Monday’s Top Stocks From TradingMarkets

November 5, 2004
Tsutae Kamada

Both Diamonds Trust (DIA)
and Nasdaq-100 Index Tracking Stock (QQQ) gapped up at the open. DIA
succeeded to take out the September 7 high, and QQQ managed to close above the
June 30 high. Is everything clear for buyers? Can we forget about short selling?

As we have pointed out in TradersWire, it may be wise to close out your
opening long positions. Look at the chart below. It is not extreme, but S&P
500 Index ($SPX.X) has formed a mildly bearish tail on its daily chart. The
market may be forming a short-term top. I am not suggesting to short the market
aggressively. Just be extra careful if you are thinking to open a new long
position.

Let’s see three stocks for Monday:

Wal-Mart Stores (WMT): The issue formed a bearish tail and closed near
the day’s low. Short WMT if it trades below 56.25. Our initial target is
55.00-55.28. Place a stop just above today’s high (56.95).

Coach Inc (COH): Although the stock closed at a new high, it shaped a
worrisome tail. Short COH if it slips below Thursday’s close (47.39). We are
looking for near 46. Risk 0.5-1.0.

AtheroGenics (AGIX): Not by much, but the issue managed to close above
the November 3 high. Long AGIX if it takes out today’s high (32.77). Target is
near 35. Risk one point, or place a stop just below today’s low (30.95).