Wednesday’s Top Stocks
The ETFs established another trend day lower in Tuesday’s session. Negative
news from Secretary of Defense Rumsfeld, and a blast in the Philippines were
catalysts in today’s decidedly downward action. Also weighing in on the market
was “The House of Morgan,” who nailed the Homebuilders, specifically
pinpointing Lennar Homes, and both GM and Ford, seen waving for help from the
side of the road. Volume picked up, but still could be best described as
lackluster, while the trading that did take place, was seen as decisively
bearish in terms of market breadth.
In two sessions, we’ve gone from
testing the upper boundaries of our established ranges, to our current state of
trying out technical supports. The VIX is back up near the midpoint of its
several-week trading range, while the VXN continues its insolence, and lack of
respect for its more established elders. Both the DIAs and the SPYs are within
2% of testing year lows, while the QQQs are about 3.5% from this established
low.
An argument could be made for some
potential support in the ETFs at these levels, so reversal setups could be in
the offing, but I won’t argue too hard for this to happen. If it does, we’ll be
ready. The one thing I will argue in support of is to always stay prepared with
your lists of High and Low RS issues, and then execute those stocks exhibiting
the best characteristics for the market climate “du jour.” Bon soir.
Hottest Sectors (HOLDRs): Biotechs
(
BBH |
Quote |
Chart |
News |
PowerRating)
and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors (HOLDRs): Retail
(
RTH |
Quote |
Chart |
News |
PowerRating)
and Software
(
SWH |
Quote |
Chart |
News |
PowerRating)
Wednesday’s HELVETICA>stocks to watch:
High
RS issues
closing in Top of Range.
Stocks are scanned from 3 Month RS of 80 or higher
and TM’s Proprietary and Technology 10 Momentum lists on the Indicators page.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Wallace Computer | ( WCS | Quote | Chart | News | PowerRating) | 91 | 25.92 | 831K | 1,115M |
| Biovail | ( BVF | Quote | Chart | News | PowerRating) | 89 | 35.84 | 1,040M | 1,884M |
Weak RS issues closing in
Bottom of Range.
Stocks
are scanned from 3 Month RS of 35 or lower and TM’s Implosion and Technology
Implosion Lists on the Indicators page.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| XL Capital | ( XL | Quote | Chart | News | PowerRating) | 33 | 68.50 | 824K | 1,395M |
| United Healthcare | ( UNH | Quote | Chart | News | PowerRating) | 61 | 82.44 | 2,202M | 1,928M |
class=890430920-15102001>
High RS issues with Volume
Surge in last hour.
Stocks are scanned from 3 Month
RS of 80 or higher and TM’s Proprietary and Technology 10 Momentum lists on the
Indicators page.
None Today.
Weak RS issues with
Volume Surge in last hour.
Stocks are scanned
from 3 Month RS of 35 or lower and TM’s Implosion and Technology Implosion Lists
on the Indicators page.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Marriott | ( MAR | Quote | Chart | News | PowerRating) | 31 | 29.36 | 1,061M | 753K |
| Harley Davidson | ( HD | Quote | Chart | News | PowerRating) | 19 | 37.51 | 2,355M | 3,180M |
Stocks in Slim
Jims
High RS Slim Jims.
class=890430920-15102001>Stocks are
scanned from 3 Month RS of 80 or higher and TM’s Proprietary and Technology 10
Momentum lists on the Indicators page.
None Today.
Weak RS
Slim Jimsclass=890430920-15102001>.
class=890430920-15102001>Stocks
are scanned from 3 Month RS of 35 or lower and TM’s Implosion and Technology
Implosion Lists on the Indicators page.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Sears | ( S | Quote | Chart | News | PowerRating) | 15 | 20.14 | 4,701M | 7,308M |
| Bristol-Myers | ( BMY | Quote | Chart | News | PowerRating) | 37 | 22.93 | 6,135M | 4,069M |
class=890430920-15102001>
High RS
Reversal Patterns.
Stocks with 3 Month RS of 80 and / or
Institutional Favorites that are setting up on a closing basis as potential long 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 1,2,3s and Slim Jim (SJ) consolidations. Background
supports in the form of Fibonacci levels, EMAs (DEMA=daily ema), and former price supports are
used in the decision making process.
class=890430920-15102001>
None Today.
class=890430920-15102001>Low RS
Reversal Patterns.
Stocks with 3 Month RS of 35 and / or
Institutional Favorites that are setting up (within .15 of trigger) on a closing basis as potential
short reversal pattern
candidates. Patterns include 1,2,3s and Slim Jim (S.J.) consolidations. Whenever
possible background evidence of resistance in the form of Fibonacci levels, EMAs, and former price supports are
used in the decision making process.
class=890430920-15102001>
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, pattern (Slim
Jims), or last hour volume surges, indicative of follow through in the very near term. Due to the
institutional participation, which can provide additional follow through not
always found in less active issues, the 3 Month RS criteria is more subjective, and quite often less stringent in
evaluating an issues near term prospects. Program trading (which affects many of these
issues) can also be viewed as a potential beneficial factor when stocks listed
below are exhibiting price pattern setups on an intraday and / or daily chart
basis.
Institutional
Favorites
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
EchoStar Communications | ( DISH | Quote | Chart | News | PowerRating) | 94 | 27.66 | 3,767M | 10,9887M |
Xilinx | ( XLNX | Quote | Chart | News | PowerRating) | 83 | 22.42 | 10,749M | 14,035M |
Amazon | ( AMZN | Quote | Chart | News | PowerRating) | 55 | 22.26 | 7,281M | 5,444M |
class=890430920-15102001>Institutional
Laggards.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
Kohls | ( KSS | Quote | Chart | News | PowerRating) | 11 | 46.25 | 3,502M | 3,723M |
Gilead Sciences | ( GILD | Quote | Chart | News | PowerRating) | 39 | 33.75 | 3,009M | 2,019M |
Microsoft | ( MSFT | Quote | Chart | News | PowerRating) | 29 | 23.07 | 72,412M | 56,743M |
Best of luck with your trading. Please use
protective stops on class=890430920-15102001> all trades.
P.S. I’ve
just released a new trading module on Intraday Breakouts. If
class=890430920-15102001>
you’d like more information, click
here.