Tuesday’s Top Stocks
Well it turns out that Dell wasn’t the culprit in today’s bout of ‘profit-taking.’
Nope, it turns out that the ‘dudes’ in Michigan were to blame, as evidenced
by the latest University of Michigan Consumer Confidence number–which came
in well below expectations. Heck, why don’t they give the survey to California–where
life is a beach, so to speak? Oh well, for the session, the S&P500 and Nasdaq
Composite finished down between .49% to .97% on lighter, and below-average trade–although
it must be said that the selling that did take place kept decliners (or the
profit-taking issues) ahead of those that were still stepping up to the plate,
by a margin of 2:1. No ‘yahoo’ here, but this cautious bull can only think of
one thing, ‘Dude, it’s only the latest and greatest number in a long line of
very, very important numbers still yet to come in the world’s greatest ongoing
show.’
The dreaded two-day pullback. Yeah, it would have been nice to bring out the
horns before the long weekend–but such is life on Planet Earth, and the world
of market mayhem within an established uptrend. The 20-day EMA in the Nasdaq
Composite didn’t hold–and personally speaking, this cautious bull doesn’t like
that action. Mr. Bill might be tickled by the lighter volume, but in my book–price
matters. This doesn’t mean I’ve turned into a raging bear or anything–it’s
just a time to keep on the defensive with any open positions that may be profitable.
If stops are hit, even if the market is doing its light-volume thingy–I bow
out, and look for fresh opportunities. Last time I checked, money management
has everything to do with price, and not rationalizing keeping on a loser of
a position because real sellers weren’t apparent.
The S&P500 is still holding up perfectly well, and one or two sessions
could easily resume the Nasdaq’s trajectory up, but remember the old adage,
‘markets can fall on their own weight.’ We are still in an uptrend as technical
levels were held in the Naz and the damage inflicted from the January highs
was less than the 10% benchmark set by most all technicians. Personally speaking
however, this cautious bull doesn’t wait around for the indices to confirm a
stop loss on any open positions. Not that any harm was done in this corner for
the time being, but that fate is always a possibility and something that I take
full accountability for, by always keeping stops in place. Of course, if CNBC
is all smiles, then I know it’s time to par down the holdings while the getting
is good. That’s about the only certainty in this darned market–besides the
fact that good, bad, bull, or bear, I think it’s always best to stick with disciplined,
consistent daytrading tactics.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
15.54 | up .64 | cvr 1,9 sell | 4% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
24.49 | up .96 | na | 3% below | not at extreme |
Hottest Sectors : NA
Weakest Sectors : Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating) and Internet
(
HHH |
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 |
| Guitar Center | ( GTRC | Quote | Chart | News | PowerRating) |
35.78 | Top of range consolidation on increased, above-average volume (IAA)–continuation day out of right side of base consolidation pattern |
469 | 554 |
| Arrhythmia Research | ( HRT | Quote | Chart | News | PowerRating) |
42.67 | Top of range consolidation on IAA volume b/o of weekly consolidation pattern |
272 | 701 |
| Watson Pharma | ( WPI | Quote | Chart | News | PowerRating) |
49.11 | Top of range consolidation on increased volume, closing at pivot highs within right side of weekly basing pattern |
1,126 | 1,028 |
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 |
| Netease.com | ( NTES | Quote | Chart | News | PowerRating) |
40.83 | Bottom of range consolidation on increased volume closing slightly below 200-Day SMA supports |
2,477 | 1,552 |
| Global Payments | ( GPN | Quote | Chart | News | PowerRating) |
44.50 | Bottom of range close, slightly below price and 89-Day EMA support on above-average volume |
162 | 184 |
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 |
| Rambus | ( RMBS | Quote | Chart | News | PowerRating) |
25.51 | Inside doji consolidation on above-average volume, after technical daily double bottom |
3,090 | 9,507 |
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 |
| Lowes | ( LOW | Quote | Chart | News | PowerRating) |
57.60 | 3,711 | 4,530 |
| Marvell Technology | ( MRVL | Quote | Chart | News | PowerRating) |
43.30 | 2,874 | 3,273 |
| Agilent | ( A | Quote | Chart | News | PowerRating) |
37.08 | 3,194 | 1,999 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| 3M | ( MMM | Quote | Chart | News | PowerRating) |
79.68 | 2,872 | 2,839 |
| Paychex | ( PAYX | Quote | Chart | News | PowerRating) |
34.88 | 2,408 | 3,231 |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
44.43 | 5,241 | 3,145 |
| KLA-Tencor | ( KLAC | Quote | Chart | News | PowerRating) |
54.34 | 7,385 | 7,175 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler