Wednesday’s Top Stocks
Nope, I didn’t see today’s trend-day down coming…at all. This was particularly
true because I hate reading into the whims or vagaries of The Street. Today’s
excuse for sending the two major averages down between 1.35% to 1.70% was due
to investors’ fears of a faster and tighter Fed policy, resulting in today’s
‘revaluation’ of stock prices. All that I can say is that you have to love it,
as the very reasoning used off the Retail Sales report could have just as easily
been used to drive stock prices higher. Not that today’s show had a pleasant
ending, but considering the lackluster audience participation…I don’t think
we’ll be seeing the same picture come tomorrow, and besides, just like the ‘smart
money’, we can always reevaluate the situation.
This cautious bull is always willing to admit the error of his ways, so while
today could have stung if any breakouts were traded (and only one came across
my radar today…no ‘Yahoo!!’ for ABAX today)–I don’t personally feel betrayed
by today’s action. Yes, quite possibly some existing positions saw some red
today. And yes, maybe I did pick the wrong stock to mock in yesterday’s column–Mace
Security (MACE), but this cautious bull doesn’t feel like he’s been put through
the ‘rinse cycle’ either. In fact, most of the growth stocks that I monitor
are still consolidating just fine, on lighter volume–while the market looks
to test technical zone supports based on today’s range lows, and that deserves
a ‘Yahoo!!’ while we continue to scour the market landscape using our disciplined,
consistent brand of daytrading.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
17.50 | up 2.06 | na | 11% above | at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
22.30 | up 1.93 | cvn 2, 6 sell | 1% above | not at extreme |
Hottest Sectors : NA
Weakest Sectors : Internet
(
HHH |
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 |
| Axcan Pharma | ( AXCA | Quote | Chart | News | PowerRating) |
17.77 | Top of range consolidation on volume surge, daily hammer test of range lows |
299 | 851 |
| Biolase Technology | ( BLTI | Quote | Chart | News | PowerRating) |
18.79 | End of day price and volume surge, to test daily range highs within existing base |
754 | 753 |
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) |
29.76 | Bottom of range consolidation on confirmation bar of daily double top pattern |
4,510 | 2,896 |
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 |
| Netease.com | ( NTES | Quote | Chart | News | PowerRating) |
55 | 2,325 | 1,053 |
| Adobe | ( ADBE | Quote | Chart | News | PowerRating) |
42.30 | 3,670 | 2,500 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
58.61 | 4,764 | 8,310 |
| Johnson & Johnson | ( JNJ | Quote | Chart | News | PowerRating) |
51.39 | 7,374 | 10,689 |
| Lexmark | ( LXK | Quote | Chart | News | PowerRating) |
95.79 | 1,086 | 1,242 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler