Wednesday’s Top Stocks
Well the IBD’ers are certainly getting their light volume pullback after last
week’s Follow-Thru-Day. The S&P500 and Nasdaq Composite both pulled back
slightly before finishing fractionally higher–up between .05% to .20%
respectively, in today’s unofficial start to the summertime trading season. In
fact the S&P500’s volume was the lightest of the year. Hmm, I guess some of the
water wings, sunblock, Speedos, and whatever else the smart money takes with
them to the beach, is still being put on in favor of any fresh positions before
Thursday’s triple play (Intel mid quarter, OPEC, and ECB rate decision).
The indices might be trying to do the right thing technically after last week’s
thrust higher–but if you look at individual issues and sectors, it really is
a market made up of stocks and not a stock market per se. Check out the internets
(HHH) recent performance for instance. This sector went from a very mixed performance
two weeks ago to a ‘now, we just gotta have ’em buying frenzy’ in the most recent
days. SINA, YHOO, AMZN and EBAY are names that quickly come to mind as issues
that have moved aggressively higher out of very short high-level bases, or from
V bottoms (I’m not sure if the V stands for vomit or victorious)–and in the
process torn through any existing resistance levels with nary a pause. In this
cautious bull’s eyes they are for the most part, well, well over-bought and
unsustainable within a market that is, still in an intermediate downtrend. Combine
those facts with other technical ingredients such as low volatility readings
and other market bell weathers like MER, NXTL, or JNPR that still look suspiciously
weak–and I personally don’t mind having a bearish to neutral bias when it comes
the market. Of course, if you can get past what the market is, or isn’t doing–maybe
you can try to enjoy some of stocks that make up the market through our continued
use of 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) |
16.62 | up .80 | cvr 2, 6 sell | 6% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
22.57 | up 1.24 | cvn 2, 6 sell | 6% below | not at extreme |
Hottest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Gold & Silver (XAU)
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 |
| Websense | ( WBSN | Quote | Chart | News | PowerRating) |
32.76 | Top of range close, engulfing bar on increased trade within weekly base |
315 | 567 |
| Akamai | ( AKAM | Quote | Chart | News | PowerRating) |
15.80 | Top of range close on pivot, high-volume breakout within weekly base |
3,194 | 4,259 |
^next^
Shorts.
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 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
32.48 | High volume broadening triangle pattern top on daily | 8,963 | 28,617 |
| Newmont Mining | ( NEM | Quote | Chart | News | PowerRating) |
39.06 | Bottom of range consolidation, breaking trendline from counter-trend rally from lows |
5,626 | 4,814 |
| Avocent | ( AVCT | Quote | Chart | News | PowerRating) |
33.32 | Increased volume breakdown out of pullback from lows | 450 | 363 |
| Symantec | ( SYMC | Quote | Chart | News | PowerRating) |
44.33 | One month closing low on increased, above-average trade | 4,974 | 5,366 |
Institutional Longs and Institutional Shorts.
The following stocks are selected from the Nasdaq, S&P 500 & 600 Indices,
and HOLDRs, and are based on a combination of daily and intraday analysis.
Institutional Longs
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Merck | ( MRK | Quote | Chart | News | PowerRating) |
48.40 | 6,152 | 7,278 |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
68.05 | 9,209 | 8,067 |
| Microchip | ( MCHP | Quote | Chart | News | PowerRating) |
31.67 | 3,012 | 1,694 |
Institutional Shorts
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Nextel | ( NXTL | Quote | Chart | News | PowerRating) |
23.17 | 13,354 | 13,501 |
| Semiconductor HOLDRs | ( SMH | Quote | Chart | News | PowerRating) |
38.45 | 19,419 | 12,501 |
| Halliburton | ( HAL | Quote | Chart | News | PowerRating) |
29.20 | 4,100 | 3,151 |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
55.80 | 5,009 | 4,878 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler