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Thursday’s Top Stocks

  • May 7, 2003
  • Chris Tyler

‘Relax, and take a deep breath…’

I’m not sure if those are the exact words,
but the message of reassuring confidence from the Charles Schwab commercial
where anxious investors are asking very demanding questions about the market’s
next move seemed very appropriate after the last two sessions. Today’s action
was marked by narrowing volatility as the ETFs closed lower in “doji” fashion.
Our three index proxies finished down between .25 and 1% on heavy volume, with
decliners taking a slight lead over advancing issues in Wednesday’s trade.

Not exactly the pullback that I was referring to
yesterday, but it’s a step in the right direction. The SPYs and QQQs are off
their best levels in many months by 1% or 2%, while the lagging DIAs
managed to pretty much keep most of their gains intact. Today brought about some
more consolidation, or downward action in some of our High RS stocks. That’s
good action, and the starting point for buying strength on weakness, or
pullbacks, such as the 3-Day Simple pullback method or other techniques outlined
by our resident “swinger” Dave
Landry. 

I’d personally like to see a bit more of this very constructive
action, without violating recent price supports such as trendlines, Fibonacci’s,
and Institutional support levels such as the 200 and 50 moving averages. On a
final note, in my opinion there’s been a tad too much of ‘dot com fever’ hitting
some our lower price issues as of late too, i.e., TheGlobe.com
(
TGLO |
Quote |
Chart |
News |
PowerRating).
As far as this particular party is concerned, I’d welcome some Excedrin type of
action before we take the next leg higher in the broader market averages.

While investors and position traders might have
some concern as to whether their recent bullish tracks are going to leave an
easy mark for the market’s resident bear, as daytraders our one concern is much
simpler. By
preparing our list of High and Low RS issues each night, and then watching to
see which suit the market will be wearing in tomorrow’s trade, we can trade
consistent intraday setups from either side, regardless of which one of our
favorite animal friends decides to drop in on us.

Hottest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
and Broker / Dealers
(
$XBD.X |
Quote |
Chart |
News |
PowerRating)


Weakest Sectors : Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating) and Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)


Thursday’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.




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size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength 		class=890430920-15102001> size=2 Helvetica face=”Arial”>Price class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

Artisan Components


(
ARTI |
Quote |
Chart |
News |
PowerRating)
83
21.05
304K
2,824M

Centex

(
CTX |
Quote |
Chart |
News |
PowerRating)
76
67.40
1,220M
1,314M

class=890430920-15102001>
Network Appliance
class=890430920-15102001>

(
NTAP |
Quote |
Chart |
News |
PowerRating)
class=890430920-15102001>
83
class=890430920-15102001>
15.18
class=890430920-15102001>
7,049M
class=890430920-15102001>
7,415M




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.

class=890430920-15102001>



























size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength 		class=890430920-15102001> size=2 Helvetica face=”Arial”>Price class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

HCA


(
HCA |
Quote |
Chart |
News |
PowerRating)
4
31.78
5,603M
5,508M

j2 Global

(
JCOM |
Quote |
Chart |
News |
PowerRating)
44
27.00
604K
847K

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.




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class=890430920-15102001>









size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength 		class=890430920-15102001> size=2 Helvetica face=”Arial”>Price class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

Hyperion Solutions


(
HYSL |
Quote |
Chart |
News |
PowerRating)
71
30.29
758K
923K

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.


None Today.



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 face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength 		class=890430920-15102001> size=2 Helvetica face=”Arial”>Price class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

Halliburton


(
HAL |
Quote |
Chart |
News |
PowerRating)
66
23.40
3,978M
6,100M

Manhattan Associates

(
MANH |
Quote |
Chart |
News |
PowerRating)
64
24.75
702K
287K





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.

class=890430920-15102001>

None Today.



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

short or long reversal pattern
candidates. Candidates listed may have triggered on a closing basis, or close to
triggering ( my general rule is to list the pattern setup if it is within +/-.15
of trigger price). Patterns include 1,2,3s
,Slim Jim (SJ)
consolidations, and Triangles. Background
supports in the form of Fibonacci levels, EMAs (DEMA=daily ema), and former price supports are
used in the decision making process.




class=890430920-15102001>











class=890430920-15102001>





















size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength 		class=890430920-15102001> size=2 Helvetica face=”Arial”>Price Direction Pattern
Type		 class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume
Semiconductor
HOLDRs
(
SMH |
Quote |
Chart |
News |
PowerRating)		 77 27.44 LONG 123
Intraday off of daily price supports		 6,547M 5,682M

class=890430920-15102001>
Genzyme
class=890430920-15102001>

(
GENZ |
Quote |
Chart |
News |
PowerRating)
class=890430920-15102001>
76
class=890430920-15102001>
39.52

 class=890430920-15102001>LONG

 class=890430920-15102001>Narrow Range Bar/3-Day
Simple pullback w/ intra sym.triangle bottom		 class=890430920-15102001>3,448M class=890430920-15102001>2,923M

class=890430920-15102001>Low RS
Reversal Patterns.

Stocks with 3 Month RS of 35 and / or
Institutional Favorites that are setting up (within .15 of trigger) on a closing basis as potential

short or long reversal pattern
candidates. Patterns include 1,2,3s and Slim Jim (S.J.) 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.




class=890430920-15102001>











class=890430920-15102001>





















size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength 		class=890430920-15102001> size=2 Helvetica face=”Arial”>Price Direction Pattern
Type		 class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume
Transocean
(
RIG |
Quote |
Chart |
News |
PowerRating)		 9 19.73 LONG SJ off
3-Day Haggerty Wake Up Call		 2,855M 6,511M

class=890430920-15102001>
Bausch & Lomb
class=890430920-15102001>

(
BOL |
Quote |
Chart |
News |
PowerRating)
class=890430920-15102001>
29
class=890430920-15102001>
33.13

 class=890430920-15102001>LONG

 class=890430920-15102001>123 off 200 Day SMA &
50% Fibonacci		 class=890430920-15102001>617K class=890430920-15102001>3,174M


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 face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength 		class=890430920-15102001> size=2 Helvetica face=”Arial”>Price class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

Amazon

(
AMZN |
Quote |
Chart |
News |
PowerRating)
86
30.70
9,046M
10,339M

Checkpoint Software

(
CHKP |
Quote |
Chart |
News |
PowerRating)
75
17.48
3,142M
6,258M

Merrill Lynch

(
MER |
Quote |
Chart |
News |
PowerRating)
68
42.90
6,222M
13,068M

Echostar

(
DISH |
Quote |
Chart |
News |
PowerRating)
81
33.60
4,073M
7,903M

Institutional
Laggards.



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class=890430920-15102001>

















size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001>Relative
Strength 		class=890430920-15102001> size=2 Helvetica face=”Arial”>Price class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

Qualcomm

(
QCOM |
Quote |
Chart |
News |
PowerRating)
10
31.94
14,791M
15,539M

3M Company

(
MMM |
Quote |
Chart |
News |
PowerRating)
12
121.51
class=890430920-15102001>
2,820M
3,297M

Microchip Technology

(
MCHP |
Quote |
Chart |
News |
PowerRating)
36
21.12
5,272M
7,108M

Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.


P.S. I’ve
just released a new trading module on Intraday Breakouts. If
you’d like more information, click
here.