Wednesday’s Top Stocks
I seriously wish I was more bullish, but the ‘cautious bull’ in me is slow
to ‘moove’ right now. That’s alright though, because in this continuing saga
of ‘flyers and plungers,’ I’d rather ‘keep the hide on the side,’ and be content
with watching the action while others take the breakout–or was that breakdown?
Well, all said and done, there was some price continuity in the form of our
three amigos showing gains of .25% to .99% on the session. Volume was stronger
and above-average in the S&P500 cash index, while the recently lagging Nasdaq
finished in the doghouse once more, third in price percentage gains, and just
managed to squeeze out volume comparable to its 50-day MA…’Yahoo??’
Hmmm, depending on your ‘pleasure,’ today offered a little bit of something
for everyone, as bulls, bears, and pigs were all seen on the market landscape
in Tuesday’s trade. Unfortunately, some of that which was offered was not exactly
consistent with the usual results associated with high-probability trading.
We had winners and losers on individual calls intraday. Nothing unusual about
that–but with the disparity between the different indices, and growth stocks
doing the yo-yo thing, I would sum up most of today’s trade as erratic.
Most growth stock issues continue to dig deeper into weekly bases, and some
recent favorites are breaking down very quickly, to the dismay of Mr. Bill &
Co. If you own the Dow Jones Industrials and still believe in Santa, all is
well–but, if you believe in the tea leaves, it still looks like we have some
time before ‘they’ truly become digestible once again. Until that time, we can
always stick to the same ol’ plan of disciplined, consistent daytrading tactics.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
15.69 | down 1.22 | none | 5% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.94 | down 1.13 | none | 4% below | not at extreme |
Hottest Sectors : Software
(
SWH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Gold/Silver (XAU) and Internet
(
HHH |
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 |
| Zymogenetics | ( ZGEN | Quote | Chart | News | PowerRating) |
15.47 | Wide range bullish daily bar w/volume surge, closing top of range |
154 | 379 |
| Graftech | ( GTI | Quote | Chart | News | PowerRating) |
12.73 | Top of range consolidation on above average volume, breaking above 1.5 month ascending triangle resistance |
870 | 1,219 |
| Tech Data | ( TECD | Quote | Chart | News | PowerRating) |
37.47 | Top of range consolidation w/in established daily chart congestion pattern, on increased, above average volume |
492 | 1,799 |
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 |
| Avid Technology | ( AVID | Quote | Chart | News | PowerRating) |
45.90 | Bottom of range consolidation on relative volume, breaking below 30-min extended chart price supports |
655 | 570 |
| Comtech Telecommunications | ( CMTL | Quote | Chart | News | PowerRating) |
29.30 | Wide range bearish bar thru key MA supports, on increased, above-average volume, closing in bottom of range consolidation |
439 | 974 |
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 |
| Amgen | ( AMGN | Quote | Chart | News | PowerRating) |
60.38 | 10,316 | 12,867 |
| General Dynamics | ( GD | Quote | Chart | News | PowerRating) |
85.67 | 916 | 863 |
| Oracle | ( ORCL | Quote | Chart | News | PowerRating) |
13.12 | 44,985 | 94,862 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Dell | ( DELL | Quote | Chart | News | PowerRating) |
32.65 | 15,382 | 18,663 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
40.70 | 12,873 | 14,784 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler