Wednesday’s Top Stocks

Hmm, I guess sometimes the rules do apply–bearish sentiment, frown lines on
CNBC anchors, and of course, so many double bottoms that made lower lows,
that
it would have been simply irresponsible not to have called for a technical bounce.
Thankfully, the markets did their best to cooperate, as both the S&P 500
and Nasdaq Composite finished higher–up between .76% to 1.86%. Now, it is a
fact that this movement happened on lighter, below-average trade–but, that’s
alright in this cautious bull’s book. Seriously folks, after the whipping the
smart money just took as they unloaded their market-weighted portfolios, can
you blame ’em for wanting to take a break before they make it look really, really
good for the viewing audience?

Very nice action, especially in the Nasdaq. As stated in yesterday’s report
however, I really don’t expect a strong leg up that will seriously break the
intermediate downtrend on the indices. Besides reversal positions, of which
there are still plenty to be found, the move up really affords the opportunity
to look for shorts as we move into key resistance levels. One that I’m still
watching is in the semiconductor HOLDRs (SMH), which comes in around the 38.20
– 39.50 ballpark. If the markets or smart money find it in their best interest
to turn into aggressive bargain hunters, that’s where I’ll start as price moves
to test the zone–using a combo of the intraday and daily charts in looking
for appropriate shorts.

Maybe price doesn’t get there, or maybe it simply blasts through that zone.
I don’t know, and I won’t know until price actually paves the way, so there’s
no point in further conjecture or pontificating. The real point of the matter
is, that wherever price gets to, I’ll be there with our disciplined, consistent
daytrading tactics–and that’s a fact.

Volatility Readings:

Volatility Index Close Net Change Signals/Direction % Above/Below 10 Day Moving Average Significance
VXO
(
$VXO |
Quote |
Chart |
News |
PowerRating)
18.55 down 1.19 cvr 2,6 buy 6% above not at extreme
VXN
(
$VXN |
Quote |
Chart |
News |
PowerRating)
27.63 down .28 cvn 2, 6 buy 8% above not at extreme

Hottest Sectors : Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating)

Weakest Sectors : Pharmaceuticals
(
PPH |
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
August Technology
(
AUGT |
Quote |
Chart |
News |
PowerRating)
13.74 Kings & Queens reversal bar off angular triple bottom
on increased trade
226 170
American Healthways
(
AMHC |
Quote |
Chart |
News |
PowerRating)
21.99 High volume hammer reversal bar out of Fibonacci ‘Fly’
pattern
419 1,571

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
Wellpoint Health
(
WLP |
Quote |
Chart |
News |
PowerRating)
109.62 Bottom of range close after price test of daily resistance
from below
745 669
Eon Labs
(
ELAB |
Quote |
Chart |
News |
PowerRating)
64.80 Increased, above-average volume inside bar below price
and MA resistance
342 346

^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
Dell
(
DELL |
Quote |
Chart |
News |
PowerRating)
36.66 16,805 19,777
Intuit
(
INTU |
Quote |
Chart |
News |
PowerRating)
42.94 2,410 4,186
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating)
27.78 65,517 82,088

Institutional Laggards.

Name Symbol Price Average Volume 000’s Today’s Volume
Electronic Arts
(
ERTS |
Quote |
Chart |
News |
PowerRating)
50.34 3,991 6,549
Eli Lilly
(
LLY |
Quote |
Chart |
News |
PowerRating)
73.85 3,439 3,236

Best of luck to everyone. Please use protective stops on all trades.

Chris Tyler