Wednesday’s Top Stocks
Tuesday offered something different for index holders–a rare underperformance
by the S&P 500, relative to the Nasdaq Composite. Extreme ‘profit-taking’
in the S&P took the broader market index down a whopping .18%. That was
a joke, folks, but in one cautious bull’s opinion so was the slightly increased
but still below-average volume. The question of the day is: ‘How can one actually
book real profits if while the opportunity is still available, investors opt
to sit and hold their collective breaths and weighted portfolios?’ Well, you
can try to figure out that Harry Houdini trick while the Nasdaq tries to do
a trick of its own–hold daily technical supports. For the session, the Naz
was off fractionally, down .10% on increased, above-average trade. To some traders
that might sound like a churn of sorts, especially given the doji candlestick
close, but for this cautious bull, it means that it’s almost time to put on
the hide–not run and hide.
That’s right, we might be setting up in the Nasdaq for a solid reversal play,
’cause my charts show lots of horizontal lines between 1983 and 1998. In case
you don’t read the tea leaves or haven’t done the work yourself, or believe
in something altogether different (maybe your broker, for instance)–the daily
on the Naz shows a solid zone for technical support based on Fibonacci, price,
and Moving Average analysis. These lows if they hold, mind you, are still within
the confines of a normal market correction (10% or less).
Now, at this point, the normal corrective activity might not look so pretty
if you’ve been holding on for the next top, but that’s besides the point–I
just call it like I see it. Below that zone 1953 – 1968 is the next key support
area. If price were to get there, our very nervous bovine friend would be down
9.3% from its 2153 highs….almost perfect. I say ‘almost’, because it doesn’t
quite reach the 10% benchmark–but who knows, maybe it will? Seriously though,
if you want perfection, look within yourself and your own trading by applying
consistent, disciplined daytrading tactics.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
15.75 | down .18 | na | 0% | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
24.78 | up .40 | na | 3% above | not at extreme |
Hottest Sectors : Oil Services
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OIH |
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PowerRating)
Weakest Sectors : Internet
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HHH |
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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 |
| Aeropostale | ( ARO | Quote | Chart | News | PowerRating) |
34.41 | Engulfing bullish bar finishing top of range on increased volume |
731 | 664 |
| Starbucks | ( SBUX | Quote | Chart | News | PowerRating) |
38.85 | Top of range consolidation on increased, above-average (IAA) trade, testing daily consolidation highs |
3,867 | 4,822 |
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 |
| Schnizter | ( SCHN | Quote | Chart | News | PowerRating) |
44.21 | Low RS stock finishing in doji daily, continuation of trend lower |
1,234 | 774 |
| Emulex | ( ELX | Quote | Chart | News | PowerRating) |
23.10 | Bottom of range close on above average volume | 1,789 | 3,518 |
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 |
| Eli Lilly | ( LLY | Quote | Chart | News | PowerRating) |
72.37 | 3,708 | 2,664 |
| Home Depot | ( HD | Quote | Chart | News | PowerRating) |
35.99 | 8,379 | 11,988 |
| Juniper | ( JNPR | Quote | Chart | News | PowerRating) |
24.75 | 14,567 | 20,512 |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
41.86 | 4,032 | 3,886 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Caterpillar | ( CAT | Quote | Chart | News | PowerRating) |
76.70 | 2,474 | 1,625 |
| Dell | ( DELL | Quote | Chart | News | PowerRating) |
32.83 | 16,777 | 16,166 |
| Freddie Mac | ( FRE | Quote | Chart | News | PowerRating) |
62.12 | 2,735 | 5,575 |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
67.19 | 7,558 | 7,074 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler