Wednesday’s Top Stocks
It was bound to happen–the bears finally getting the bulls by the horns??
Not quite, but with fractional losses between .30% to .70%, the bears did get
a consolidation day on lighter, below-average trade (grrrr). Both the S&P
and Nasdaq Composite were able to establish fresh 52-week highs before succumbing
to a bout of profit-taking off technical tests in various forms of the notorious
double top daily pattern. Throw in some disappointing price action from Oracle
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some analyst kudos in the premarket–and it’s probably high time once again
for the cautious bull out there to keep the ol’ stops at levels not too far
removed from the market’s own terra firma technical supports.
Breakouts were still working to some degree today–ultimately though, with the
bulls and then the bears getting in on the action today, it became a bit less
of a high-probability environment, and for pigs, it might actually have ‘oinked’
just a little bit. For me, it was another day in which I stressed caution while
the ongoing ‘confirmed rally’ walks on eggshells. This shouldn’t come as any
real surprise as volatility levels continue to wave caution to those who like
to manage positions responsibly and today marked the sixth session of higher
highs.
With the Nasdaq now officially offering reversal players a double top, I don’t
think it’s unreasonable to trail stops aggressively and wait for the next high-probability
opportunities to come our way. What will it take??? Well, for someone like myself
that likes to key off technical levels, 1% to 2% at this point in the S&P
would be a nice start. But my attitude remains such that if the daily breakouts
are working intraday, why knock it and let the ol’ ego keep you from taking
what’s still working in the here and now? Personally, I wouldn’t have an appropriate
answer to that one, as my answer to the market continues to be the same consistent,
disciplined intraday approach to things–whether that means bull, bear or some
mixing and matching…as long as I don’t end up looking like a pig.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
16.42 | up .45 | none | 8% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
26.72 | up .43 | cvn 5 sell | 4% below | not at extreme |
Hottest Sectors : Oil Services
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Weakest Sectors : Retail
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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 |
| Cognizant Technology | ( CTSH | Quote | Chart | News | PowerRating) |
48.40 | Top of range consolidation above weekly pattern b/o levels on confirming volume |
995 | 1,374 |
| Laboratory Holdings | ( LH | Quote | Chart | News | PowerRating) |
36.90 | Top of range consolidation at daily b/o levels within ascending triangle pattern |
1,126 | 614 |
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 |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
43.90 | Bottom of range consolidation at daily range supports on increased volume in Low RS issue |
2,367 | 5,955 |
| Johnson & Johnson | ( JNJ | Quote | Chart | News | PowerRating) |
48.95 | Bottom of range consolidation on increased, above average volume, thru daily consolidation supports in Low RS issue |
8,977 | 10,778 |
| Silicon Labs | ( SLAB | Quote | Chart | News | PowerRating) |
48.18 | Bearish tailing bar below consolidation supports and key moving averages, to close bottom of range |
1,257 | 927 |
| Marvell Technologies | ( MRVL | Quote | Chart | News | PowerRating) |
38.77 | Low of day close, on engulfing bearish bar below key moving averages on increased volume |
3,785 | 3,089 |
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 |
| NA | NA | NA | NA | NA | NA |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| NA | NA | NA | NA | NA | NA |
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 |
| General Electric | ( GE | Quote | Chart | News | PowerRating) |
29.48 | 20,679 | 23,772 |
| Hewlett Packard | ( HPQ | Quote | Chart | News | PowerRating) |
22.45 | 11,979 | 15,421 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Amgen | ( AMGN | Quote | Chart | News | PowerRating) |
58.89 | 9,926 | 10,861 |
| Veritas | ( VRTS | Quote | Chart | News | PowerRating) |
36.86 | 6,238 | 9,695 |
| Intel | ( INTC | Quote | Chart | News | PowerRating) |
33.85 | 52,132 | 44,828 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler