Monday’s Top Stocks From TradersWire
Apple Computer (AAPL)
broke out of a lifeless trading range and closed just below the
November 29 high. Volume was extremely heavy. I don’t remember who said this,
but there are only two cycles in the market, narrow range cycle and wide range
cycle. If your stock is stuck in a tight narrow range, watch out. It may be
ready for a wild move soon.
Although it was a losing session, Diamonds Trust (DIA) held above its
50-day EMA (exponential moving average). Nasdaq-100 Index attempted to
move out of a pullback, but it finished where it opened this morning.
Let’s look at three stocks for Monday:
Celgene Corp (CELG): The issue tested a support level successfully and
formed a bullish hammer on its weekly chart. Long CELG if it trades above 27.40.
The initial target is 28.75. Risk 0.5.
Electronic Arts (ERTS): The stock looks ready to resume its uptrend. It
tested the 50% retracement level and finished near the day’s high. Long ERTS if
it takes out 59.32. The initial target is 61. Risk 0.5-0.75.
Shanda Interactive Entertainment (SNDA): The issue is testing its rising
trendline. We are looking for a resumption of the uptrend. Long SNDA if it
trades above 40. Target is near 45. Risk one point.
Feel free to mail me your questions.