Here Are Tuesday’s Top Names
Traders came into the
first full week of the year with their trigger fingers
wearing down the buy keys,
as all of the ETFs experienced strong percentage increases across the board. As
Iraq said that it was “ready” for war, Wall Street came out and said
it was confident in the US equity markets. In the pre-market, JP Morgan showed
its vote of confidence in the form of an upgrade of US equities, while
Deutsche chimed in with a sector upgrade of the semiconductors.
Throw in a
larger-than-expected stimulus plan ($600 billion) out of Washington ("In Texas
we always liked to do it bigger," — thank you, Mr. President), and voila, the ETFs were essentially in rally mode all day long. Volume indicated a day of
accumulation, and although it did pick up over last week’s activity, it is still
below average.
Today’s trade had the ETFs
retracing the 70% benchmark in the SPYs and DIAs from the December highs, while
the QQQs were able to test the 50% level. Not too long ago, actually three
sessions ago, we were testing multi-week lows and everyone was talking about
distribution and monthly head-and-shoulder patterns. With quite literally two
days registering large percentage gains (out of three) into awareness zones of
resistance, and confirming CVR signals, I am ready for reversal setups to
trigger.
The ETFs finished off their best levels and still favor upside
momentum, but with price now extended, and volume stronger, but not registering
off-the-wall demand, I’ll keep long entries ready if demand continues to pick
up, but otherwise we’ll be looking to sit down once the music stops. It’s simply
amazing how quickly the Street can change its tune. They’re the most musical
people I know, except that they’re not musicians, but rather gamesmen, and this
is a game of musical chairs, not a show tune (although a show is definitely
being orchestrated for your viewing pleasure). As always, the best way to
do this is to stay prepared and ready to trade those stocks that best fit the occasion,
according to relative strength, pattern, and volume.
Have a good night.
Hottest Sectors (HOLDRs): Telecommunications
(
TTH |
Quote |
Chart |
News |
PowerRating) and Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors (HOLDRs): Retail
(
RTH |
Quote |
Chart |
News |
PowerRating) and Oil
Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
Tuesday’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>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Avocent Corp | ( AVCT | Quote | Chart | News | PowerRating) | 91 | 24.78 | 544,000 | 706,000 |
| Network Associates | ( NET | Quote | Chart | News | PowerRating) | 94 | 18.40 | 2,859,000 | 2,050,000 |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) | 85 | 44.07 | 7,141,000 | 17,800,000 |
| Novellus | ( NVLS | Quote | Chart | News | PowerRating) | 83 | 33.56 | 10,965,000 | 12,014,000 |
Weak RS issues closing in
Bottom of Range.
Stocks
are scanned from 3 Month RS of 30 or lower and TM’s Implosion and Technology
Implosion Lists on the Indicators page.
None Today.
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>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Agilent | ( A | Quote | Chart | News | PowerRating) | 89 | 19.96 | 2,513,000 | 3,959,000 |
| JetBlue | ( JBLU | Quote | Chart | News | PowerRating) | 95 | 28.55 | 1,070,000 | 773,000 |
| Symantec | ( SYMC | Quote | Chart | News | PowerRating) | 84 | 3,120,000 | 3,120,000 | 3,507,000 |
| Advanced Fibre Communications | ( AFCI | Quote | Chart | News | PowerRating) | 82 | 17.81 | 1,075,000 | 1,073,000 |
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>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) | 8 | 52 | 5,693,000 | 5,662,000 |
| Autozone | ( AZO | Quote | Chart | News | PowerRating) | 12 | 71.06 | 1,299,000 | 2,426,000 |
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.
size=2>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Storage Technology | ( STK | Quote | Chart | News | PowerRating) | 95 | 24.53 | 780,000 | 1,103,000 |
| Boston Scientific | ( BSX | Quote | Chart | News | PowerRating) | 72 | 44.60 | 2,180,000 | 2,513,000 |
| Affiliated Computer | ( ACS | Quote | Chart | News | PowerRating) | 84 | 56.20 | 1,497,000 | 1,978,000 |
| BMC Software | ( BMC | Quote | Chart | News | PowerRating) | 84 | 18.55 | 1,848,000 | 1,903,000 |
Weak RS Slim Jimsclass=890430920-15102001>.
class=890430920-15102001>Stocks
are scanned from 3 Month RS of 20 or lower and TM’s Implosion and Technology
Implosion Lists on the Indicators page.
size=2>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| **Kohls | ( KSS | Quote | Chart | News | PowerRating) | 16 | 55.65 | 3,507,000 | 3,489,000 |
| Payless | ( PSS | Quote | Chart | News | PowerRating) | 16 | 49.47 | 262,000 | 895,000 |
| Applied Biosystems | ( ABI | Quote | Chart | News | PowerRating) | 12 | 17.08 | 1,165,000 | 1,862,000 |
class=890430920-15102001>**Kohls
is an example of a Weak RS stock forming a Slim Jim in the lower part of the
intraday trading range (closing price <50% mark)
Institutional Favorites.
The following stocks are selected from
the NASDAQ, S&P500 & 600 Indices. These are heavily traded issues that
are exhibiting strength, pattern (Slim Jims), or last hour volume surges
indicative of follow through.
size=2>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) | 77 | 72.99 | 5,431,000 | 13,156,000 |
| Xilinx | ( XLNX | Quote | Chart | News | PowerRating) | 83 | 24.24 | 10,493,000 | 10,957,000 |
| Paychex Inc | ( PAYX | Quote | Chart | News | PowerRating) | 73 | 29.98 | 2,791,000 | 3,406,000 |
| Bed Bath & Beyond | ( BBBY | Quote | Chart | News | PowerRating) | 65 | 36.08 | 3,464,000 | 2,664,000 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) | 95 | 18.94 | 9,936,000 | 10,594,000 |
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.
size=2>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Tyco | ( TYC | Quote | Chart | News | PowerRating) | 75 | 16.53 | 13,129,000 | 27,000,000 |
| Walgreens | ( WAG | Quote | Chart | News | PowerRating) | 53 | 31.49 | 3,938,000 | 4,800,000 |
Best of luck with your trading Tuesday. Please use
protective stops on trades.