Wednesday’s Top Stocks
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The herd managed to stay on track down the very narrow streets of both Pamplona and Wall Street in Tuesday’s trade. Much of today’s ‘mooove’ was lateral in nature and confined to some very low intraday volatility. The Q’s were able to push into fresh territory, on the heels of ‘moo-moo-mentum’ favorite Sohu.com
(
SOHU |
Quote |
Chart |
News |
PowerRating) and Websense
(
WBSN |
Quote |
Chart |
News |
PowerRating), as company-specific reports had these two ‘web-related’ companies making a whole lotta ‘cents and sense’ to investors. Elsewhere, in the land of chop, all three of our ETF friends made a late-day push to gain ground, closing up between .05% – 1.25%. But before you go ‘Yahoo!!’, volume while strong on the NASDAQ, was still light over on the NYSE. Breadth, in the form of advancing issues over decliners showed a bullish disposition on both floors, but also favored NAZ listed tech names, as a ratio of approximately 2:1 was seen there, but a much milder 1.3:1 was notched in those stodgy ol’ blue chips of the ‘old economy.’
Trends always end up persisting longer than I ever think possible, and so today’s action, at least in the Q’s, had me almost looking kind of ‘Grizzly.’ Mind you, this is coming from a guy that enjoys playing from the long side in general. Some days that means focusing on strong reversal candidates, while on other days that means concentrating on breakouts. There were some opportunities today, but as the day wore on I couldn’t help but feel that the cobblestone streets that the bulls have been running on, might just
be a little bit less sturdy with each passing bullish ‘mooove.’ Just words of caution, but don’t worry I won’t be a party spoiler, because I’m always willing to buy the company line, that come rain or shine, it’s still good to be a daytrader.
It really doesn’t matter what I think. As long as I’m prepared to act on ‘what is’, and not confuse the issue with, ‘what should be’, in the world according to my ego, we can stay ready to trade and continue to play a winning game. All that anyone can do ahead of time is stay as best prepared as possible. For us, that means having our list of High and Low RS issues by our side, and then waiting for the classic setups to appear once again, each and every trading day.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
21.40 | down .65 | none | 2% below | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
33.49 | down .02 | CVR 1,2 Buy | 5% above | Not At Extreme |
Hottest Sectors : Retail
(
RTH |
Quote |
Chart |
News |
PowerRating) and
Broker/Dealers
(
$XBD.X |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Telecomm
(
TTH |
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 |
| Checkpoint | ( CHKP | Quote | Chart | News | PowerRating) |
20.76 | Descending triangle b/o on daily, to close top of range on volume |
4,574m | 7,760m |
| Pixar | ( PIXR | Quote | Chart | News | PowerRating) |
66.32 | volume follow-thru day to close above angular resistance, after weekly cup and handle b/o |
891k | 1,765m |
| Geron | ( GERN | Quote | Chart | News | PowerRating) |
8.99 | Wide range bar higher on 2.5 week breakout of daily consolidation on volume |
1,586m | 4,614m |
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 |
| Nike | ( NKE | Quote | Chart | News | PowerRating) |
53.71 | Low RS stock closing near angular supports of daily triangle pattern with 50-Day EMA acting as pattern resistance |
1,582m | 1,181m |
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 |
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 |
| Network Appliances | ( NTAP | Quote | Chart | News | PowerRating) |
18.69 | 6,946m | 5,365m |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
52.66 | 5,772m | 3,874m |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
51.59 | 5,942m | 7,176m |
| Best Buy | ( BBY | Quote | Chart | News | PowerRating) |
47.32 | 3,747m | 3,009m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Coca Cola | ( KO | Quote | Chart | News | PowerRating) |
44.22 | 5,282m | 11,925m |
| General Electric | ( GE | Quote | Chart | News | PowerRating) |
28.81 | 19,074m | 22,765m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler