Here Are Monday’s Top Names
Sometimes the closing
numbers don’t tell the whole story. Although
the DIAs and the SPYs only closed slightly above the unchanged mark, it was an
impressive victory, and for the QQQs, hats off, ladies and gentlemen as the ETF
closed at its highest levels in more than a month. The stage was set early for
the “reversal
players” to fleece the “retail”, as the media had a field day
with a worse-than-expected employment figure, and worrisome news out of North
Korea. The markets gapped lower on “the news” and then reversing
sharply higher during the opening hour of trade. More impressive than the fact
that we’re able to play the same game over and over, is the fact that the
market, when all was said and done, ignored negative news. This is bullish price
action, especially in light of the recent run up over the past several trading
sessions.
Am I as giddy as a school girl? No,
but the market is talking to us right now, and the best thing that you can do
for yourself is to stick to your trading rules, listen to the market, and don’t
let opinions get in the way of profitable trading from both sides of the market.
Even in bullish markets, if the ETFs so bless us with that type of price action,
the best way to participate is still with your nightly lists of stocks that you
keep by your side for whatever the market delivers the next trading day.
Part of the exercising caution, but
not letting my opinion get in the way of things, stems from the volatility
indices. While the VIX is not registering any sell signals this evening, and the
VXN has only the 6 sell signal, the indices are at lows set in late November.
What happened in that instance was that the ETFs were able to rally into early
December with the volatility indices producing a rally along side the equity
markets. Investors pushed prices higher while exercising caution in the form of
premium buying, hedging their portfolios as prices rose. Of course I can’t say
for certain if a similar situation will occur, but price and volume action
should be acknowledged for what it is, and right now it’s saying MOOO (I think
bulls can MOOO).Â
On a related sidenote, especially for
those so inclined to trade options, exercising bullish caution in this type of
environment is a gift of sorts as you can find in the money and slightly in the
money options with very little premium attached. Always try to use spreads, if
the premium makes it advantageous to do so, but in general, those looking for
directional bets right now ( bullish or bearish for that matter), are being
given a nice treat from the options market makers. Have a good weekend.
Have a good evening.
Hottest Sectors (HOLDRs):
Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating) and Biotechs
(
BBH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors (HOLDRs): Telecommunications
(
TTH |
Quote |
Chart |
News |
PowerRating)
and Utilities
(
UTH |
Quote |
Chart |
News |
PowerRating)
Monday’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 |
| SafeNet | ( SFNT | Quote | Chart | News | PowerRating) | 91 | 30.50 | 290,000 | 788,000 |
| Integrated Circuit Systems | ( ICST | Quote | Chart | News | PowerRating) | 87 | 22.50 | 1,765,000 | 2,215,000 |
| ADTRAN | ( ADTN | Quote | Chart | News | PowerRating) | 91 | 39.12 | 533,000 | 1,146,000 |
| Network Associates | ( NET | Quote | Chart | News | PowerRating) | 96 | 20.19 | 2,107,000 | 3,510,000 |
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 |
| LifePoint Hospitals | ( LPNT | Quote | Chart | News | PowerRating) | 5 | 24.05 | 887,000 | 4,661,000 |
| Hotels.com | ( ROOM | Quote | Chart | News | PowerRating) | 28 | 47.50 | 1,080,000 | 1,128,000 |
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 |
| New Century Financial | ( NCEN | Quote | Chart | News | PowerRating) | 89 | 31.29 | 807,000 | 1,021,000 |
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) | 28 | 47.50 | 1,080,000 | 1,128,000 |
| WellPoint | ( WLP | Quote | Chart | News | PowerRating) | 17 | 69.57 | 2,019,000 | 2,137,000 |
| Techne | ( TECH | Quote | Chart | News | PowerRating) | 9 | 26,35 | 421,000 | 556,000 |
| Tech Data | ( TECH | Quote | Chart | News | PowerRating) | 53 | 28.12 | 1,124,000 | 570,000 |
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 |
| Charles River Labs | ( CRL | Quote | Chart | News | PowerRating) | 6 | 31.79 | 500,000 | 819,000 |
class=890430920-15102001>New Category
High RS
Reversal Patterns.
Stocks with 3 Month RS of 80 or higher
that are setting up on a closing basis as potential reversal pattern
candidates.
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 |
| **Cymer Inc | ( CYMI | Quote | Chart | News | PowerRating) | 94 | 38.82 | 1,895,000 | 2,621,000 |
| EchoStar Communications | ( DISH | Quote | Chart | News | PowerRating) | 85 | 26.22 | 3,854,000 | 7,105,000 |
class=890430920-15102001>
**Cymer
Inc. Intraday chart of Friday. CYMI
is setting up as a potential 1,2,3 reversal pattern in the direction of the
daily trend. The stock established a fresh 6 Month High today. The daily
chart pattern looks very constructive as a well defined high level base. The
stock closed up on the session, but well off its highs, and more importantly
.10 below the prior 6 month highs. This is a similar situation to that of
buying the pullback to the “pivot” break out point, except that we
are not at 52 week highs, but this is obviously a high RS stock with a well
defined pattern on both the intraday and daily charts.
Â
class=890430920-15102001>New Category
Institutional Favorites.
The following stocks are selected from
the Nasdaq, S&P 500 & 600 Indices. These are normally heavily traded,
liquid issues that
are exhibiting strength, 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 relative
strength 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.
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 |
| Novellus | ( NVLS | Quote | Chart | News | PowerRating) | 88 | 34.75 | 10,828,000 | 12,520,000 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) | 93 | 19.97 | 9,683,000 | 13,086,000 |
| PeopleSoft | ( PSFT | Quote | Chart | News | PowerRating) | 91 | 21.77 | 6,848,000 | 8,414,000 |
| Adobe | ( ADBE | Quote | Chart | News | PowerRating) | 79 | 28.60 | 3,,344,000 | 3,396,000 |
class=890430920-15102001>Institutional
Laggards.
The following stocks are selected from
the NASDAQ, S&P500 & 600 Indices. These are heavily traded issues that
are exhibiting relative weakness, pattern setups (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 relative
strength 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.
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 |
| Dell Computers | ( DELL | Quote | Chart | News | PowerRating) | 48 | 27.15 | 23,488,000 | 51,900,000 |
| Cardinal Health | ( CAH | Quote | Chart | News | PowerRating) | 23 | 61.83 | 3,006,000 | 2,000,000 |
| Texas Instruments | ( TXN | Quote | Chart | News | PowerRating) | 42 | 16.05 | 12,816,000 | 16,757,000 |
class=890430920-15102001>Texas
Instruments is an example of a mid level intraday Slim Jim. The
stock closed up slightly on the session but has continued to show relative
weakness on an intraday and daily basis.
Â
Best of luck with your trading Monday. Please use
protective stops on trades.