Wednesday’s Top Stocks
Apparently investors were ‘Fed Up’ in Tuesday’s trade as Uncle Al dropped the
murmur ‘patient’ from the interest-rate dialogue. Personally, I thought I said
it best in our members’ chat today, when I murmured that all they have to do
is what everyone thinks they’ll do, and in an oversold market that will be enough
to get the natives restless.
For the session, the broader averages–after the Waiting For Greespan show
concluded and the initial zigs and zags whipped out those willing to play that
high octane game–were able to finish higher, between .18% to .60% on very mixed
trade. With most of the ‘smart money’ only playing the second half, it’s probably
best to wait, in trying to make an informed decision about their real stamina
(volume) going into the next full game. ‘Yahoo!!’–now that that’s over with,
we can hopefully enjoy some unbridled market fun without worrying about what
the ‘grown-ups like Uncle Al are gonna say’…at least for the time being.
Typical Fed reaction that leaves most of us wondering what the heck it all
really means. In this guy’s most humble opinion, they can spin it so many ways–why
bother? Trade the charts and don’t try to outsmart the smart guys is my advice.
In this corner, with a positive close, but one that makes investors think that
maybe they jumped the gun a bit–I’ll continue to focus on reversal longs as
they seem to be offering the best risk versus reward prospects, and just as
important–they happen to be setting up that way. Some of the recent ‘mania-panic’
issues in the nanotech and security sectors are perking up, so I’ll look to
start there when I come in tomorrow morning. If that doesn’t work, I’ll just
continue to focus on any fresh opportunities by sticking to the basics, namely
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) |
16.36 | down 1.62 | na | 3% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.12 | down .60 | cvn 2, 6 buy | 7% above | not at extreme |
Hottest Sectors : Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
Wednesday’s stocks to watch:
Longs.
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 Assesment | Average Volume 000’s | Today’s Volume |
| Magal Security | ( MAGS | Quote | Chart | News | PowerRating) |
15.30 | Top of range close on increased, above-average volume reversal bar off daily supports |
2,232 | 5,471 |
| Novatel | ( NVTL | Quote | Chart | News | PowerRating) |
15.20 | Top of range close on increased, above-average volume reversal attempt |
1,155 | 1,871 |
| Rambus | ( RMBS | Quote | Chart | News | PowerRating) |
20.15 | Top of range consolidation on increased, above-average volume thrust reversal bar |
3,173 | 7,423 |
| Nanogen | ( NGEN | Quote | Chart | News | PowerRating) |
6.68 | Top of range close on increased, above-average volume reversal bar |
2,683 | 4,753 |
Technical Weakness.
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 Assesment | Average Volume 000’s | Today’s Volume |
| Gtech Holdings | ( GTK | Quote | Chart | News | PowerRating) |
60.60 | Bottom of range close on price failure thru the 20-day ema |
682 | 665 |
| Barnes & Nobles | ( BKS | Quote | Chart | News | PowerRating) |
29.65 | Bottom of range close on increased, above-average volume w/in 3 day Low RS consolidation |
579 | 748 |
^next^
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 |
| Juniper | ( JNPR | Quote | Chart | News | PowerRating) |
23.44 | 15,576 | 20,263 |
| Nextel | ( NXTL | Quote | Chart | News | PowerRating) |
24.70 | 13,194 | 20,264 |
| Citrix | ( CTXS | Quote | Chart | News | PowerRating) |
20.27 | 2,888 | 3,158 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Amazon | ( AMZN | Quote | Chart | News | PowerRating) |
43.94 | 8,042 | 7,276 |
| Maxim Integrated | ( MXIM | Quote | Chart | News | PowerRating) |
45.25 | 5,999 | 9,881 |
| Adobe | ( ADBE | Quote | Chart | News | PowerRating) |
45.95 | 3,451 | 9,380 |
| Halliburton | ( HAL | Quote | Chart | News | PowerRating) |
30.05 | 4,155 | 3,421 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler