Wednesday’s Top Stocks
The ‘stealth’ rally got caught up on everyone’s radar today, and that of course
makes our high flying ETF friends easy prey for those hibernating bears. After
seven to ten sessions of upward price action that has pushed the market proxies
up between 4% to a bit over 7%, one might say that the action was a little
too heavenly. Although the indices did manage to press to fresh relative highs
and finish
in the green, up .15% to 1.15%, it was still below average
as we climb increasingly higher up the ole trading tree. While breadth statistics
are still showing some firmness (approx. 2:1 in favor of advancers), I personally
don’t mind putting down the horns a notch, into a somewhat more defensive posture.
The Nasdaq Composite
did ‘flash’ a follow thru day yesterday, but after swimming upstream for
so long, our little friends could use some rest, especially as
obstacles still loom ahead. Besides with the VIX still smelling a bit fishy,
it’s probably time to reel it in a bit. What!!! That’s right, that’s me,
the cautious bull talking. The easy fishing down river has already happened.
The
action in the leading semis has been good, actually after today one could
say a little too good. Fifteen percent in several sessions, hmmm??? Just words
of caution to trim or ‘hedge’ anything that’s blossomed too quickly. For those
that like
to use them, if something you own still looks to be in good technical shape,
some puts against initial trade might be the way to go. This isn’t a call to
get
rid
of the family
farm. The action as mentioned, along with the breakouts that continue
to take
hold, and
then
some, has been pretty darned good, but that’s also when ‘they’ usually come
to get ya.
On average it’s been good as of late for those in the bull camp. But why
take sides when you can consistently make it to the winner’s circle by daytrading
with discipline and consistency? By executing our High and Low RS stocks out
of classic intraday reversal and continuation patterns we stand to profit each
and every day. Whichever animal shows up that day, bull or bear, we’ll climb
on top knowing that we’ve got what it takes to navigate that day’s ride successfully
through the trees of the market’s forest.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
19.23 | down .05 | CVR 6 Sell | 8% below | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
26.50 | down 2.59 | CVR 3,6 Sell | 13% below | At Extreme |
Hottest Sectors : Gold/Silver (XAU) and Software (:SWH)
Weakest Sectors : Retail
(
RTH |
Quote |
Chart |
News |
PowerRating) and Pharmaceuticals
(
PPH |
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 | Today’s Volume |
| Marvel Technologies |
( MRVL | Quote | Chart | News | PowerRating) |
38.71 | Heavy volume engulfing hammer | 2,881m | 7,967m |
| Celgene |
( CELG | Quote | Chart | News | PowerRating) |
37.65 | Top of range close on volume increase, nearing weekly handle b/o triggers |
1,361m | 3,765m |
| Maxtor |
( MXO | Quote | Chart | News | PowerRating) |
10.92 | Top of range consolidation on trading range and 52-week high volume b/o |
3,122m | 5,921m |
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 |
| Fannie Mae |
( FNM | Quote | Chart | News | PowerRating) |
60.90 | Above average volume b/d of daily price supports | 6,493m | 7,185m |
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 | Today’s Volume |
| Â | Â | Â | Â | Â | Â |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Â | Â | Â | Â | Â | Â |
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 |
| Juniper | [JNPR|:JNPR] | 14.72 | 11,546m | 10,243m |
| Altera |
( ALTR | Quote | Chart | News | PowerRating) |
21.76 | 8,108m | 10,305m |
| Veritas |
( VRTS | Quote | Chart | News | PowerRating) |
33.11 | 7,578m | 7,023m |
Institutional Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Home Depot |
( HD | Quote | Chart | News | PowerRating) |
32.16 | 8,605m | 32,570m |
| Amgen |
( AMGN | Quote | Chart | News | PowerRating) |
68.32 | 8,562m | 6,542m |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler