Wednesday’s Top Stocks
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With Monday’s trade being a low volatility ‘test’, it was nice to see things back to normal on Tuesday. Unfortunately, with consumers apparently ‘just browsing’ these days, the ol’ market trading tree had a small piece removed from it. This action has the ETFs down between .45% and .75%, as it fell further into the established range. Volume was on par with yesterday’s below average figures, and market breadth was even less decisive as the combined ratio of the ‘two floors’ was less than 1.5:1. Hmmm, I don’t know if I should ‘YAHOO’, or just give out a big ol’ ‘yawn.’
The daily consolidation patterns had another day of indecision within the established ranges. Fortunately for daytraders, with ‘the number’ out this morning, we were blessed with some excellent intraday reversal opportunities. Don’t thank whoever it was on the Street that came out with the Saddam rumor. That’s what gave the talking heads everywhere ‘a reason’ for the intraday reversal which stopped the early bleeding. Instead, thank yourself for being prepared to daytrade the patterns with discipline and consistency.
Everyone else seems to need a reason after the fact. ‘Why did we rally today?’…who cares, seriously. To succeed as a daytrader, we have to be ready before the media gets ‘their reason.’ The way we do this each and every day is by staying prepared to trade the high probability setups out of our High and Low RS lists…bottom line, and that my friend is what adds to our other bottom line, end of story.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
20.23 | up .30 | CVR 2 Sell | 4% below | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
30.16 | down .24 | none | 7% below | Not At Extreme |
Hottest Sectors : Health/Medical
(
$HMO.X |
Quote |
Chart |
News |
PowerRating)
and Networking (NWX)
Weakest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating) and
Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)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 |
| Affiliated Computer Services. | ( ACS | Quote | Chart | News | PowerRating) |
48.55 | Bullish gap higher above technical resistance to close at high of day on strong volume |
2,065m | 6,079m |
| Avid Technology |
( AVID | Quote | Chart | News | PowerRating) |
47.14 | 52-Week high, top of range close in consolidation pattern |
813k | 533k |
| Sangstat | ( SANG | Quote | Chart | News | PowerRating) |
16.29 | Top of range consolidation, fresh 52-week highs on bullish daily gap |
307k | 1,548m |
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 |
| BJ Services | ( BJS | Quote | Chart | News | PowerRating) |
34.06 | Bottom of range consolidation on volume, to close below 200-Day EMA |
2,557m | 4,422m |
| Intersil | ( ISIL | Quote | Chart | News | PowerRating) |
22.93 | Bottom of range close on daily follow thru off yesterday’s technical reversal |
4,285m | 4,399m |
| Biovail | ( BVF | Quote | Chart | News | PowerRating) |
38.50 | High volume low of day close, on technical breakdown |
2,042m | 8,597m |
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 |
| Biogen | ( BGEN | Quote | Chart | News | PowerRating) |
37.78 | Potential 1,2,3 daily reversal forming off of 62% Fibonacci retracement |
5,358m | 2,741m |
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 |
| Paychex | ( PAYX | Quote | Chart | News | PowerRating) |
31.29 | 2,754m | 2,733m |
| United Technologies | ( UTX | Quote | Chart | News | PowerRating) |
76.74 | 2,238m | 2,099m |
| Gilead Sciences | ( GILD | Quote | Chart | News | PowerRating) |
70 | 4,269m | 3,305m |
| Microchip Technology | ( MCHP | Quote | Chart | News | PowerRating) |
25.20 | 3,642m | 2,820m |
| Juniper | ( JNPR | Quote | Chart | News | PowerRating) |
14.80 | 14,224m | 17,851m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| IBM | ( IBM | Quote | Chart | News | PowerRating) |
81.80 | 7,624m | 7,242m |
| Johnson & Johnson | ( JNJ | Quote | Chart | News | PowerRating) |
50.63 | 9,192m | 9,291m |
| SBC | ( SBC | Quote | Chart | News | PowerRating) |
23.57 | 8,816m | 8,130m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler