Wednesday’s Top Stocks
I was ‘stunned’, I’ll admit it. No, not from the market’s pullback after an
eight-day run. Nope, ’cause besides an overbought technical condition, we also
hit a ‘Fib’, no not the media this time–the number 8, which is the number of
days that capped off a series of higher highs in the major averages…and that’s
no lie. Rather, I was stunned by the amazing late-day price surge in Taser (TASR)–they
say the product doesn’t permanently harm anyone, but boy, that’s not the case
for those trying to short it. That kind of stuff is definitely not this cautious
bull’s bag, but then again trying to like the market after its recent run, with
nary a pullback, isn’t exactly my bag either. Well, with today’s .20% to .92%
decline in both the S&P 500 and Naz, it’s a little something in the right
direction, and that deserves a welcome ‘yahoo.’
So, was today’s gap lower really due to the news out of Nokia (NOK)? Or did
an overbought market as measured by time, price, and sentiment really just need
an excuse? Personally, I’m always amazed at how these things just seem to come
together–like clockwork, and if there’s markets to trade you can bet that this
will always be the case. Today was a step in the right direction for this cautious
bull, but one day doesn’t qualify as a pullback either. Until there’s further
drama in our ongoing show that’s worthy of technical support, this guy will
just continue to stick with the principles 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) |
14.49 | up .61 | cvr 2, 6 sell | 12% below | at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
22.23 | up 1.12 | cvn 2, 6 sell | 4% below | not at extreme |
Hottest Sectors : Gold/Silver (XAU)
Weakest Sectors : Semiconductors
(
SMH |
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 |
| Netflix | ( NFLX | Quote | Chart | News | PowerRating) |
35.60 | Inside doji w/in daily chart handle consolidation | 2,668 | 1,404 |
| Euronet | ( EEFT | Quote | Chart | News | PowerRating) |
20.76 | increased, above-average cup b/o on daily, finishing top of range |
171 | 1,095 |
| PETsMART | ( PETM | Quote | Chart | News | PowerRating) |
28.41 | increased, above-average b/o of double pivot high w/in weekly high level basing pattern |
1,335 | 1,878 |
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 |
| Halliburton | ( HAL | Quote | Chart | News | PowerRating) |
29.41 | inside bar w/in daily chart symmetrical triangle pattern | 4,547 | 3,012 |
| Intuit | ( INTU | Quote | Chart | News | PowerRating) |
45.23 | Bottom of range consolidation on increased volume, breaking pullback from lows trendline–out of double doji top formation |
2,775 | 1,891 |
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 |
| Lexmark | ( LXK | Quote | Chart | News | PowerRating) |
90.93 | Increased volume b/d of trendline and price supports on extended 60-minute chart |
1,060 | 940 |
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 |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
37.62 | 7,028 | 4,232 |
| Interactive Corp | ( IACI | Quote | Chart | News | PowerRating) |
33.91 | 6,540 | 4,032 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Amgen | ( AMGN | Quote | Chart | News | PowerRating) |
58.75 | 9,226 | 8,077 |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
59.70 | 4,801 | 3,208 |
| Netease.com | ( NTES | Quote | Chart | News | PowerRating) |
53.12 | 2,477 | 1,044 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler