Wednesday’s Top Stocks
Well institutional investors finally seemed to make up their minds in the last
90 minutes of trade. Apparently all the ‘mixing it up’ of the prior two sessions
was so they could ‘lay it on thick’, as selling pressure overtook the market
after Alan & Co. mumbled something about interest rates. Another set of
overall strong corporate earnings were quickly dismissed, and a day which had
been in favor of the bulls quickly turned tail–finishing down between 1.56%
to 2.06% on heavier, above-average trade.
The vote is in for intermediate-term growth traders, as today more or less–and
probably more–was the final straw that broke the bull’s back (well he’s in
serious traction at the very least). In the last seven sessions there have been
three qualified days of hard distribution in the Nasdaq, and just as important–most
growth issues have moved handily away from their respective triggers, and at
a minimum, moved deeper into their weekly bases. Today just solidified what
we’ve been bracing for since late last week as the first signs were already
looking rather ominous for growth issues. There was Yahoo! of course, but there’s
been very little of ‘it’, ever since. With today’s trade, we saw the poster
child for growth stock momentum, Taser (TASR), get ‘zapped’ by investors who
were obviously expecting a little something more powerful. Oh well, we’ll see
what tomorrow brings in–all I know is that I’d rather do it with 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) |
16.51 | up 1.28 | cvr 6 sell | 4% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
23.07 | up 1.67 | cvn 1 sell | 5% above | not at extreme |
Hottest Sectors : Telecom
(
TTH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
Wednesday’s stocks to watch:
Technical Strength.
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 |
| Dendrite | ( DRTE | Quote | Chart | News | PowerRating) |
18.12 | High volume b/o of weekly base, closing 1% thru pivot | 223 | 996 |
| Sigmatel | ( SGTL | Quote | Chart | News | PowerRating) |
24.95 | High volume price bar, closing high of day thru prior daily resistance technical levels |
329 | 995 |
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 Strength | Average Volume 000’s | Today’s Volume |
| Advanced Fibre Communications | ( AFCI | Quote | Chart | News | PowerRating) |
20.86 | High volume gravestone doji against MA resistance | 2,020 | 2,314 |
| Echostar | ( DISH | Quote | Chart | News | PowerRating) |
32.83 | Engulfing bar reversing against resistance, closing low of day on increased volume |
2,959 | 2,119 |
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 |
| Genentech | ( DNA | Quote | Chart | News | PowerRating) |
114.60 | 2,652 | 3,694 |
| General Motors | ( GM | Quote | Chart | News | PowerRating) |
47.77 | 5,376 | 19,960 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Halliburton | ( HAL | Quote | Chart | News | PowerRating) |
29.94 | 4,372 | 2,663 |
| Home Depot | ( HD | Quote | Chart | News | PowerRating) |
35.65 | 7,380 | 4,912 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler