Tuesday’s Top Stocks
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‘Testing, testing….’ Monday’s trade was only a test, to see if you were awake after a wonderful weekend out East, or wherever your digs may be. The ETFs were in holding patterns today as investors anxiously made like Godot once more. With ‘key’ reports out tomorrow, as well as the all important Consumer Confidence number, traders will have the opportunitiy to overreact to their spouses and children’s maxing out of the credit cards. For today, all we had was extremely light, below average volume on contracting volatility. The ETFs closed mixed on the session. The Diamonds lost some of their recent luster, down .36%, with the Spyders on their ‘tail’, down .26%. The Q’s were able to maintain the integrity of the group, finishing up .28%. We can only wait and see what tomorrow has in store for investors…my guess is a Tuesday opening, 9:30 EST.
‘Who will win…who will lose?’ Well, if you decided to push the envelope in Monday’s trade, you might have been disqualified from today’s show. Extremely light volume and a narrowing intraday range dictated trade. In a couple of our ETF friends we did manage to test some recent highs, and then some, before ‘giving it up’ in lethargic trade. Wake Up!!! The market is still in a ‘confirmed rally’, but with deteriorating technicals, i.e., breakdowns, volume. This action is also coinciding with different daily chart consolidation patterns that are desperately trying to resolve themselves, before they bore us all to death. Keep it light and tight, and in the meanwhile, we can always stick with consistent, disciplined daytrading tactics.
Sure the beach is nice, but daytrading successfully is always the sunnier proposition. By taking only those classic setups as they poke their heads through an otherwise grim day, we don’t need to ‘sweat it’ in front of our monitors. We know that as long as we stick to the plan and don’t overstay our welcome, we’ll continue to appreciate a job well done, instead of being well done at the end of the day.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
19.93 | down .01 | none | 6% below | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
30.40 | up .36 | CVR 2 Sell | 6% below | Not At Extreme |
Hottest Sectors : Health/Medical
(
$HMO.X |
Quote |
Chart |
News |
PowerRating)
and Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Gold/Silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) and
Pharmaceuticals
(
PPH |
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 |
| Paychex, Inc. | ( PAYX | Quote | Chart | News | PowerRating) |
31.55 | Top of range consolidation on b/o of daily trading range highs (31.33-31.35) with above average volume |
2,795m | 3,471m |
| OmniVision | ( OVTI | Quote | Chart | News | PowerRating) |
39.70 | Closed at high of day on strong volume, nearing 52-week highs out of daily chart consolidation pattern |
1,518m | 1,213m |
| Sirius Satellite |
( SIRI | Quote | Chart | News | PowerRating) |
1.89 | Wide Range Bar higher near test of one month highs on volume surge |
82,476m | 65,993m |
| Sierra Wireless |
( SWIR | Quote | Chart | News | PowerRating) |
9.46 | Fresh 52-week highs out of daily trading range on volume |
441k | 780k |
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 |
| NVIDIA | ( NVDA | Quote | Chart | News | PowerRating) |
20.41 | Bottom of range consolidation, weakest close in two month period |
8,689m | 5,681m |
| Sabre Holdings | ( TSG | Quote | Chart | News | PowerRating) |
23.84 | Intraday low level consolidation pattern below 50-Day EMA on volume increase |
1,058m | 1,258m |
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 |
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 |
| KLA-Tencor | ( KLAC | Quote | Chart | News | PowerRating) |
53.25 | 10,426m | 8,366m |
| United Technologies | ( UTX | Quote | Chart | News | PowerRating) |
76.66 | 2,247m | 2,322m |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
38.62 | 13,127m | 11,540m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| IBM | ( IBM | Quote | Chart | News | PowerRating) |
82.54 | 7,632m | 6,384m |
| Johnson & Johnson | ( JNJ | Quote | Chart | News | PowerRating) |
51.46 | 9,138m | 7,582m |
| IDEC Pharmaceuticals | ( IDPH | Quote | Chart | News | PowerRating) |
33.87 | 6,321m | 3,579m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler