Wednesday’s Top Stocks
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In the dog days of summer sometimes you’ll see man’s best friend, or at least a trader’s, do all kinds of neat tricks. In today’s trade we saw the ‘roll over and play dead’ trick, followed up by an excellent game of chasing one’s own tail. In the end, after another wonderful show, our little ETF friends finished up fractionally higher between .09% and .18%. Apparently some of the market observers liked the action, as they got out onto the playing field as evidenced by volume which did increase in today’s trade, but was still well-below average. With market breadth signaling almost a stalemate between advancing and declining issues, it looks like market bulls are still enjoying their last days of summer.
There were plenty of shorts that looked pretty darn good early on, but it must have turned cold because everyone it seems got a case of cold feet, deciding to put on some longs to cover their earlier threads. It was one of those days where bears made money, bulls made money, and pigs got slaughtered. Various tests of the 20 and 50-Day EMAs, as well as Fibonacci support levels stemmed the ‘red tide’, reversing the morning losses out of intraday technical patterns to score gains on the day for da’ bulls. With technical floors in place it sure does look pretty and it’s probably worth nibbling on some bull. The question to you is, why nibble when you can enjoy all kinds of tasty treats ranging from bear to bull on an intraday basis?
A very nice session for the disciplined daytrader who decided to make Tuesday just another trading day. I guess you can say that the summertime blues might have gotten just a bit greener in color. Class might not have seen capacity attendence today, but it was definitely in ‘full swing’ for those daytraders that were ready to take the classic intraday reversal and continuation trades from their list of High and Low RS issues.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
20.33 | Up .01 | CVR 1 Buy | 1.5% above | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
29.85 | Up .51 | None | 4% above | Not At Extreme |
Hottest Sectors : Gold/Silver (XAU) and
Networking (NWX)
Weakest Sectors :Â Biotechs (BBH|BBH) and
Broker/Dealers (XBD)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 |
| Documentum | ( DCTM | Quote | Chart | News | PowerRating) |
19.10 | High level consolidation after technical test of 20 and 50-Day EMAs on strong relative volume |
1,486m | 1,311m |
| Digital Insight | ( DGIN | Quote | Chart | News | PowerRating) |
23.49 | Bullish follow-thru on volume increase out of inside hammer pattern |
508k | 627k |
| Digital River | ( DRIV | Quote | Chart | News | PowerRating) |
26.61 | 52-Week high on Cup & Handle b/o with confirming volume |
951k | 1,898m |
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 |
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 |
| Zoran | ( ZRAN | Quote | Chart | News | PowerRating) |
24.07 | Ascending triangle intraday on daily hammer reversal off 50-Day EMA test |
1,353m | 842k |
| Amgen | ( AMGN | Quote | Chart | News | PowerRating) |
65.53 | Potential daily 123 reversal setting up | 8,448m | 8,403m |
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 |
| KLA-Tencor | ( KLAC | Quote | Chart | News | PowerRating) |
57.41 | 8,990m | 7,748m |
| Oracle | ( ORCL | Quote | Chart | News | PowerRating) |
12.44 | 34,670m | 49,906m |
| Juniper | ( JNPR | Quote | Chart | News | PowerRating) |
16.37 | 11,679m | 12,723m |
| Eli Lilly | ( LLY | Quote | Chart | News | PowerRating) |
64.56 | 3,501m | 4,173m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| JP Morgan | ( JPM | Quote | Chart | News | PowerRating) |
33.38 | 9,172m | 9,837m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler