Here Are Friday’s Top Stocks


Chicago’s other club,
the Bulls,

dug in their heels during the second half and stole the ball from the
team reigning supreme, da’ Bears. Is Football season finally over? The
first half of the trading day was scripted from recent sessions as the ETFs
tried to find an opening bid, only to be greeted by Yogi and Co. On light
volume the ETFs then trended lower throughout the morning and early afternoon,
establishing intraday losses in excess of a percentage point. But, in what could
only be classified as a miracle of Biblical proportions, or possibly short
covering, the ETFs finally managed to find a technical level from which to
trigger a sustainable rally in the final 90 minutes of trade. This action has
the ETFs closing essentially flat on the session and at their best levels of the
day.

So seriously, are the Bears out of
business? Doubtfully, we’re still in the woods so to speak — deep in the woods,
but with fear, as measured by the VIX showing at least some semblance of a
reality check for perma bulls, we could see a technical-driven rally back into
prior price supports. Today’s action has all of the ETFs “tailing”
higher in what is commonly known as a hammer pattern.

The SPYs, the weakest of
the ETFs, tested its 78% Fibonacci level at session lows. The DIAs meanwhile,
pierced the 70% level, and the QQQs flexed some further muscle by staying above
its 62% price support. Will the bullish candle patterns produce something more
than one day of short-covering off of the forementioned technical levels?
It’s a better bet than spinning the wheel in Vegas, but one thing is certain: To
make trading consistency part of your daily routine, always stick to those
High and Low RS issues that best fit the conditions of the day.

In closing today’s commentary, I’d like
to say “Doooohhh!!” Also, if you have any questions or would like to
see more market-explicit (not explicative, although that might come to mind if
you haven’t been using stops) material, and learn how to use our resources more
effectively, please feel free to check out tradingmarkets.com.

Hottest Sectors (HOLDRs): Software
(
SWH |
Quote |
Chart |
News |
PowerRating)
and Regional Banks
(
RKH |
Quote |
Chart |
News |
PowerRating)


Weakest Sectors (HOLDRs): Oil
Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
and Internet
(
HHH |
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.




class=890430920-15102001>







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class=890430920-15102001>







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
Career
Education

(
CECO |
Quote |
Chart |
News |
PowerRating)
89 45.92 883K 1,304M
Power
Integrations

(
POWI |
Quote |
Chart |
News |
PowerRating)
92 20.76 582K 645K



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.



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class=890430920-15102001>







class=890430920-15102001>







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
Dentsply
(
XRAY |
Quote |
Chart |
News |
PowerRating)
33 32.72 749K 498K
Carnival
(
CCL |
Quote |
Chart |
News |
PowerRating)
15 22.19 2,577M 3,869M

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
NetScreen
Technologies

(
NSCN |
Quote |
Chart |
News |
PowerRating)
88 17.70 1,103M 1,610M
St.
Judes

(
STJ |
Quote |
Chart |
News |
PowerRating)
89 42,82 1,835M 3,753M
Storage
Technology

(
STK |
Quote |
Chart |
News |
PowerRating)
89 22.72 784K 493K


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
Overture
Services

(
OVER |
Quote |
Chart |
News |
PowerRating)
32 20.95 2,072M 1,844M
Mandalay
(
MBG |
Quote |
Chart |
News |
PowerRating)
21 24.03 926K 975K
Techne
(
TECH |
Quote |
Chart |
News |
PowerRating)
7 20.89 584K 553K

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.


class=890430920-15102001>
None
Today.


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. 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 1,2,3s and Slim Jim (SJ) consolidations. Background
supports in the form of Fibonacci levels, EMAs (DEMA=daily ema), and former price supports are
used in the decision making process.




class=890430920-15102001>










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size=2 Helvetica>Name

class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength
class=890430920-15102001> size=2 Helvetica>Price Pattern
Type
class=890430920-15102001>Average
Volume
class=890430920-15102001>Today’s
Volume
Cognex
Corp

(
CGNX |
Quote |
Chart |
News |
PowerRating)
84 20.69 b/o
above reversal consolidation w/ 50DEMA
376K 491K
ADTRAN
(
ADTN |
Quote |
Chart |
News |
PowerRating)
87 34 asc.triangle
off 50DEMA
738K 680K
Avid
Technology

(
AVID |
Quote |
Chart |
News |
PowerRating)
89 22 1,2,3
forming
721K 676K
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating)
53 33.91 triangle
on top of SJ reversal
13,745M 40,335M

class=890430920-15102001>
Staples


class=890430920-15102001>

(
SPLS |
Quote |
Chart |
News |
PowerRating)



class=890430920-15102001>
65


class=890430920-15102001>
16.37


class=890430920-15102001>
SJ off
prior resistance zone

class=890430920-15102001>
4,000M

class=890430920-15102001>
5,613M



class=890430920-15102001>Low RS
Reversal Patterns.

Stocks with 3 Month RS of 35 and / or
Institutional Favorites that are setting up (within .15 of trigger) on a closing basis as potential
short reversal pattern
candidates. Patterns include 1,2,3s and Slim Jim (S.J.) 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.



class=890430920-15102001>None
Today.


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
Favorites



























































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
Xilinx
(
XLNX |
Quote |
Chart |
News |
PowerRating)
63 19.88 9,910M 7,807M
SAP
Aktiengesell

(
SAP |
Quote |
Chart |
News |
PowerRating)
87 23.27 1,611M 1,611M
Adobe
(
ADBE |
Quote |
Chart |
News |
PowerRating)
77 26.93 2,929M 2,122M
Nextel
(
NXTL |
Quote |
Chart |
News |
PowerRating)
69 12.33 17,119M 20,653M

Yahoo


(
YHOO |
Quote |
Chart |
News |
PowerRating)


82

18.07

9,050M

13,389M

Merck


(
MRK |
Quote |
Chart |
News |
PowerRating)


40

52.63

6,063M

4,493M

class=890430920-15102001>Institutional
Laggards.



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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
Gilead
Sciences

(
GILD |
Quote |
Chart |
News |
PowerRating)
30 32.71 3,458M 7,467M
Electronic
Arts

(
ERTS |
Quote |
Chart |
News |
PowerRating)
19 48.25 5,707M 3,486M
Teva
Pharmaceuticals

(
TEVA |
Quote |
Chart |
News |
PowerRating)
97 34.69 2,375M 2,542M
Cardinal
Health

(
CAH |
Quote |
Chart |
News |
PowerRating)
17 53.98 2,762M 6,870M

Best of luck with your trading. Please use
protective stops on
class=890430920-15102001> all trades.