Friday’s Top Stocks
“How about dem’ Yankees?” It’s
difficult to say exactly why the ETFs all closed decidedly down on the session,
but it is a fact that the market did get “slugged”. Who was this team
that hit the market down to critical price supports? It was none other than the
notorious “RED SOX”. The semiconductors ($SOX.X), otherwise known as
the Red Sox, due to its 5%Â plus price decline, led the broader markets to
the downside. Apparently investors are frustrated with the million dollar
question of when the pickup in end demand is going to materialize. The issue of
cyclicality within this sector seemingly swept its way through most other
sectors tied to the economic cycle, and with little positive news to entice
fresh buying, the trend remained down throughout Thursday’s session.
Technically, the SPYs, DIAs, and SMH
closed at their worst levels since October. The good news is that we are at
price supports on lighter volume than yesterday’s session of accumulation. The
QQQs have also still managed to hold above their December pivot lows, and the
50% Fibonacci retracement. The bad news for investors at least, is that the
closing prices are sitting very close to the edge. With the VXN gaining traction
today, possibly following in the footsteps of its more mature cousin the VIX,
well let’s just say, if current supports don’t hold, we might be revisiting some
old friends down south very soon. Keep a close eye on the SMH to find support
above the 22.25 level. This is approximately where a neckline drawn in from the
daily chart shows potential support. This level is also supported by the 70%
Fibonacci level from the October lows.Â
As daytraders we have the luxury of
not having to worry whether or not daily price supports will hold or break. Our
goal is to remain focused on the best issues for the occasion. The Low RS issues
demonstrating weakness in a down market, and the High RS issues that have
remained defiant during recent downturns are how we continually stay one step
ahead, in a market that seems to constantly to trip itself up.Â
Hottest Sectors (HOLDRs):Â Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating) and Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors (HOLDRs):Â Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) and Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Friday’s HELVETICA>stocks to watch:
High
RS issues
closing in Top of Range.
Stocks are scanned from 3 Month RS of 80 or higher
and TM’s Proprietary and Technology 10 Momentum lists on the Indicators page.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Biosite | ( BSTE | Quote | Chart | News | PowerRating) | 84 | 35.14 | 500,000 | 932,000 |
Â
Weak RS issues closing in
Bottom of Range.
Stocks
are scanned from 3 Month RS of 35 or lower and TM’s Implosion and Technology
Implosion Lists on the Indicators page.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Johnson & Johnson | ( JNJ | Quote | Chart | News | PowerRating) | 23 | 51.54 | 7,020,000 | 7,687,000 |
| Schlumberger | ( SLB | Quote | Chart | News | PowerRating) | 28 | 37.13 | 3,092,000 | 3,394,000 |
Â
class=890430920-15102001>
High RS issues with Volume
Surge in last hour.
Stocks are scanned from 3 Month
RS of 80 or higher and TM’s Proprietary and Technology 10 Momentum lists on the
Indicators page.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Anglogold | ( AU | Quote | Chart | News | PowerRating) | 90 | 36.33 | 1,128,000 | 1,608,000 |
Â
Weak RS issues with
Volume Surge in last hour.
Stocks are scanned
from 3 Month RS of 35 or lower and TM’s Implosion and Technology Implosion Lists
on the Indicators page.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Hotels.com | ( ROOM | Quote | Chart | News | PowerRating) | 5 | 40.08 | 1,172,000 | 1,656,000 |
| Sungard Data Systems | ( SDS | Quote | Chart | News | PowerRating) | 10 | 18.56 | 1,463,000 | 1,529,000 |
| BB & T Corp | ( BBT | Quote | Chart | News | PowerRating) | 17 | 32.90 | 1,369,000 | 1,770,000 |
Stocks in Slim
Jims
High RS Slim Jims.
class=890430920-15102001>Stocks are
scanned from 3 Month RS of 80 or higher and TM’s Proprietary and Technology 10
Momentum lists on the Indicators page.
None Today.
Weak RS
Slim Jimsclass=890430920-15102001>.
class=890430920-15102001>Stocks
are scanned from 3 Month RS of 35 or lower and TM’s Implosion and Technology
Implosion Lists on the Indicators page.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Tech Data | ( TECD | Quote | Chart | News | PowerRating) | 9 | 24.96 | 1,006,000 | 543,000 |
class=890430920-15102001> Autozone | class=890430920-15102001> ( AZO | Quote | Chart | News | PowerRating) | class=890430920-15102001> 11 | class=890430920-15102001> 64.36 | class=890430920-15102001> 1,626,000 | class=890430920-15102001> 4,209,000 |
class=890430920-15102001>
High RS
Reversal Patterns.
Stocks with 3 Month RS of 80 and / or
Institutional Favorites that are setting up on a closing basis as potential long reversal pattern
candidates. Patterns include 1,2,3s and Slim Jim consolidations. Background
supports in the form of Fibonacci levels, EMAs, and former price supports are
used in the decision making process.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Wallace Computers | ( WCS | Quote | Chart | News | PowerRating) | 93 | 26.42 | 616,000 | 1,190,000 |
| Teva Pharmaceutical | ( TEVA | Quote | Chart | News | PowerRating) | 97 | 37.40 | 2,543,000 | 2,298,000 |
| Varian Semiconductor | ( VSEA | Quote | Chart | News | PowerRating) | 65 | 26.90 | 1,041,000 | 1,417,000 |
class=890430920-15102001>Varian
Semiconductor has formed a potential reversal setup in the form of a slanted
triple bottom using the 10 min. extended chart. This also has some additional
support with the 50-Day EMA, which is slightly below the “trendline”
class=890430920-15102001>Teva
Pharmaceutical has formed two symmetrical triangles on the daily chart……
class=890430920-15102001>Low RS
Reversal Patterns.
Stocks with 3 Month RS of 35 and / or
Institutional Favorites that are setting up on a closing basis as potential
short reversal pattern
candidates. Patterns include 1,2,3s and Slim Jim consolidations. Whenever
possible background evidence of resistance in the form of Fibonacci levels, EMAs, and former price supports are
used in the decision making process.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Deere & Co. | ( DE | Quote | Chart | News | PowerRating) | 24 | 41.87 | 1,487,000 | 1,485,000 |
class=890430920-15102001>
Deere
& Co. is an example of a Low RS stock setting up with a potential
reversal pattern in the form of a Symmetrical Triangle
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, pattern (Slim
Jims), or last hour volume surges, indicative of follow through in the very near term. Due to the
institutional participation, which can provide additional follow through not
always found in less active issues, the 3 Month RS criteria is more subjective, and quite often less stringent in
evaluating an issues near term prospects. Program trading (which affects many of these
issues) can also be viewed as a potential beneficial factor when stocks listed
below are exhibiting price pattern setups on an intraday and / or daily chart
basis.
Institutional
FavoritesÂ
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Apollo | ( APOL | Quote | Chart | News | PowerRating) | 61 | 44.09 | 1,906,000 | 2,581,000 |
| EchoStar | ( DISH | Quote | Chart | News | PowerRating) | 82 | 25.20 | 4,177,000 | 5,837,000 |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) | 79 | 74.30 | 6,445,000 | 5,527,000 |
class=890430920-15102001>Institutional
Laggards.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Chiron | ( CHIR | Quote | Chart | News | PowerRating) | 36 | 37.61 | 1,742,000 | 2,503,000 |
| Northern Trust | ( NTRS | Quote | Chart | News | PowerRating) | 27 | 34.04 | 1,296,000 | 1,457,000 |
| Maxim Integrated | ( MXIM | Quote | Chart | News | PowerRating) | 27 | 30.80 | 9,040,000 | 11,124,000 |
Â
Best of luck with your trading Coby. Please use
protective stops on trades.