Friday's Top Stocks From TradersWire

The market sold off shortly after 12:30 on the news bonds issued by General Motors (GM) and Ford Motor (F) were downgraded to junk status. Look at the 15-minute chart of the S&P 500 Index below. It formed a double bottom and closed just below the 61.8% retracement level. It was encouraging to see the market regained most of the losses.



Employment numbers will be released on Friday morning at 8:30. Here are analysts' expectations:

Nonfarm Payrolls: 175K
Unemployment Rate: 5.2%
Hourly Earnings: +0.2%
Average Workweek: 33.7

The Dow Jones Industrial Average could not take out the 200-day EMA, and the Nasdaq Composite Index finished below a resistance line again.





Now, three stocks for Friday:

VERITAS Software (VRTS): The issue failed to move above a gap zone and closed poorly. Short VRTS if it slips below 21.25. The initial target is near 20. Risk 50 cents.



MicroStrategy (MSTR): The stock is pulling back from the April 29 low. Short MSTR if it trades below 47.30. The initial target is 46. Risk 50-60 cents.



Dominion Resources (D): The issue bounced off a declining trendline and formed a bullish tail. Long D if it moves above 72.70. The initial target is near the 50-day EMA (73.70). Risk 50 cents.



If you have questions, feel free to mail them to me.