Tuesday’s Top Stocks
Well, what won’t go down must go up–right? Not exactly, but in the case of
our bovine indices it’s a story that ‘bears’ repeating, apparently. On the session,
the major indices all finished solidly higher between 1.25% and 1.52%, to fresh
multi-year highs. Oh ‘Yahoo!!’ Well, not quite it seems–as volume actually
came in at its lowest levels since the new year began. It’s always something
I tell ya, as the stars never seem to align perfectly. Personally speaking I
don’t consider this a problem, as it continues to keep this here ‘cautious bull’
on his toes, umm hoofs.
Maybe it was the technical pullback in the semis mentioned last week, or
maybe it was the fact that after two weeks of pretty volatile conditions around
many recent pivot breakouts, most growth stocks had done a reasonable job of
consolidating–but this cautious bull’s hoof was raised in today’s session. I’m
not totally positive, but I do know that a lot of my own analysis for our
members was bovine in nature (11 out 12 market calls to the bovine camp today),
and that most definitely had to do with the fact that after pouring over several
hundred charts, I came out seeing more stocks setting up as longs, rather than
shorts. There weren’t nearly as many breakout candidates, which one should
expect after six weeks of trending higher (and still no broader average
pullback), but the charts coming in today were looking like a more gentle bull
in today’s trade–rather than the raging, horn stabbing stuff that I’ve
personally been ‘hiding’ from as of late.
Will tomorrow bring more of the same?? I dropped my crystal ball, so I dunno
to tell you the truth. Ultimately, a pullback (other than in the semis) is still
gravely needed in my humblest of opinions, but sometimes the market just doesn’t
care about my forecasts–and personally speaking, the only thing that I really
care to predict is that disciplined, consistent daytrading tactics is the only
way to play this or any market environment.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
14.32 | down .55 | na | 8% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
21.26 | down .01 | cvn 1 buy | 2% below | not at extreme |
Hottest Sectors : Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating) and Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Gold/Silver (XAU)
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 |
| Sohu.com | ( SOHU | Quote | Chart | News | PowerRating) |
39.71 | top of range consolidation on increased, above-average volume b/o of handle pattern within ‘right side of base’ |
3,470 | 3,969 |
| USANA | ( USNA | Quote | Chart | News | PowerRating) |
33.77 | High of day close on increased, above-average volume b/o of price and MA resistance within weekly basing pattern |
399 |
592 |
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 |
| Citrix | ( CTXS | Quote | Chart | News | PowerRating) |
21.02 | Bottom of range consolidation on increased, above-average volume, below recent price and MA supports |
2,894 | 4,766 |
| Microchip | ( MCHP | Quote | Chart | News | PowerRating) |
29.70 | Bottom of range consolidation on above-average volume to 60-Day closing low below price supports |
3,136 | 4,078 |
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 |
| NA | NA | NA | NA | NA | NA |
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 |
| JP Morgan | ( JPM | Quote | Chart | News | PowerRating) |
40.26 | 9,043 | 12,282 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
48.16 | 10,893 | 7,818 |
| Hewlett Packard | ( HPQ | Quote | Chart | News | PowerRating) |
26.12 | 11,506 | 11,959 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Eli Lilly | ( LLY | Quote | Chart | News | PowerRating) |
68.88 | 3,804 | 4,524 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler