Wednesday’s Top Stocks
Where’s the ‘mooove?’ Actually, bulls and bears are probably asking themselves
this very question. Today’s trade was marked by a rather narrow trading range,
with a very mixed performance by our Three Amigos. The Diamonds, Spyders, and
the Q’s all showed off their indecisive behavior by closing on both sides of
the fence–from down .37% to up .59% respectively, with the big, bad scary Spyder
caught somewhere in between, as all three closed in ‘doji’ formations on increased
volume.
On the Nasdaq, ‘supposed’ buy side enthusiasm for tech (after the big ol’ Texan
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PowerRating) and Altera surprised investors) came in heavier, but just barely
at the 50-day average benchmark. The S&P cash however, was able to put in
above-average trade for the session. With only slight positive breadth, coming
in at 1.33:1 for advancers over decliners, and most of today’s ‘celebrated’
issues not ‘partying on’ for the entire session, one thing’s for sure…as they
say in Texas, ‘I’m not betting the ranch’ on today’s show.
There was a slight push higher today, before the indecisive doji formation
made its intentions known by the closing bell, but make no bones about it–I’m
not indecisive at all. With volatility levels now at fresh lows, ‘good’ news
not having the same bang for your dollar, but intraday price action still good
for at least a fun one-way trip, and sometimes the return trip home, you can
bet the ranch on where I’ll keep hanging my hat, and it sure the heck ain’t
Texas.
How’d that song go, ‘Deep In The Heart Of Texas?’–Well, the only thing I hold
close to the vest is disciplined, consistent daytrading. Texas Instruments might
have made the headlines, but it was other High and Low RS issues breaking out
of, or down and out of classic patterns and support or resistance levels that
really made the difference for daytraders. Once again, it’s not about the headlines,
it’s all about the bottom-line at the end of day. You might try and make a trip
down south to Texas, but if you’re keeping your eyes peeled throughout the day
for the ‘special ticket’, you just might find yourself in a first class express
seat to Red China…thank you Netease.com
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
17.71 | down .45 | NA | 8% below | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
24.10 | down .68 | cvr 6 sell | 9% below | Not At Extreme |
Hottest Sectors : Gold/Silver (XAU) and Semiconductors
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PowerRating)
Weakest Sectors : Telecom
(
TTH |
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PowerRating) and Retail
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RTH |
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PowerRating)
Wednesday’s 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 000’s | Today’s Volume |
| New Century Financial | ( NCEN | Quote | Chart | News | PowerRating) |
32.72 | 4.5 Month cup w/ hammer bar off 13-day ema supports inside of handle |
833 | 640 |
| NetScreen | ( NSCN | Quote | Chart | News | PowerRating) |
24.70 | Above-average volume increase on thrust bar above daily congestion pattern, to close top of intra range |
2,096 | 1,899 |
| Jabil Circuits | ( JBL | Quote | Chart | News | PowerRating) |
28.81 | 30-Minute chart extended cup and handle on today’s wide range reversal bar with confirming volume |
1,455 | 2,006 |
| Petco | ( PETC | Quote | Chart | News | PowerRating) |
33.22 | ascending triangle daily, off test of supports on volume increase, within 3% of pattern b/o |
413 | 273 |
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 000’s | Today’s Volume |
| Dentsply | ( XRAY | Quote | Chart | News | PowerRating) |
43.04 | Continuation of technical daily b/d below supports on increased volume |
389 | 1,011 |
| Paccar | ( PCAR | Quote | Chart | News | PowerRating) |
76.57 | Above-average volume, closing bottom of range on technical failure at the 13 and 50-day ema’s |
1,027 | 1,270 |
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 |
| Dollar Tree | ( DLTR | Quote | Chart | News | PowerRating) |
37.31 | 1,513 | 2,323 |
| Mercury Interactive | ( MERQ | Quote | Chart | News | PowerRating) |
50.54 | 2,927 | 2,879 |
| Nextel | ( NXTL | Quote | Chart | News | PowerRating) |
22.99 | 17,631 | 23,656 |
| JP Morgan | ( JPM | Quote | Chart | News | PowerRating) |
36.67 | 8,481 | 7,526 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Altera | ( ALTR | Quote | Chart | News | PowerRating) |
18.99 | 8,608 | 10,827 |
| Sohu.com | ( SOHU | Quote | Chart | News | PowerRating) |
32.86 | 4,330 | 9,184 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler