Here’s Thursday’s Names…
Things are
definitely taking shape and earnings season seems to be going
okay…so far. Unfortunately, things took a step back today, which is to be
expected in light of the short-term overbought situation we are in. Looking for
leadership by using the TradingMarkets New High/New Low list still has us in a defensive stance. Why?
Well, we need to see further
confirmation, such as improving breadth, as well as successful breakouts of fundamentally
sound growth stocks which can sustain moves past their pivot points. Yes, the
markets are improving. However, we still remain patient as news still continues
to weigh heavily on traders’ minds (as we saw in Wednesday’s session with the continuing anthrax
situation).
The Nasdaq Composite closed 4.40%
lower on a 23.65% increase in volume from the day earlier. Clearly, a
distribution day, but as we stated earlier, we should have
expected a lower day, especially with the short-term overbought situation the
markets were in.
Some stocks to look at that may be showing some nice price patterns, as well as fundamentals, Spectralink
(
SLNK |
Quote |
Chart |
News |
PowerRating)
which is working on
a handle of a 17+ month base. The telecommunications equipment company has been
showing some excellent growth and sales numbers over the last four quarters.
Earnings for the company are scheduled to be reported on October 20.
Dianon Systems
(
DIAN |
Quote |
Chart |
News |
PowerRating) is working
on a 14-week base. The medical testing company has a five-year earnings growth
rate of 28% with some nice earnings and sales growth over the last four quarters.
Other names which also look interesting.
Stocks Breaking
out on High Volume with a Relative Strength of 80 or Better:
| Company Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Mcafee.com | ( MCAF | Quote | Chart | News | PowerRating) |
98 | 21.90 | 306,600 | 1,203,600 |
Stocks Building
A Base With A Minimum Relative Strength of 80.
| Company Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Dianon Systems | ( DIAN | Quote | Chart | News | PowerRating) |
82 | 43.50 | 113,000 | 66,100 |
| First Horizon Pharmaceuticals |
( FHRX | Quote | Chart | News | PowerRating) |
95 | 26.00 | 323,900 | 194,000 |
Stocks forming a
Handle
| Company Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Movie Gallery |
( MOVI | Quote | Chart | News | PowerRating) |
99 | 22.16 | 509,100 | 225,800 |
| Multimedia Games |
( MGAM | Quote | Chart | News | PowerRating) |
98 | 20.80 | 171,100 | 547,300 |
What a difference a day makes.
Yesterday we had all major sectors in the green. However, in Wednesday’s session
we only had one…the Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), which gained
1.4%.
Leading the sectors in the red was the
Interactive Week Internet
(
$IIX.X |
Quote |
Chart |
News |
PowerRating), which slid 7.7%.
That was followed by the Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
closing 7.3%.
Also closing lower was the
Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), which lost 5.6%.
Remember that all securities are
risky. In any trade, you should always reduce your risk by adjusting position
size and placing open protective stops where you will sell your long or
cover your short in case the market turns against you.