Tuesday’s Top Stocks From TradingMarkets

November 29, 2004
Tsutae Kamada

Wal-Mart Stores (WMT)
dragged down the retail sector after the company reduced its November
sales forecast over the weekend. WMT gapped down at the open and closed near the
day’s low on extremely heavy volume. As you can see below, it is going to be
very difficult to fill such a huge gap. Also look at the daily chart of
Retail HOLDRs (RTH). If you are still holding retail stocks, it is time to
get out.

I thought the market was in trouble, but Diamonds Trust (DIA) managed to
close above a support line, and Nasdaq-100 Index Tracking Stock (QQQ)
tested its 8-day EMA successfully. I bet some short sellers are getting really
sick of this market.

Now, three stocks for Tuesday:

CV Therapeutics (CVTX): The issue looks ready to resume its uptrend. Long
CVTX if it takes out 20.75. Our target is the November 17 high (22.81). Place a
stop just below today’s low (20.15).

Cabot Microelectronics (CCMP): The stock bounced off the 50% Fibonacci
level and re-crossed above the 8-day EMA. Long CCMP if it moves above 38.25. The
initial target is 40. Place a stop just below the 8-day EMA (37.53).