Wednesday’s Top Stocks
Well, Texas Instruments (TXN) might not have been the sheriff with the shiny
star for the entire session, but its high-volume hammer close might give it
the title of the Rhinestone Cowboy. The Texan’s performance was at least in
part responsible for a classic test of supports in the Nasdaq Composite, as
well as the semiconductor sector’s (SMH) own high-volume reversal pattern. As
for the S&P 500, investors finally found it necessary to actually do some
profit-taking on increased selling pressure.. Good job ‘smart money’, right
into the 50-day SMA…’oh yahoo!!!’
We’ll see what tomorrow brings, but personally speaking, I like the prospects
for playable reversal longs ‘way down here’…but still within the confines
of a normal market correction (at least in the Nasdaq). I especially like the
prospects for this type of action in the Nasdaq and the semis. That’s just little ol’ me
though, and I can’t speak for anyone else, especially if they talking about
some Elliott Wave thingy. I guess I’ll just have to wait along with all the
smart money to see if the reversal call works out. Of course I like it a whole
bunch when I’m right, but just in case, I like using stops more than being disastrously
wrong–and in the end I like sticking with disciplined, consistent daytrading
tactics even more than anything else, when it comes to world’s greatest game.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
6.37 | up 1.04 | cvr 3 buy | 8% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
24.70 | up .62 | na | 7% above | not at extreme |
Hottest Sectors : Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Oil Services
(
OIH |
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 |
| Kroll | ( KROL | Quote | Chart | News | PowerRating) |
25.79 | Increased, above-average (IAA) Volume thrust bar thru daily resistance |
543 | 869 |
| Draxis Health | ( DRAX | Quote | Chart | News | PowerRating) |
5.50 | Top of range close on IAA Volume b/o attempt of high level base |
363 | 1,842 |
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 |
| Agilent | ( A | Quote | Chart | News | PowerRating) |
32.82 | Bottom of range close on IAA Volume, breaking daily supports | 3,259 | 4,255 |
| Garmin | ( GRMN | Quote | Chart | News | PowerRating) |
42.36 | Continuation bar on above average volume, thru daily supports | 641 | 988 |
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 |
| Semiconductor HOLDRs | ( SMH | Quote | Chart | News | PowerRating) |
39.84 | High volume hammer bar, thru daily supports to reverse | 12,933 | 26,328 |
| NVE Corp | ( NVEC | Quote | Chart | News | PowerRating) |
37.20 | Potential 1,2,3 daily pattern forming against daily supports | 728 | 490 |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| Petroleum Develop. | ( PETD | Quote | Chart | News | PowerRating) |
30.77 | Topping bar on IAA Volume, after establishing 52-week high out of pattern pullback |
550 | 994 |
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 |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
70.09 | 7,170 | 8,580 |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
39.20 | 7,463 | 5,852 |
| Maxim | ( MXIM | Quote | Chart | News | PowerRating) |
46.76 | 5,426 | 12,894 |
| Dell | ( DELL | Quote | Chart | News | PowerRating) |
31.71 | 17,264 | 25,241 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Caterpillar | ( CAT | Quote | Chart | News | PowerRating) |
76.40 | 2,530 | 2,550 |
| Flextronics | ( FLEX | Quote | Chart | News | PowerRating) |
16.83 | 7,901 | 11,095 |
| General Motors | ( GM | Quote | Chart | News | PowerRating) |
46.78 | 6,166 | 5,834 |
| Starbucks | ( SBUX | Quote | Chart | News | PowerRating) |
37.53 | 3,060 | 2,808 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler