Wednesday’s Top Stocks From TradersWire
Some of you got what you
were waiting for. Is it a normal pullback, or is it the beginning of
a downtrend? Diamonds Trust (DIA) broke down below its 20-day EMA on
heavy volume. Although it closed near the day’s worst level, it managed to hold
above 104. It appears DIA is shaping a double top. Nasdaq-100 Index also
finished at the day’s low. Notice, it is now below a rising channel.
After the close, Brice, Editor-in-Chief, showed me the 240-minute chart of
E-Mini SP 500 (ESZ4). What do you think? It closed right at the line. If the
market gaps down tomorrow morning, we might have an opening reversal play.Â
Now four stocks for Wednesday:
InfoSpace (INSP): The issue failed to take out a gap zone and formed a
bearish bar. Short INSP if it trades below 46.29. The initial target is 44. Risk
0.75-1.00.
Gilead Sciences (GILD): The stock reversed to the downside and finished
below the 50-day MA on increased volume. Short GILD if it moves below 35.48. The
initial target is 33.75-34.00. Risk 0.75.
VeriSign (VRSN): The issue broke down below a rising trendline after
failing to take out 35. Short VRSN if it trades below 32.77. We are looking for
near 30.50. Risk 0.75.
RadioShack (RSH): If the market reverses to the upside tomorrow, long RSH.
The stock is in a pullback from the November 29 high, and it is testing the
50-day MA. Buy it above 31.20, and the initial target is 32.30. Place a stop
just below today’s low (30.83).
Good night!
If you have questions, feel free to mail them to me.