What I Saw Today: That's Not Profit-Taking In Tech
Monday March 8, 5:30 pm ET
By Chris Tyler
TradingMarkets.com
Appar,ently 'they', the smart money, has been rotating out of tech, according to well-informed sources within Wall Street's media machine. You know, I really hate when Mondays' usher in such hard hitting stories that catch a guy off guard--thank god today's news didn't qualify. On the session though, 'more' distribution in the Nasdaq Composite took that index proxy down 1.90%, on a second session of increased, above-average trade. The S&P500 was also, off, although the milder .74% loss on lighter, below-average trade might have some bulls feeling pretty secure about their market-weighted holdings. Now investors are pinning their hopes on the sheriff of the semiconductor sector, Texas Instruments (TXN)--to stop the stampede out of tech-town and hopefully become something legends are made of...'oh yahoo.'
Well here we are again, or at least almost--reversal zones abound in many tech issues, as well as the index and sector pro,xies such as the semiconductors (SMH) and Nasdaq 100 (QQQ). I guess we'll just have to wait until tomorrow to find out if the promise can deliver. Personally, I'd be a whole lot more excited about potential set ups if the S&P500 could stampede some bulls down to the 50-Day MA zone, and also if I knew for certain that when I call for the market to bottom, that the market would actually respect my authority (South Park). Of course, in the real world things are rarely perfect--but that's what makes the ga,me fun, and all the more reason to keep sticking with our consistent, disciplined brand of daytrading.
Volatility Readings:
Volatility Index Close Net Change Signals/Direction % Above/Below 10 Day Moving Average Significance
VXO (CBOE:^VXO - News) 15.30 up .50 na 4% above not at extreme
V,XN (CBOE:^VXN - News) 24.02 up 1.94 cvn 2 sell 4% above not at extreme
Hottest Sectors : Telecom (AMEX:TTH - News)
Weakest Sectors : Semiconductor (AMEX:SMH - News)
Tuesday's stocks to watch:
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Technical Strength Top of Range. Stocks are scanned from TM's Proprietary and Technology 10 Momentum lists on the Indicators page, as well as being hand selected, based on the most recent technical action. This may include some or all of the following: abnormal volume, price patterns, as well as bullish action off of technical price supports or clearance of technical resistance in that day's session.
N,ame Symbol Price Technical Strength Average Volume 000's Today's Volume
California Amplifier (NasdaqNM:CAMP - News) 16.75 Top of range close on increased, above-average (IAA) volume b/o attempt of two month daily consolidation 415 1,527
Draxis Health (NasdaqNM:DRAX - News) 5.10 Top of range close on volume surge within eight week basing pattern 345 1,478
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Technical Weakness Bottom of Range. Stocks are scanned from TM's Implosion and Technology Implosion Lists on the Indicators page, as well as being hand selected, based on the most recent technical action. This may include some or all of the following: abnormal volume, price patterns, as well as bearish technical action at key support, or resistance levels based on closing prices.
N,ame Symbol Price Technical Strength Average Volume 000's Today's Volume
Varian Semi (NasdaqNM:VSEA - News) 39.69 Low of day close on IAA volume engulfing bearish bar 794 1,142
MGIC Investment (NYSE:MTG - News) 64.50 Relative volume b/d of daily chart technical supports 920 780
Wellpoint Health (NYSE:WLP - News) 111.44 Bottom of range consolidation within inside bar on daily, after Hangman topping pattern 851 625
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Stock Reversal Setups Closing Basis. Stocks that are setting up on a closing basis as potential long or short 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 basing patterns (Slim Jims, 1,2,3s, Double bottoms) consolidations, and tri,angle reversals. Background technical supports in the form of Fibonacci levels, EMAs (DEMA=daily ema), RS, and former price action are used in the decision making process.
Long Reversals Closing Basis. Name Symbol Price Technical Strength Average Volume 000's Today's Volume
NA NA NA NA NA NA
Sh,ort Reversals Closing Basis. Name Symbol Price Technical Strength Average Volume 000's Today's Volume
NA NA NA NA NA NA
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 w,eakness, patterns (consolidations or Slim Jims) , or last hour volume surges, indicative of follow through in the very near term.
Institutional Favorites Name Symbol Price Average Volume 000's Today's Volume
eBay (NasdaqNM:EBAY - News) 69.83 7,042 14,252
Verizon (NYSE:VZ - News) 39.30 7,463 5,622
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Institutional Laggards. Name Symbol Price Average Volume 000's Today's Volume
Caterpillar (NYSE:CAT - News) 76.89 2,516 2,849
Dell (NasdaqNM:DELL - News) 31.20 17,123 26,404
Best of luck to everyone. Please use protective stops on all trades.
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P.S. You can find more analysis from me at www.tradingmarkets.com.
Chris Tyler
biz.yahoo.com
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