Wednesday’s Top Stocks
‘No respect I tell ya.’
The ETFs behaved as though Mr. Greenspan was more Rodney Dangerfield in the first of two public shows, as our dearly beloved index proxies finished off down between .10% and .40%, after an initial opening thrust higher. Maybe it had something to do with the yield on the 10-year US Note soaring in today’s session to close near their highs, and right at weekly technical resistance. The Homebuilders (HGX) certainly took notice, as an intraday reversal ‘hammered’ the sector, and other yield sensitive issues in Tuesday’s session. Well, maybe Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) ‘will tell’ the bulls what they want to hear. Intel reports later on this evening, let’s just hope they give investors something to ‘yahoo’ about. Volume on the session was slightly under yesterday’s above average trade over on the NASDAQ, while the NYSE came in shy of that benchmark once more, and about on par with Monday. Market breadth favored the bears today, but more likely than not, it was just those looking to take some profits out of the market, in our four month ‘confirmed rally.’
Not much to say technically today. After the initial gap higher it was one of those classic trend reversals lower, but without a great deal of volatility. The Spyders were contained to some ‘inside’ action, while the Q’s are still flirting with recent highs. With the rotation between sectors on what seems like a daily basis, and more grinding action in the ETFs, today’s trade wasn’t in my top 10 by any stretch of the imagination. But, I can tell you that daytrading high probability setups on a daily basis remains my all-time favorite way to play the game day in, and day out.
We come out each day prepared to do what we do best. Namely, execute high probability continuation and reversal setups as they appear each and every day. Sometimes we jump on board to early, only to find that we have to bow out gracefully. But, if we’re willing to accept the good fortune of being in our position in the first place, we’ll also be more than ready to prepare for the next high probability ride that does take shape shortly thereafter, bringing us safely back to the familiar grounds of profitable, consistent daytrading.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
21.84 | up .43 | none | 2% above | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
33.95 | up .06 | CVR 1 Buy | 3% above | Not At Extreme |
Hottest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating) and
Biotechs
(
BBH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Homebuilders
(
$HGX.X |
Quote |
Chart |
News |
PowerRating) and
Gold/Silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating)
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 |
| Rambus | ( RMBS | Quote | Chart | News | PowerRating) |
20.19 | Top of range consolidation on b/o test of daily cup and handle on volume |
1,624m | 6,862m |
| Computer Associates |
( CA | Quote | Chart | News | PowerRating) |
24.33 | Top of range intraday, on test of daily chart consolidation pattern |
3,700m | 3,222m |
| Pacer International |
( PACR | Quote | Chart | News | PowerRating) |
20.49 | High volume b/o to close in a pullback support pattern intraday |
205k | 889k |
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 |
| NVIDIA | ( NVDA | Quote | Chart | News | PowerRating) |
23.45 | Technical daily breakdown to close bottom of range on volume |
11,125m | 95,18m |
| Intuit | ( INTU | Quote | Chart | News | PowerRating) |
43.21 | Bottom of range intraday to close near technical price supports |
3,725m | 2,722m |
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 |
| Thoratec | ( THOR | Quote | Chart | News | PowerRating) |
16.35 | Top of range consolidation off of technical reversal at the 20-Day EMA and prior highs on strong volume |
713k | 2,033m |
class=890430920-15102001>
Short
Reversals
Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Silicon Laboratories | ( SLAB | Quote | Chart | News | PowerRating) |
32.86 | Potential 5 point reversal bar short setting up as part of ‘broadening’ or RST formation |
1,371m | 1,100m |
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) |
51.30 | 10,277m | 16,554m |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
53.80 | 5,999m | 17,928m |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
52.56 | 5,083m | 7,603m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
36.95 | 6,394m | 9,661m |
| Lehman | ( LEH | Quote | Chart | News | PowerRating) |
66.50 | 2,830m | 4,109m |
| Fannie Mae | ( FNM | Quote | Chart | News | PowerRating) |
69.06 | 5,256m | 10,771m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler