Wednesday’s Top Stocks
It was yet a third day in a row of ruthless consolidation-type action in which
bears and bulls made very little headway. For the session all three ETFs finished
off fractionally in the red, down between .10% to .14%. It gets better though,
as the closing figures mask the triple ‘inside day’ action that was established
in today’s trade. Actually, it gets even better than that, believe it or not,
’cause the volume also matched the nasty intraday price action by coming in
yet again–lower, below-average, and approaching the lightest levels of the
year. No ‘Yahoo’ here…just a ‘yoo-hoo’, and ‘where’s all the smart money run
off too?’
No more good stories being spun by Wall Street, as we consolidate for a third
consecutive day off our first technical pullback seen in more than six weeks.
Amazing how it all works, isn’t it? No more election year spin, no more institutional
and 401k monies being poured in the tenth month of our ongoing confirmed rally,
and not so sadly–no more raging bull. Somebody will mourn him, but most certainly
not Wall Street. The game goes on, but without this cautious bull’s full attention…at
least not until we actually confirm the technical lows by moving somewhere other
than the zig and zag of the last three sessions. Oh well, until that day and
always–we’ll just continue to bob and weave our own little path thru the market’s
zigs and zags with 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) |
16.94 | up .07 | cvr 5 buy | 7% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
26.16 | up .35 | cvn 3, 5 buy | 12% above | at extreme |
Hottest Sectors : Software
(
SWH |
Quote |
Chart |
News |
PowerRating)and Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) and Telecom
(
TTH |
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 |
| Avocent | ( AVCT | Quote | Chart | News | PowerRating) |
40.65 | High volume second b/o of weekly trading range to close in top of range consolidation |
377 | 2,220 |
| AdvancePCS | ( ADVP | Quote | Chart | News | PowerRating) |
59.96 | Top of range close on increased, above-average volume(IAA) out of weekly pattern b/o |
1,293 |
21,588 |
| Omnicell | ( OMCL | Quote | Chart | News | PowerRating) |
19.80 | Increased, above-average volume b/o of daily ascending triangle pattern |
234 | 914 |
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 |
| Power Integrations | ( POWI | Quote | Chart | News | PowerRating) |
28.27 | Bottom of range consolidation on IAA volume to break daily consolidation supports in Low RS issue |
635 | 899 |
| Inco | ( N | Quote | Chart | News | PowerRating) |
35.71 | Bottom of range consolidation on IAA volume failure below both 50-Day MAs |
1,811 | 2,911 |
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 |
| Amazon | ( AMZN | Quote | Chart | News | PowerRating) |
44.94 | Bottom of range close on increased, volume surge test of technical support zone consisting of both 200-Day MAs and Fibonacci analysis |
9,736 | 27,110 |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| TASER | ( TASR | Quote | Chart | News | PowerRating) |
127.21 | Engulfing bearish bar on record volume after establishing 52-week highs–to close at bottom of range |
738 | 4,390 |
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 |
| Staples | ( SPLS | Quote | Chart | News | PowerRating) |
26.81 | 3,245 | 4,638 |
| 3M | ( MMM | Quote | Chart | News | PowerRating) |
78.90 | 2,842 | 3,752 |
| Symantec | ( SYMC | Quote | Chart | News | PowerRating) |
39.65 | 3,767 | 3,440 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
44.53 | 4,843 | 9,096 |
Best of luck to everyone. Please use protective stops on all trades.