Wednesday’s Top Stocks
It certainly looks good
on paper, but isn’t “hope” still considered a four-letter word in the
technicians handbag? The ETFs
rallied in unison today, as if joined at the hip. The SPYs, DIAs and QQQs
were up between .75% and 1% on corporate and economic news, ahead of the much
anticipated State of the Union Address. Now all we have to do is hold our
collective breathe and “hope” (that’s the word I heard on more than one
occasion) that President Bush does the right thing. Personally, I have no idea
what that may be, all I know is that the market participants will let us know
what they’re thinking in tomorrow’s session.
The ETFs all finished in the green on
the session, as trade contracted into what we technicians call an inside day
(ok, so the QQQs pushed .02 through yesterday’s high, so shoot me, just don’t
kill the market). This leaves the DIAs and SPYs wedged between the 50% and 62%
Fibonacci levels. Support is in place with volatility reversing decidedly in the
VIX (CVRs II, III and VI), which suggests more than a one-day rally. We are
oversold, but remember that doesn’t give us a license to go and pick up roadkill.
As always, focus on the best stocks, those issues that demonstrate leadership in
either direction, so regardless of what happens tomorrow morning, we don’t have
to use “hope” as part of our trading success.
Hottest Sectors (HOLDRs): Utilities
(
UTH |
Quote |
Chart |
News |
PowerRating) and Pharmaceuticals
(
PPH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors (HOLDRs): Telecom
(
TTH |
Quote |
Chart |
News |
PowerRating)
and Retail
(
RTH |
Quote |
Chart |
News |
PowerRating)
Wednesday’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 |
| Mercury Interactive | ( MERQ | Quote | Chart | News | PowerRating) | 91 | 37.02 | 3,621,000 | 3,632,000 |
| Fair Isaac | ( FIC | Quote | Chart | News | PowerRating) | 87 | 48.45 | 410,000 | 818,000 |
| ADTRAN | ( ADTN | Quote | Chart | News | PowerRating) | 84 | 33.68 | 710,000 | 743,000 |
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.
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 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 |
| Hyperion Solutions | ( HYSL | Quote | Chart | News | PowerRating) | 78 | 29.13 | 602,000 | 1,677,000 |
| Storage Technology | ( STK | Quote | Chart | News | PowerRating) | 86 | 23.16 | 886,000 | 661,000 |
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 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) | 4 | 42.77 | 1,140,000 | 640,000 |
| Home Depot | ( HD | Quote | Chart | News | PowerRating) | 7 | 20.53 | 17,691,000 | 13,689,000 |
| Sandisk | ( SNDK | Quote | Chart | News | PowerRating) | 4 | 15.43 | 3,643,000 | 3,399,000 |
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 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 |
| CheckFree | ( CKFR | Quote | Chart | News | PowerRating) | 85 | 19.68 | 1,399,000 | 1,646,000 |
| Silicon Laboratories | ( SLAB | Quote | Chart | News | PowerRating) | 86 | 24.10 | 1,317,000 | 1,272,000 |
class=890430920-15102001>
CheckFree
is forming a 3 to 4 session Slim Jim formation approx. .70 wide.
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 |
| Kraft | ( KFT | Quote | Chart | News | PowerRating) | 22 | 36.20 | 1,547,000 | 2,128,000 |
| Tech Data | ( TECD | Quote | Chart | News | PowerRating) | 11 | 25.54 | 1,006,000 | 545,000 |
class=890430920-15102001>
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.
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 |
| Applebee’s | ( APPB | Quote | Chart | News | PowerRating) | 41 | 24.14 | 470,000 | 513,000 |
class=890430920-15102001>Applebee’s
is forming a low level Slim Jim. Background evidence for support is the 38%
Fibonacci retracement from the October lows, proper alignment of the 13,
50, and 200-Day EMAs, as well as nine consecutive down days.
class=890430920-15102001>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.
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 Computer | ( DELL | Quote | Chart | News | PowerRating) | 15 | 24.80 | 24,994,000 | 25,293,000 |
| Chiron | ( CHIR | Quote | Chart | News | PowerRating) | 41 | 38.19 | 1,718,000 | 1,642,000 |
| Paychex | ( PAYX | Quote | Chart | News | PowerRating) | 17 | 25.47 | 2,685,000 | 3,269,000 |
class=890430920-15102001>
Dell
Computer and Chiron are examples of 1,2,3 reversal setups to the short side.
class=890430920-15102001>Paychex
is a high level Slim Jim, in this case qualified for short entries below 25.40.
Volume was strong on the session, which is a negative for shorts, but I like the
5 min. divergence in stochastics (8,3,3), along with the volume spike took out
much of the afternoon’s pattern work. There is also proper alignment of the
13,50, and 200-Day EMAs. As always wait for a pattern setup, and use of
stops is mandatory.
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 |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) | 61 | 37.14 | 14,009,000 | 10,963,000 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) | 78 | 18.64 | 9,708,000 | 8,842,000 |
| Nextel | ( NXTL | Quote | Chart | News | PowerRating) | 83 | 13.10 | 18,875,000 | 18,583,000 |
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 |
| Target | ( TGT | Quote | Chart | News | PowerRating) | 13 | 27 | 5,167,000 | 6,575,000 |
| Intel | ( INTC | Quote | Chart | News | PowerRating) | 49 | 16.02 | 59,076,000 | 58,511,000 |
| Staples | ( SPLS | Quote | Chart | News | PowerRating) | 62 | 17.11 | 4,744,000 | 3,419,000 |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) | 24 | 48.82 | 34,327,000 | 43,198,000 |
Best of luck with your trading
Wednesday. Please use
protective stops on trades.