Wednesday’s Top Stocks
Some money management skills were put to use for the first time in a long while
in our index friends. Apparently though, today’s pullback was a bit too much
for some of Wall Street’s ‘smart money’, ’cause in the final hour of trade,
and when the big players like to do their thing–it was all about scooping up
the carnage, and finding some ‘Diamonds of value.’ Intraday, the bottom line
was that the major indices were down more than a full percentage point, with
some of them actually ‘taking out’ consolidation supports before reversing to
close at the 50% intraday retracement mark, and down between .55% and .75% on
the session. Hmmm, 50% mark–makes me wonder, is the glass half full or half
empty?
Oh baby–what a pullback!! Not!! ‘Cautious Bull’ is still just sitting on thumbs…maybe
I’ll change the name if this keeps up for much longer. If that’s as good as
it gets for pullbacks, then I’m probably in trouble–’cause I am increasingly
finding the action troubling. Oh well, it’s not the first time, nor will it
be the last–but at least I know how to stay out of trouble when the madness
of crowds is too much for my little padded corner of the universe–wrapping
myself up in a straight jacket, and throwing out the key?? Heck no!! I just
keep to the stuff that still gives me a little bit of sanity, namely disciplined,
consistent daytrading
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
16.87 | up .62 | none | 3.5% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
23.06 | up .50 | none | 0% | not at extreme |
Hottest Sectors : Retail
(
RTH |
Quote |
Chart |
News |
PowerRating) and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
and Gold/Silver (XAU)
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 |
| Scientific Atlanta | ( SFA | Quote | Chart | News | PowerRating) |
33.51 | top of range consolidation on ‘right side of base’ continuation day out of 2-day inside consolidation, w/ increased above-average volume |
1,896 | 2,294 |
| Magma Design | ( LAVA | Quote | Chart | News | PowerRating) |
26.14 | High volume increased follow-thru out of 3-day consolidation, fresh 52-week highs |
704 | 1,288 |
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 |
| Able Labs | ( ABRX | Quote | Chart | News | PowerRating) |
15.66 | Bottom of range consolidation on daily b/d w/increased, above-average volume |
267 | 746 |
| Inco | ( N | Quote | Chart | News | PowerRating) |
37.68 | Increased, above-average volume b/d of 20-day ema, and recent price supports |
1,700 | 2,309 |
^next^
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 |
| Sina.com | ( SINA | Quote | Chart | News | PowerRating) |
42.97 | 8,063 | 8,553 |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
65.55 | 8,582 | 8,927 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Xilinx | ( XLNX | Quote | Chart | News | PowerRating) |
40.01 | 6,621 | 14,435 |
| General Electric | ( GE | Quote | Chart | News | PowerRating) |
31.61 | 20,666 | 26,710 |
Best of luck to everyone. Please use protective stops on all trades.