Wednesday’s Top Stocks

Something was stirring today down in the canyons of Wall Street, and it wasn’t
a mouse.
In today’s session investors did an about face, doing the proverbial
‘Land of Forgotten Toys’ buying bit, scooping up technology issues that had
recently been neglected…but obviously not totally forgotten, as the Naz finished
up a solid 1%. And so it went, as the recently knighted Dow Industrials
which has shined so brilliantly, as evidenced by the Diamonds, ended down a
fractional .10%, and somewhere in-between–to fill one’s stocking with, was
the Spyder, ‘netting’ a very slight .05% gain on the day. Volume was much lighter,
and below-average as we go in to tomorrow’s abbreviated session, so I’m sure
this will be prove to be interesting to somebody, somewhere–just not here,
’cause I’m taking the holiday cue and bidding holiday tidings to all bulls and
bears out there while I anxiously await Santa and NASDAQ 5000.

So today, after all the concern of the lagging semiconductors and technology
in general, it was the Naz’ turn to flex its muscle, while the Dow and S&P
rested…typical action truth be told. As I outlined in my weekly report for
Intermediate Term traders–within the market’s ‘confirmed rally’ I would expect
the next leg–if we can do it, to be led once again by technology issues. If it
happens, it will probably do so while you’re still sipping on mugs of eggnog
during the holiday season. A two to three percentage point retracement in the
‘old school’ stuff would be nice, and ultimately is needed–but just stay
prepared for the growth triggers as they happen in this type situation. Off my
own list which I keep for our subscribers we’ve already seen a couple of quick
beauties the past two days (BLTI and NFLX), with others not so far behind. But,
just in case you would rather play games with friends and family over the
holidays, and not concern yourself with such speculation–take some
well-deserved time off from our usual brand of disciplined, consistent
daytrading–’cause the market will still be there when you get back from the
holidays. Happy holidays everyone.

Volatility Readings:

Volatility Index Close Net Change Signals/Direction % Above/Below 10 Day Moving Average Significance
VXO
(
$VXO |
Quote |
Chart |
News |
PowerRating)
15.57 down .62 cvr 1 buy 4% below not at extreme
VXN
(
$VXN |
Quote |
Chart |
News |
PowerRating)
23.47 down 1.28 none 9% below not at extreme

Hottest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
and Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)

Weakest Sectors : Retail
(
RTH |
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
Netflix
(
NFLX |
Quote |
Chart |
News |
PowerRating)
54.78 Mid level ‘right side of base’ b/o within weekly high level
consolidation, closing top of range on increased, above-average volume
2,011 2,073
NVIDIA
(
NVDA |
Quote |
Chart |
News |
PowerRating)
21.99 Top of range consolidation on increased volume test of
weekly consolidation b/o levels
6,270 5,972
Protein Design Labs
(
PDLI |
Quote |
Chart |
News |
PowerRating)
17.76 Top of range consolidation at daily chart handle b/o levels
on increased, above average volume
1,943 2,839
Mesa
(
MESA |
Quote |
Chart |
News |
PowerRating)
13.85 Top of range consolidation on increased, above average
volume out of 4-month high level base b/o
1,133 4,321

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
KVH Industries
(
KVHI |
Quote |
Chart |
News |
PowerRating)
26.44 Bottom of range consolidation on increased, above average
volume on technical b/d of price and MA support
311 508
Krispy Kreme
(
KKD |
Quote |
Chart |
News |
PowerRating)
36.99 Low RS issue, trend resumption day, closing bottom of range
on increased, above-average volume
881 1,027
General Mills
(
GIS |
Quote |
Chart |
News |
PowerRating)
44.35 Low of day closing price on increased, above-average volume,
breaking 50-day ema and price supports
1,540 2,441

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
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating)
53.45 9,379 10,060
Amazon
(
AMZN |
Quote |
Chart |
News |
PowerRating)
52.48 10,938 10,988
Nextel
(
NXTL |
Quote |
Chart |
News |
PowerRating)
27 14,690 12,494

Institutional Laggards.

Name Symbol Price Average Volume 000’s Today’s Volume
Eli Lilly
(
LLY |
Quote |
Chart |
News |
PowerRating)
70.52 3,633 4,758
Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating)
34.60 7,886 6,725

Best of luck to everyone. Please use protective stops on all trades.

Chris Tyler