Tuesday’s Top Stocks
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How appropriate…the running of the bulls in Pamplona was celebrated here in the States with a stampede of sorts in our beloved ETFs. The Spyders
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SPY |
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DIA |
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QQQ |
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MSFT |
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PowerRating), and of course, the fear of missing out on the next move up were all cited as reasons for today’s rally. Closing numbers have the ‘Big 3’ up between 1.75% – 4.25% with most breadth statistics lending credibility to today’s ‘mooove’ up. Volume was above average on the NASDAQ, but notably light over on the NYSE, while confirming breadth in the form of a better than 2:1 ratio for advancers over decliners helped in today’s ‘bull’ session.
Is it safe? In my humble opinion it’s time to watch your step. The reversal of last week’s technical breakdown, at much lower levels within our well-defined ‘confirmed rally’ was a much better opportunity to position trade off of well-qualified pullbacks. Some of the excuses conjured up in today’s trade, not so coincidentally happening as we test key weekly resistance levels in the NASDAQ, have me running for a little protection. Personally, I never cared much for the running of the bulls down crowded, narrow streets. All I see are some very sharp horns, with a few ducks (quack!!quack!!) thrown in to keep the bullish cheerleading at fever pitch, and totally irreristable for those still waiting for E.F. Hutton to speak. Just remember, the holy grail will always be money management, but better yet the genie in the bottle is still daytrading with discipline each and every day.
Apple pie, camping, seats in the bleacher, a classic Wimbledon showdown, I’m not sure which you took advantage of, but surely you had a great day as it was back to business as usual. When it’s not the 4th or Christmas for that matter, you can never be quite sure what the day is going to bring. But, by preparing to trade the consistent intraday patterns as they appear each and every day, one thing that we do know to be consistently true…’it’s good to be a daytrader.’
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
22.05 | up .44 | none | 0%Â | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
33.51 | up 1.044 | none | 3% above | Not At Extreme |
Hottest Sectors : Semiconductors
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SMH |
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PowerRating) and
Broker/Dealers
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$XBD.X |
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PowerRating)
Weakest Sectors : Oil Services
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OIH |
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PowerRating) and
Gold/Silver
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$XAU.X |
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PowerRating)
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 |
| Quest Diagnostics | ( DGX | Quote | Chart | News | PowerRating) |
67.83 | top of range consolidation at fresh YTD highs out of trading range b/o on confirming volume |
864k | 1,117m |
| Pixar | ( PIXR | Quote | Chart | News | PowerRating) |
63.40 | top of range close out of weekly ‘loose’ cup & handle b/o on good volume |
881k | 803k |
| ADTRAN | ( ADTN | Quote | Chart | News | PowerRating) |
58.05 | consolidation at highs of day to close at fresh 52-week high on volume |
987k | 846k |
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 |
| Weatherford | ( WFT | Quote | Chart | News | PowerRating) |
39.75 | Bottom of range consolidation on a technical breach of daily supports with confirming volume |
1,381m | 3,079m |
| Scholastic | ( SCHL | Quote | Chart | News | PowerRating) |
28.34 | Low RS issue closing bottom of range on technical break of supports |
518k | 1,027m |
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 |
| Motorola | ( MOT | Quote | Chart | News | PowerRating) |
10.03 | 16,442m | 19,245m |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
52 | 5,772m | 3,405m |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
50.70 | 5,942m | 9,229m |
| Applied Materials | ( AMAT | Quote | Chart | News | PowerRating) |
17.63 | 28,953m | 46,279m |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
80.99 | 3,729m | 4,931m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Coca Cola | ( KO | Quote | Chart | News | PowerRating) |
44.95 | 5,216m | 9,895m |
| Vodafone | ( VOD | Quote | Chart | News | PowerRating) |
19.93 | 3,357m | 3,904m |
| BMC Software | ( BMC | Quote | Chart | News | PowerRating) |
15.08 | 2,232m | 9,187m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler