Monday's Top Stocks

So, what did you expect, that the market was going to finally make it easy? If I had access to the' laughing emoticon' that people use when they're instant messaging friends during business hours, it would be very appropriate to slap it up here right about now. With no real 'market moving news' to report, our ETF friends, the Spyders (SPY | Quote | Chart | News | PowerRating), NASDAQ100 (QQQ | Quote | Chart | News | PowerRating), and the Diamonds (DIA | Quote | Chart | News | PowerRating) decided to put on a little show for the investing audience today, by tap dancing around the unchanged mark. The index proxies spent the better part of the day first treading slightly above water, and then, treading slightly below water as we headed into the last hour of trade. But, maybe more importantly, this little dance also has the averages sitting very close to the same levels as last Friday, and the Friday before that.

How about them apples, the last hour extended our little dance into one gigantic sized waltz. Can you say consolidation? With the closing numbers for the ETFs coming in between -.06% and -.36%, on lighter trade, and lackluster, neutral market breadth statistics, it sure seems like the three amigos most certainly can.

Well, the first regularly scheduled time cycle top didn't work (for you time cycle technicians out there), so maybe we'll have to wait until the end of the month, as the big boys do their darndest to keep the quarterly numbers looking nice and sprightly. What do I think, you ask? As I've said previously, I respect price and volume first, and that's telling me to tread lightly right now. Stocks are setting up on the weeklies, but without a doubt some of our high flying friends are in the midst of 'pulling back'...ouch!! We are 'still' in a 'confirmed uptrend', but in my opinion it does feel as though some of our recent members that have just subscribed to the bull club might be put out to pasture, if they don't watch their step. Remember, when the fields are green and there's bulls running around, you know there's gonna be some 'stuff' spotting the playing field, so just be careful. But, more important to me when it comes right down to it, I just say thank you each and every day for the opportunity to daytrade.

I'll say it again, bulls make money, bears make money, and pigs get slaughtered. Daytrading is no exception to the rule. The nice part about it is that by trading high-probability reversal and continuation patterns on our list of relative strength stocks, we can participate successfully, each and every day, even if Mr. Market is deciding to stand pat for the time being.

Volatility Readings:

Hottest Sectors :  Biotechs (BBH | Quote | Chart | News | PowerRating) and Telecomm (TTH | Quote | Chart | News | PowerRating)

Weakest Sectors : Homebuilders ($HGX.X | Quote | Chart | News | PowerRating) and Semiconductors (SMH | Quote | Chart | News | PowerRating)

Friday's stocks to watch:

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.

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.

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 triangle 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	Today's Volume
Talk America	(TALK | Quote | Chart | News | PowerRating)	10.78	Hammer reversal off daily technical supports on volume	456k	1,151m

Short Reversals Closing Basis.
None Today.

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, patterns (consolidations or "Slim Jims") , or last hour volume surges, indicative of follow through in the very near term.

Institutional Favorites.

Institutional Laggards.

Name	Symbol	Price	Average Volume	Today's Volume
Lehman	(LEH | Quote | Chart | News | PowerRating)	70.60	2,531m	3,925m
Cree	(CREE | Quote | Chart | News | PowerRating)	17.24	2,913m	2,459m

Best of luck to everyone. Please use protective stops on all trades.

Chris Tyler