Wednesday’s Top Stocks
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Will the ‘Cisco Kid’
(CSCO) get the market to quit horsing around? A better-than-expected ISM number couldn’t finish the job of continuing on yesterday’s reversal from lows, as further rumors to support the light volume run up were nowhere to be found in Tuesday’s trade. Personally, I think the market would rather see Han Solo coming to the rescue, but I’m sure worried investors will take what they can get at this point in time. With today’s reversal of fortune, the market showed that it’s just as easy to fall on its own weight. The ETFs finished down between 2% and 4% on below average volume once more. Decliners though, did weigh on advancing issues by a margin of 2:1 as market breadth joined hands with price as both finished their days looking in vain for some kind of support.Â
So here we are, on the technical edge of a mighty precipice. Both the Diamonds and Q’s broke below their respective 50-Day EMAs for the first time in over three months, and the recent laggard of our three amigos, the Spyders, are also testing the ominous July 1 lows as of the close of trade. ‘Oooh, scary.’ With the fear indicators poking their heads up in the past two sessions, investors just might have their work cut out for themselves in the coming hours. For the rest of you, those who choose to navigate the markets ‘choppy’ waters by daytrading, tomorrow should be another day with which to appreciate the advantages of consistent, disciplined intraday trade.
We can either hope, or we can prepare for tomorrow to be a great day. Some days will inevitably be better than others, but by keeping to our list of High and Low RS issues and taking the set ups as they trigger, we won’t have to place our bets on whether or not the ‘Cisco Kid’ will return to the spotlight or not. Instead, whether or not the ‘greying superstar’ rises to the occasion, we can still take our own consistent trip to the bank each and every day.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
24.11 | up 1.46 | CVR 3,6 Buy | 12% above | At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
34.27 | up 1.58 | none | 9% above | Not At Extreme |
Hottest Sectors :Â Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating) and
Gold/Silver (XAU)
Weakest Sectors : Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating) and
Health/Medical (HMO)Â
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 |
| Henry Schein | ( HSIC | Quote | Chart | News | PowerRating) |
59.32 | Top of range close on volume, testing prior 52-week highs |
343k | 1,030m |
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 |
| Taro Pharmaceuticals | ( TARO | Quote | Chart | News | PowerRating) |
50.70 | low level consolidation on volume, continuation of technical b/d of price supports and prior trend up |
423k | 827k |
| Burlington Northern | ( BNI | Quote | Chart | News | PowerRating) |
27.12 | Bottom of range consolidation, heavy volume on technical break of daily supports |
1,250m | 2,027m |
| Expedia | ( EXPE | Quote | Chart | News | PowerRating) |
70.48 | Technical break of the 50-Day EMA and price supports on heavy volume |
1,977m | 4,922m |
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 |
class=890430920-15102001>
Short
Reversals
Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
class=890430920-15102001>
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 |
| National Semiconductor | ( NSM | Quote | Chart | News | PowerRating) |
22.53 | 3,350m | 5,093m |
| BEA Systems | ( BEAS | Quote | Chart | News | PowerRating) |
13.11 | 10,132m | 9,870m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
42.06 | 5,545m | 5,093m |
| Biotech HOLDRs | ( BBH | Quote | Chart | News | PowerRating) |
126.65 | 1,374m | 1,218m |
| Best Buy | ( BBY | Quote | Chart | News | PowerRating) |
40.18 | 3,568m | 4,568m |
| Johnson & Johnson | ( JNJ | Quote | Chart | News | PowerRating) |
49.78 | 9,090m | 6,594m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler