Wednesday’s Top Stocks
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Even though the ETFs spent the majority of the Tuesday’s trade ‘chopping’ around the unchanged mark, the real story was ‘built’ around the market subsectors, such as Housing
(
$HGX.X |
Quote |
Chart |
News |
PowerRating) and the Chinese Internet space. Sorry Charlie, no ticker for that one, but it might only be a matter of time. The well-built homebuilders were pulled down a bit off two better-than-expected reports reflecting continuing sector strength. Apparently, some of Wall Streets handymen were booking profits off the ‘surprising’ reports. In other subsector trade, the fever was running high with names such as China.com
(
CHINA |
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Chart |
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PowerRating) and Pacific Internet
(
PCNTF |
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PowerRating), as traders opened their eyes to broader horizons in these momentum stocks, sending names in this small area, up more than 20% in intraday action.
Stateside, as mentioned, the Spyders
(
SPY |
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PowerRating), NASDAQ100
(
QQQ |
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PowerRating), and the Diamonds
(
DIA |
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Chart |
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PowerRating) traded in fairly narrow ranges for the better part of the day. The good news for all us bulls out there is that two out of three index proxies made fresh relative highs before closing fractionally mixed around the unchanged level, in what is best described as rather lackluster trade. Volume and breadth statistics were also listless, as volume came in below average, and advancers over decliners was negligible at best in our ongoing ‘confirmed rally.’
The action overall has been darned good on a daily basis, as our ‘Big Green Boat’ is doing a fine job of confusing bulls and bears alike. But remember, just because the market is doing its best to keep most passengers left standing on the proverbial dock, if you are on board, don’t fall asleep at the helm. Always stay on course, with predetermined stops, and regardless if our boat turns into the Titanic, or whether it keeps steaming ahead, always remember to bring your life preserver, namely daytrading stocks.
By maintaining our daily list of High and Low RS issues every day, before the ‘bell’ goes off, we’ll be prepared to jump to safety, well ahead of the masses. Waiting for proper continuation setups gives us the thumbs up to climb safely aboard, while classic reversal setups against large masses of resistance, akin to icebergs, give us the opportunity to short the ‘Big Green Boat’, before it once more turns ‘red.’
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
21.77 |
down .47 | None | 4.5% below | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
33.61 | down .18 | None | 2.5% below | Not At Extreme |
Hottest Sectors :Â Pharmaceuticals
(
PPH |
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PowerRating)
and Gold & Silver
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$XAU.X |
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PowerRating)
Weakest Sectors : Oil
Services
(
OIH |
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PowerRating) and Homebuilders
(
$HGX.X |
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News |
PowerRating)
Wednesday’s HELVETICA>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 | Today’s Volume |
| Sina Corp. | ( SINA | Quote | Chart | News | PowerRating) |
18.20 | Pull back from highs to close at intraday price supports after establishing 52-week high ‘test’ on strong volume |
3,563m | 4,319m |
| Artisan Components |
( ARTI | Quote | Chart | News | PowerRating) |
21.51 | 1month closing high, filling in price gap on increasing volume |
544k | 657k |
| Career Education |
( CECO | Quote | Chart | News | PowerRating) |
66.74 | top of range close on high volume for fresh 52-week high |
788k | 1,342m |
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 | Today’s Volume |
| Whole Foods Market | ( WFMI | Quote | Chart | News | PowerRating) |
47.40 | Low RS stock closing at bottom of range, near daily price supports on increasing volume |
1,263m | 1,924m |
| Fair Isaac | ( FIC | Quote | Chart | News | PowerRating) |
51.63 | Pull back off lows to close below daily price supports on volume increase |
383k | 916k |
| Abercrombie & Fitch | ( ANF | Quote | Chart | News | PowerRating) |
26.52 | Reversal bar on Low RS stock to close near price supports on increasing volume |
2,345m | 2,440m |
class=890430920-15102001>
class=890430920-15102001>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.
class=890430920-15102001>Long Reversals class=890430920-15102001>Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Novellus | ( NVLS | Quote | Chart | News | PowerRating) |
37.64 | Follow thru day on increasing volume to close at top of intraday range |
9,975m | 9,558m |
class=890430920-15102001>
Short
Reversals
Closing Basis.
None Today.
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 | Today’s Volume |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
31.32 | 14,518m | 13,482m |
| Nextel | ( NXTL | Quote | Chart | News | PowerRating) |
16.60 | 22,990m | 35,062m |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
48.90 | 5,892m | 7,552m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| IBM | ( IBM | Quote | Chart | News | PowerRating) |
84.30 | 8,338m | 5,850m |
| BJ Services | ( BJS | Quote | Chart | News | PowerRating) |
36.83 | 2,201m | 2,983m |
| Bed Bath & Beyond | ( BBBY | Quote | Chart | News | PowerRating) |
42.05 | 3,139m | 3,467m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler