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.
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.
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.
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.
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.