Monday’s Top Stocks
Some “applied” pressure from Applied Materials had the
semiconductor sector once again looking like the Red Sox at the open
of trade in Friday’s session. But
the Sox still have a hardcore fan base, and quite literally, in a
one-for-one market capitalization swap, investors stepped up to the
batter’s box in Rambus, sending it straight out of the ballpark in
homerun-type fashion for the third day in a row (congratulations to
those who participated…and btw RMBS, 16+ in after-hours trading. A
nice call by one of our TM umpires in the chatroom).
Despite the early drubbing
in the semiconductor sector
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), the DIAs and SPYs
essentially did no worse than a retest of prior lows and their 62%
Fibonacci retracement levels and managed to close strong on the day,
up nearly 2%. The QQQs, with help from weakness in the semis, finally
tested the December pivot and 50% level, before reversing to close off
slightly, down .10. The SMH also held on remarkably well, down about a
percentage point. Today’s price gap down sent the sector through
“my” neckline decidedly and has the sector closing right at
that “decision point.”
Will investors decide to
show some more love in the semis like they did in the two broader
averages? Over the weekend I’m sure the big boys, with the big bats,
can mull the “decision point” over, and then decide whether
or not upgrades or downgrades are in order. Bargain Hunting or
concerns over the economy will surely follow as the flavor-of-the-day
headline excuse after Monday’s session. I’m not sure which, but the
one thing that’s for sure, always keep ready with your list of the
best stocks to trade for whichever headline overwhelms the market in
that day’s trade.
Hottest Sectors (HOLDRs):
Retail
(
RTH |
Quote |
Chart |
News |
PowerRating) and Pharmaceuticals
(
PPH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors (HOLDRs):
Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) and Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Monday’s 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.
|
Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Abercrombie & Fitch |
( ANF | Quote | Chart | News | PowerRating) |
93 | 27.77 | 1,721,000 | 2,426,000 |
| Fair Isaac |
( FIC | Quote | Chart | News | PowerRating) |
90 | 49.75 | 438,000 | 592,000 |
| SAP Aktiengesell |
( SAP | Quote | Chart | News | PowerRating) |
83 | 23.50 | 1,541,000 | 2,388,000 |
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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.
None Today.
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.
|
Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Teva Pharmaceuticals |
( TEVA | Quote | Chart | News | PowerRating) |
97 | 38.40 | 2,522,000 | 1,822,000 |
| AdvancePCS | ( ADVP | Quote | Chart | News | PowerRating) |
83 | 29.06 | 1,339,000 | 1,605,000 |
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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.
|
Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Hotels.com | ( ROOM | Quote | Chart | News | PowerRating) |
5 | 40.14 | 1,182,000 | 1,145,000 |
| Northern Trust |
( NTRS | Quote | Chart | News | PowerRating) |
29 | 34.23 | 1,321,000 | 1,486,000 |
Stocks in Slim Jims
High
RS Slim Jims.
Stocks
are scanned from 3 Month RS of 80 or higher and TM’s Proprietary and
Technology 10 Momentum lists on the Indicators page.
|
Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Wallace Computer |
( WCS | Quote | Chart | News | PowerRating) |
93 | 26.67 | 628,000 | 664,000 |
| Macromedia | ( MACR | Quote | Chart | News | PowerRating) |
93 | 14.65 | 755,000 | 830,000 |
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Weak
RS Slim
Jims.
Stocks
are scanned from 3 Month RS of 35 or lower and TM’s Implosion and
Technology Implosion Lists on the Indicators page.
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. Patterns
include 1,2,3s and Slim Jim consolidations. Background supports in the
form of Fibonacci levels, EMAs, and former price supports are used in
the decision making process.
|
Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Anglogold | ( AU | Quote | Chart | News | PowerRating) |
85 | 35.22 | 1,142,000 | 1,130,000 |
| Storage Technology |
( STK | Quote | Chart | News | PowerRating) |
79 | 22.10 | 906,000 | 663,000 |
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Low
RS Reversal Patterns.
Stocks with 3 Month RS of 35
and / or Institutional Favorites that are setting up on a closing
basis as potential short reversal pattern candidates. Patterns include
1,2,3s and Slim Jim 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.
|
Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Cardinal Health |
( CAH | Quote | Chart | News | PowerRating) |
14 | 58.36 | 2,902,000 | 2,344,000 |
Cardinal
Health is an example of a Low RS stock setting up with a potential
reversal pattern in the form of a High Level Slim Jim. Daily chart
resistance is confirmed by the 13-Day EMA, and a downtrend resistance
line drawn from January 9th to January 16th.
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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
|
Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Oracle | ( ORCL | Quote | Chart | News | PowerRating) |
74 | 12.03 | 43,855,000 | 48,068,000 |
| EchoStar | ( DISH | Quote | Chart | News | PowerRating) |
86 | 25.85 | 4,204,000 | 3,975,000 |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
80 | 75.16 | 6,245,000 | 6,513,000 |
| Hewlett Packard |
( HPQ | Quote | Chart | News | PowerRating) |
57 | 17.41 | 12,459,000 | 26,569,000 |
| Linear Technology |
( LLTC | Quote | Chart | News | PowerRating) |
32 | 26.13 | 6,776,000 | 10,255,000 |
| Xilinx | ( XLNX | Quote | Chart | News | PowerRating) |
39 | 19.83 | 10,141,000 | 13,805,000 |
| Cognizant Technology |
( CTSH | Quote | Chart | News | PowerRating) |
20 | 60.29 | 681,000 | 2,057,000 |
| Autozone | ( AZO | Quote | Chart | News | PowerRating) |
13 | 65.71 | 1,646,000 | 1,735,000 |
Institutional
Laggards.
|
Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Chiron | ( CHIR | Quote | Chart | News | PowerRating) |
35 | 37.50 | 1,745,000 | 2,058,000 |
| Costco | ( COST | Quote | Chart | News | PowerRating) |
18 | 28.90 | 6,002,000 | 5,279,000 |
| Intuit | ( INTU | Quote | Chart | News | PowerRating) |
21 | 44.15 | 2,939,000 | 4,249,000 |
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Best of luck with your
trading everyone. Please use protective stops on trades.
Chris
PS Check out my new
module.