Wednesday’s Top Stocks
Maybe yesterday should have been the first day of Autumn, as the market took
an awful-looking ‘fall’ that set the stage for a beautiful showing by all
three of our ETF friends and their cash brethren, in Tuesday’s trade. The most
impressive of the lot was the Nasdaq Composite and the Q’s
(
QQQ |
Quote |
Chart |
News |
PowerRating) which
scored gains of approximately 1.50% on heavier, above-average trade. Not quite
a ‘follow-thru’ day, but definitely a sign of strong Institutional support.
The Diamonds and Spyders rode the gravy train to the plus side, up between
.20% to .40% on heavier trade as well, with gainers showing the upper hand
by approximately 1.75:1. This action is especially good in light of the early
drubbing within the Broker/Dealer sector (XBD) as better-than-expected earnings
releases from a handful of these stocks led to some ‘early’ profit-taking.
This was later replaced by a re-evaluation of the ‘sell-the-news’ tactic,
and
an overall bid that lifted
most everyone in the group, except poor ol’ Goldy
(
GS |
Quote |
Chart |
News |
PowerRating)…’yahoo.’
Lots of chop in two of the three, but considering that the Nasdaq was
able to put in a solid trend day higher, it made trading breakouts and intraday
consolidation patterns much more user friendly in today’s trade for growth
and ‘mo mo’ stocks. Poor ol’ bears…’GRRR.’ They should just learn how
to say ‘GERN’ instead. I know a handful of savvy traders that did just that.
Personally, I don’t care how it happens. Any day that opportunity in the form
of disciplined, conistent daytrading presents itself is good enough to let
out a ‘grrreat’ big ol’ ‘yahoo!!!’ in my humble opinion.
You gotta be in it, to win it. But, the best way to keep it a game with edge
skewed in your favor, and not a throw of the dice, is by playing consistently,
out of high-probability patterns with your list of High and Low RS stocks.
Sometimes it ain’t pretty during the ‘intraday’, but when the bell rings at
the close of trade, you’ll probably be thanking the NYSE once more, unlike
some other investing brethren.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX(VIX) | Â | Â | Â | Â | Â |
| VXN(VXN) | Â | Â | Â | Â | Â |
Hottest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) and Disc Drives (DDX)
Weakest Sectors : Telecomm
(
TTH |
Quote |
Chart |
News |
PowerRating) and Health/Medical (HMO)
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 |
| Marvel | ( MVL | Quote | Chart | News | PowerRating) |
23.71 | Top of range consolidation on daily wide range bar, relative volume increase within weekly chart high-level base |
1,426 | 801 |
| Metrologic | ( MTLG | Quote | Chart | News | PowerRating) |
44.91 | Top of range consolidation on volume b/o of weekly consolidation to fresh 52-week highs by approx. 1.5% |
129 | 446 |
| OmniVision | ( OVTI | Quote | Chart | News | PowerRating) |
49.94 | Top of range consolidation on volume b/o of ascending triangle on daily chart |
1,283 | 2,367 |
| eSpeed | ( ESPD | Quote | Chart | News | PowerRating) |
26.47 | Top of range consolidation, at 3-week congestion b/o levels on daily chart |
390 | 252 |
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 |
| Cabot Microelectronics | ( CCMP | Quote | Chart | News | PowerRating) |
59.05 | Bottom of range consolidation follow-thru day out of technical b/d on increased volume |
776 | 832 |
| Kroll Inc. | ( KROL | Quote | Chart | News | PowerRating) |
19.85 | B/D of daily ‘neckline’ and price pivot supports on above-average volume |
596 | 1,670 |
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 |
| Â | Â | Â | Â | Â | Â |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | 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 000’s | Today’s Volume |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
37.85 | 12,035 | 15,697 |
| Symantec | ( SYMC | Quote | Chart | News | PowerRating) |
65.79 | 3,694 | 5,553 |
| Staples | ( SPLS | Quote | Chart | News | PowerRating) |
25 | 5,125 | 6,994 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
33.13 | 6,880 | 20,619 |
| Northrop Grumman | ( NOC | Quote | Chart | News | PowerRating) |
87.96 | 988 | 2,948 |
| Merck | ( MRK | Quote | Chart | News | PowerRating) |
51.21 | 6,204 | 4,777 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler