Thursday’s Top Stocks From TradingMarkets

Research in Motion (RIMM)
lost nearly 10 percent of its value,
downgraded by UBS, and closed at
its 20-day moving average. Look at extremely heavy volume! Every time when I see
a chart like this, it reminds me the importance of placing proper stops on all
of my opening positions.

Diamonds Trust (DIA) finally took out its 50-day MA decisively. Needless
to say, it still has the 200-day MA to overcome. Nasdaq-100 Index Tracking
Stock
(QQQ) gained 0.67 percent, but it failed to move above the June 30
high.

Let’s see three stocks for Thursday:

General Motors (GM): The issue succumbed to a gap zone and closed poorly.
Short GM if it trades below 38.63. Target is near 37. Place a stop just above
the 20-day MA (39.17), or risk one point.

Cree Inc (CREE): The stock formed a bearish engulfing bar on heavy
volume. Short CREE if it slips below 33.75. Our initial target is 32. Risk
0.75-1.00.

Limited Brands (LTD): The issue is forming a narrow trading range just
above its rising 10-day MA. Long LTD when it takes out 25. Risk 50 cents. Our
initial target is 26.  

Good night.

T.Kamada

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