Wednesday’s Top Stocks
Fresh highs in both the leading semiconductor sector, as well as the broader
Nasdaq Composite, were the technical highlights in Tuesday’s trade for our bovine
friends. Unfortunately, most of these gains were miniscule, barely breaching
prior levels–before pulling back in dull trade, most likely not conducive to
fresh buying at current levels. It might have been dull, but don’t let the low
volatility lull you to sleep like Sarah McSomething’s music, courtesy of our
friends on CNBC. Nope, with the price performance mixed between down .58%, to
a ever-so-slight fractional gain of .09% on heavier, above-average trade in
the Naz, the siren song of complacency is nowhere to be found in these parts,
as I don’t mind ‘mooving’ out from the narrow canyons of Wall Street when I
sense a stampede of another sort might be close at hand.
Call me the cautious bull, but I just don’t see the high-probability trade
in getting in at these levels. Daily patterns within established resistance
zones in many of our index friends make me want to check my tail, rather than
sharpen my horns. There’s no problem with maintaining some longs within the
market’s ‘confirmed rally’, but personally speaking, I prefer to be testing
longs in the market within the ebbs, or pullbacks of the market’s ever present
cycle. That means buying the high-probability plays on successful tests of supports,
i.e., 8 days ago. Wasn’t it The Beatles that said 8 days a week I love you?
Well, 8 days into the rally, and personally I’m feeling a little bit less love
for our very dear ETFs. Actually, ‘cautious bull’ started pulling in the horns
a couple days ago when it comes to bullish predisposition, but that’s alright–cause’
the one thing that I’ll never ‘steer’ clear of is disciplined, consistent daytrading.
‘Moo’…and then some booo in today’s session. It was a day of some giving,
as well as a day of some taking. If I could figure this type of day out beforehand,
it would be very nice. But, since all I’ve got are my lists of stocks with potential
high-probability triggers, the reality of it is this: Within those days where
the market decides to chop around, rather than take us on an exciting ride up
and down the market’s typically wavy gravy cycle of fun–the best thing we can
do for ourselves is paddle in early when the conditions are less-than-ideal,
and wax up the equipment early, in anticipation of a better ride in tomorrow’s
session.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
16.56 | up .01 | cvr 2 and 6 sell | 6% below | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.77 | up .35 | none | 2% below | Not At Extreme |
Hottest Sectors : NA
Weakest Sectors :Â Pharmaceuticals
(
PPH |
Quote |
Chart |
News |
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 |
| Comtech Telecommunications | ( CMTL | Quote | Chart | News | PowerRating) |
31.99 | Top of range consolidation on daily reversal bar from 3 bar pullback |
428 | 440 |
| Websense | ( WBSN | Quote | Chart | News | PowerRating) |
23.84 | Top of range close on second day of inside consolidation activity, slightly below weekly pattern b/o levels, on heavy volume |
390 | 717 |
| Wireless Facilities | ( WFII | Quote | Chart | News | PowerRating) |
18.39 | Hi volume hammer close, inside day after 52-week b/o | 717 | 3,735 |
| Sharper Image | ( SHRP | Quote | Chart | News | PowerRating) |
29.80 | High volume b/o of 3 day contraction w/in weekly high level base |
288 | 609 |
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 |
| NA | NA | NA | NA | NA | NA |
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 |
| Citigroup | ( C | Quote | Chart | News | PowerRating) |
48.32 | 12,209 | 12,284 |
| BEA Systems | ( BEAS | Quote | Chart | News | PowerRating) |
14.37 | 7,923 | 7,583 |
| Tyco | ( TYC | Quote | Chart | News | PowerRating) |
22.50 | 9,463 | 36,182 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
26.06 | 56,086 | 83,826 |
| General Electric | ( GE | Quote | Chart | News | PowerRating) |
28.66 | 19,030 | 17,460 |
| Merck | ( MRK | Quote | Chart | News | PowerRating) |
43.79 | 7,207 | 10,129 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler