Wednesday’s Top Stocks

 

With the ISM report out in the first half hour of trade, it was all the market needed to break the ‘critical’ technical neckline on the Spyders
(SPY).
But sometimes the initial reaction to a report, especially during pre-holiday trade at a level that everyone is watching (you can thank CNBC), just might not be what you had anticipated. And so it went in Tuesday’s ‘show.’ As influential groups were breaking key support levels, it seems that the appropriate course of action was a rally out of various technical intraday consolidations on the
5-Minute chart. Adding fuel to the upside reversal in afternoon trade was news that a judge dismissed a Merrill Lynch
(
MER |
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Chart |
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PowerRating)
research suit on behalf of dissed investors. Go figure? Henry Blodgett’s one-time favorite stock, Yahoo
(
YHOO |
Quote |
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PowerRating)
which probably left a lot of investors scorned not so long ago, scored fresh 52-Week Highs. As one of the leaders in the Internet space
(
HHH |
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PowerRating)
, the stock was quickly snapped up in afternoon trade along with the rest of its relative strength brethren. Just say ‘Yahoo?’

The ETFs finished up between .75% and 1.25% on volume, and breadth statistics that just aren’t measuring up to the sights to be found at one’s favorite holiday venue. Volume came in slightly lighter than yesterday, although above the action notched during last week’s downward performance. Advancers over decliners meanwhile, were a bit more pretty, as both ‘floors’ showed a bias towards gainers, although with ratios coming in at roughly 1.5:1 for the NYSE and very close to the 1:1 mark, also left something to be desired.

An intraday break through the neckline for the early ‘easy trade’…and then the reversal. Dooh!! It was classic, but admittedly I didn’t play it perfect for our subscribers. I ‘threw out’ range breakdowns thru ‘the number’, which worked handily, but the second entry off a pullback from lows, out of an intraday reversal pattern didn’t work quite as well. It was a ‘clean setup’ with solid background evidence, but sometimes you gotta ‘pull up the shorts’ and know when it’s time to leave the ‘john.’ They can’t all work every time, that’s the name of the game, even with consistent daytrading. The real key to consistent daytrading isn’t about being 100% accurate. It’s about cutting losses and being able to take the classic intraday patterns for
‘what they are’, on a consistent basis. That means for exits too, as we are only talking about the 5-Minute chart, and not something potentially bigger…are we now?

We use the big picture for potential confirmation whenever possible, but when executing our list of High and Low RS stocks out of intraday setups, we are keenly aware of what is happening in the here and now. It’s called the ‘present’ for a reason, but that’s only if we are willing to accept the gift while it’s there for the taking.

Volatility Readings:

Volatility Index Close Net Change Signals/Direction % Above/Below 10 Day Moving Average Significance

VIX
(
$VIX.X |
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PowerRating)
21.29 down .33 none 3% below
Not At Extreme

VXN
(
$VXN.X |
Quote |
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PowerRating)
30.22 down 1.01 CVR 6 Sell 5% below
Not At Extreme

Hottest Sectors : Semiconductors
(
SMH |
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and Gold
& Silver
(
$XAU.X |
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Weakest Sectors : Oil Services
(
OIH |
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PowerRating)
and
Biotechs
(
BBH |
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Wednesday’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
Avid Technology
(
AVID |
Quote |
Chart |
News |
PowerRating)
36.41 Outside day to close at top of range on strong
volume
720k 806k
China.com
(
CHINA |
Quote |
Chart |
News |
PowerRating)
9.25 52-Week high
on volume to close in upper part of range
2,761m 15,635m
Marvell
Technology

(
MRVL |
Quote |
Chart |
News |
PowerRating)
36.50 52-Week high
on volume, closing top of range
3,415m 6,344m




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
Laboratory Corp.
(
LH |
Quote |
Chart |
News |
PowerRating)
29.67 Low RS issue testing daily technical supports
with volume increase
1,908m 1,146m
New Century Financial
(
NCEN |
Quote |
Chart |
News |
PowerRating)
40.78 Bottom of range close thru daily technical
supports on volume
811k 2,053m

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
Linear Technologies
(
LLTC |
Quote |
Chart |
News |
PowerRating)
33.04 Hammer close above daily price resistance of
trading range, on volume
7,282m 7,138m
Mercury Interactive
(
MERQ |
Quote |
Chart |
News |
PowerRating)
40.12 Outside day reversal to close near top of
daily chart trading range, on volume increase
3,646m 3,895m

class=890430920-15102001>

Short
Reversals



Closing Basis.


None Today.

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
eBay
(
EBAY |
Quote |
Chart |
News |
PowerRating)
106.60 6,860m 8,433m
Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating)
33.64 12,932m 9,989m
Goldman Sachs
(
GS |
Quote |
Chart |
News |
PowerRating)
85.85 4,550m 5,920m
QLogic
(
QLGC |
Quote |
Chart |
News |
PowerRating)
49.32 5,933m 4,434m
Network Appliances
(
NTAP |
Quote |
Chart |
News |
PowerRating)
16.67 7,060m 5,748m

Institutional
Laggards.

Name Symbol Price Average Volume Today’s Volume
Walgreens
(
WAG |
Quote |
Chart |
News |
PowerRating)
30.23 3,766m 5,744m
Cerner
(
CERN |
Quote |
Chart |
News |
PowerRating)
21.78 701k 1,276m

Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.

Chris Tyler