Wednesday’s Top Stocks
Sometimes it all seems to come together. Take today for instance. After Monday’s
push higher and a move that delivered plenty of intraday opportunity outside
of the indices themselves–Tuesday was officially a grind, where there was a
lot of work and very little reward at the end of the day. So, in this little
corner of the world it seems totally appropriate that for all of my personal
labor, today I too will see a little bit less reward–as this guy has to go
see the tax man about Uncle Sam’s cut. Yuck, and double yuck if you stuck it
out for today’s decreased, below-average consolidation. Well, it wasn’t all
bad as the S&P 500 and Nasdaq Composite finished up a respective .35% to
.40%–and speaking personally, the intraday action still sounds a heck of a
lot better than what I have in store, come after hours.
No yahoo for today’s action, but it does set up some very interesting possibilities.
With today’s move in the broader indices into what most technicians will agree,
is a zone of resistance–tomorrow could provide some excellent shorting opportunities.
But, in this cautious bull’s eyes it’s not that simple as tomorrow brings forth the first official day
that Mr. Bill and company look for the coveted Follow-Thru-Day or FTD–wherein
one of the indices (my preference is for the Naz) closes up 1% or more on increased
trade (and above-average is definitely welcome). I’ll be frank, no actually
I’ll be Chris–and say that with my focus on growth issues and some solid-looking
weekly bases coming together quite rapidly, I’m ready for some more upside potential.
But, if The Stones are correct, and the market doesn’t deliver the goods–this
is, fertile ground for shorts to be executed against technical resistance. Hmm??
It can definitely make you think about how things might play out in the coming
days–but the one thing that requires no thought whatsoever, is that it’s always
best to play out that day’s scenario using 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) |
15.99 | up .03 | cvr 3 sell | 14% below | at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
23.10 | down .06 | na | 7% below | not at extreme |
Hottest Sectors : Oil Services
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OIH |
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PowerRating)
Weakest Sectors : Pharmaceuticals
(
PPH |
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PowerRating)
Wednesday’s stocks to watch:
Technical Strength.
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 |
| LifeCell | ( LIFC | Quote | Chart | News | PowerRating) |
8.09 | Top of range close on increased, above-average volume on b/o of one month base |
137 | 518 |
| Aladdin | ( ALDN | Quote | Chart | News | PowerRating) |
19.78 | 8-Week base b/o, closing highs of day on increased, above-average trade |
211 | 1,923 |
| XM Satellite | ( XMSR | Quote | Chart | News | PowerRating) |
28.29 | Top of range consolidation on a daily chart handle b/o | 7,012 | 3,830 |
Technical Weakness.
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 |
| Whole Foods | ( WFMI | Quote | Chart | News | PowerRating) |
72.86 | bottom of range consolidation on increased, above average volume breakdown of key daily supports |
681 | 1,349 |
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 |
| Career Education | ( CECO | Quote | Chart | News | PowerRating) |
56.83 | Inside daily doji consolidation top, after 5-day run up to fresh 52-week highs |
1,997 | 1,707 |
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 |
| Capital One | ( COF | Quote | Chart | News | PowerRating) |
75.78 | 2,224 | 3,206 |
| Dell | ( DELL | Quote | Chart | News | PowerRating) |
33.96 | 17,549 | 11,235 |
| National Semiconductor | ( NSM | Quote | Chart | News | PowerRating) |
44.43 | 3,984 | 4,297 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Johnson & Johnson | ( JNJ | Quote | Chart | News | PowerRating) |
50.42 | 7,296 | 5,593 |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
59.44 | 4,597 | 3,529 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler