
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 |
| Radware | ( RDWR | Quote | Chart | News | PowerRating) |
21.23 | Top of range consolidation on above-average volume on daily follow-thru bar |
199 | 227 |
| NTL Inc. | ( NTLI | Quote | Chart | News | PowerRating) |
54.46 | High level consolidation on test of 52-week highs, on above-average volume |
612 |
759
|
| Digital River | ( DRIV | Quote | Chart | News | PowerRating) |
31.25 | Top of range consolidation near 52-week highs and pattern b/o levels |
903 | 407 |
| Genaera | ( GENR | Quote | Chart | News | PowerRating) |
5.90 | High volume top of range close, out of multi-week congestion pattern |
1,016 | 3,562 |
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 |
| Genentech | ( DNA | Quote | Chart | News | PowerRating) |
78.80 | Bottom of range consolidation, testing daily price supports below the 50-Day EMA |
2,599 | 2,331 |
| Surmodics | ( SRDX | Quote | Chart | News | PowerRating) |
26.79 | Bottom of range consolidation on increased above-average volume, on trend bar out of pullback from lows |
499 | 732 |
| Teva Pharmaceuticals | ( TEVA | Quote | Chart | News | PowerRating) |
56.94 | Bottom of range consolidation below 20 and 50-Day EMAs, on resumption bar after pullback |
2,174 | 1,734 |
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 |
| Synopsys | ( SNPS | Quote | Chart | News | PowerRating) |
27.60 | Daily test of bull gap daily supports, forming 5 & 30-minute double bottom patterns |
879 | 3,135 |
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 |
| Nextel | ( NXTL | Quote | Chart | News | PowerRating) |
21.46 | 18,188 | 19,086 |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
56.74 | 5,553 | 3,674 |
| Lowes | ( LOW | Quote | Chart | News | PowerRating) |
56.79 | 4,104 | 3,666 |
| PMC Sierra | ( PMCS | Quote | Chart | News | PowerRating) |
15.39 | 5,785 | 5,129 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| NA | NA | NA | NA | NA |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler