Wednesday’s Top Stocks
Can we call it a week yet? Since it’s only Tuesday, probably not. But, if
you look at our ETF friends and their cash equivalents, it has certainly been
a
week of consolidation activity. With all of that work, maybe the index proxies
can take a break, and give one to investors instead (upside please).
Today marked an increase in activity on
some
Institutional
distribution within the
‘confirmed
rally’
as
both the
Nasdaq
Composite and the S&P 500 cash index saw higher, above-average volumes within
our week-long trading range. All said and done, within our narrowing band of
price activity, the ETFs finished off between .65% and 1.20% with profit-takers
taking the bull by the horns by a margin of roughly 1.6:1.
As mentioned yesterday, the signs were popping up that things might be getting
a little rough within the confirmed rally: the historic lows set in the CBOE
Volatility (VIX) Index, failure thus far at major ‘Fib’ levels (see, I told
you I wouldn’t lie to you), as well as increasingly difficult trade within
those issues breaking out, or attempting to do so. In my personal opinion,
‘things’, ok…trading, became a wee bit more treacherous today as we are officially
in ‘chop land’ as the ETFs bob and weave above prior resistance levels. The
past two sessions have brought on increasing levels of fear and
greed by bigger investors, leading to a lot of erratic up and down moves
that are less-than-edge worthy in my book. It ‘bears’ reminding that we are
still very much in ‘bull mode’, but I think it’s also appropriate to mention
that little Wall Street parable, ‘bulls make money, bears make money, and pigs
get slaughtered.’ While our bovine friends take a break from their feeding
frenzy and find some fresh legs to stand on, maybe we can concentrate on the
more important things in life, namely consistent, disciplined daytrading.
It still works, but you might have to dig deeper into your past to figure
out how to play consistently these days. Remember that ultimately the consistent
daytrader comes in with two sets of high-probability lists from which to trade.
I’m talking about hitting the sell key when you see those ever familiar high
probability
patterns
setting
up as intraday shorts. We’ve been very fortunate the past several months to have
our 401Ks, IRAs…once again participate in the fun, but even if things turn
a bit messy for investors, we’ll still be all smiles if we take ‘the flipside
of the coin’ equally as well, and continue our mission of taking it to the
bank.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
19.68 | up .89 | CVR 2 Sell | 1% below | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
30.38 | up .83 | none | 1% above | Not At Extreme |
Hottest Sectors : Gold/Silver (XAU) and Broker/Dealers
(XBD)
Weakest Sectors : Retail
(
RTH |
Quote |
Chart |
News |
PowerRating) and Oil Services
(
OIH |
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 000’s | Today’s Volume |
| Integra Life Sciences | ( IART | Quote | Chart | News | PowerRating) |
29.34 | High level consolidation nearing weekly handle breakout pivots of 30.04 on high relative volume |
291 | 472 |
| Eon Labs | ( ELAB | Quote | Chart | News | PowerRating) |
37.63 | Top of range close on daily range b/o above technical resistance, and on increased volume |
241 | 318 |
| Pacific Internet | ( PCNTF | Quote | Chart | News | PowerRating) |
8.15 | Bullish outside bar on volume increase to close above 50-Day EMA, nearing low-level Cup and Handle pivots |
437 | 256 |
| Emulex | ( ELX | Quote | Chart | News | PowerRating) |
27 | Breakout of 9-month trading range by 1% on strong relative volume |
2,306 | 3,230 |
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 |
| Whirlpool | ( WHR | Quote | Chart | News | PowerRating) |
68.25 | Bottom of range close on volume increase, and technical break of the 20-Day EMA, defining prior trend up |
647 | 602 |
| KB Homes | ( KBH | Quote | Chart | News | PowerRating) |
57.51 | Break of the 20 & 50-Day EMAs within daily trading range on above-average trade in Low RS issue |
992 | 1,313 |
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 |
| Neoware | ( NWRE | Quote | Chart | News | PowerRating) |
21 | Heavy volume b/o of ‘loose’ cup and handle to fresh 52-week highs, closing above 1,2,3 intraday reversal pattern that confirmed prior resistance as support |
402 | 839 |
| Dicks Sporting Goods | ( DKS | Quote | Chart | News | PowerRating) |
34.50 | Potential daily chart 1,2,3 ‘broadening triangle formation’ pattern off the 50% June supports, closing in a bottom of range consolidation pattern |
416 | 555 |
| PEC Solutions | ( PECS | Quote | Chart | News | PowerRating) |
16.10 | Doji close on ‘climatic’ volume, setting up potential Fibonacci test and reversal play ala the ‘Hobbes Triple Crown’ |
296 | 4,565 |
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 |
| Morgan Stanley | ( MWD | Quote | Chart | News | PowerRating) |
49.32 | 4,679 | 5,830 |
| Nextel | ( NXTL | Quote | Chart | News | PowerRating) |
19.65 | 18,511 | 21,072 |
| MedImmune | ( MEDI | Quote | Chart | News | PowerRating) |
36.53 | 3,884 | 7,287 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Verizon | [VZ|:VZ] | 35.15 | 6,933 | 6,249 |
| Wal-Mart | ( WMT | Quote | Chart | News | PowerRating) |
57.06 | 7,020 | 9,508 |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
50.87 | 12,795 | 12,926 |
| 3M | ( MMM | Quote | Chart | News | PowerRating) |
137.41 | 2,104 | 2,142 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler