Friday's Top Stocks

It's simply amazing how it comes about. The ETFs all surge higher to critical resistance levels, only to 'reverse hard' on the initial test, and then the rumors seemingly pop up from nowhere...or better yet, from somebody's trading desk. Today's show was courtesy of Fleetwood Mac. Both their album 'Rumours', and the song, 'Tell me lies...' sum up the apparent intraday selloff due in part to an 'erroneous' order by a major brokerage firm. Going into the final hour of trade (sorry folks, Ranger Chris has left the park early) the market proxies are up between .10% and .65% on moderate trade and positive market breadth, giving this smoke detector the go ahead to leave the park during normal operating hours. 

Let me tell you something, Triumph The Insult Dog would definitely be insulted. In an overbought market, smack into key daily resistance levels in our ETF friends, who really needs a rumor to poop on the market? 'Yes, yes, that's right folks...it's quite a show.' The confirmed rally is in place, but with an overbought condition, and low implied volatility readings, there are definitely reasons in place, not rumors, to make the market act silly. But, just because the market may be acting silly, doesn't give you the reason to stop making sense. Stick with what got you there in the first place, namely disciplined, consistent daytrading.

I might not be there every day, but doesn't mean the fun has to stop. If you continue to stick to the High and Low RS issues and watch for the classic reversal and continuation patterns to trigger, you'll find that it's just as enjoyable as a walk in the park.

Please note that the following selections and prices are on an intraday basis.

Volatility Readings:

Hottest Sectors : Semiconductors (SMH | Quote | Chart | News | PowerRating) and Internet (HHH | Quote | Chart | News | PowerRating)

Weakest Sectors : Gold/Silver (XAU) and Pharmaceuticals (PPH | 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

Short Reversals Closing Basis.

Name	Symbol	Price	Technical Strength	Average Volume	Today's Volume

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
Johnson & Johnson	(JNJ | Quote | Chart | News | PowerRating)	49.38	8,272m	6,954m
Procter Gamble	(PG | Quote | Chart | News | PowerRating)	86.82	3,309m	2,516m

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

Chris Tyler