Friday’s Top Stocks
Many market participants
pay attention to the 200-day SMA (simple moving average), but I wonder how many
investors watch the 200-week SMA. Look at the chart below. It is a
weekly chart of Career Education Corp (CECO). This is not the first time,
but the 200-week SMA has successfully stopped a further decline of the stock. Is
it just a coincidence?
Both Nasdaq-100 Index Tracking Stock (QQQ) and Diamonds Trust (DIA)
formed an inside bar. It may be signaling a potential reversal to the downside.
Let’s look at three stocks for Friday:
3M Company (MMM): Although the stock took out the declining 20-day SMA, a
gap zone and the 200-day SMA were too tough to overcome. Look for a resumption
of the downtrend.
Apple Computer (AAPL): The issue broke out to a new 52-week high and
closed strongly near the day’s high. Volume was heavy. Look for a continuation
of the upward move. Of course, you can wait for a pullback to catch a better
entry point.
Nextel Communications (NXTL): The stock shaped an inside bar and closed
just below the 38.2% Fibonacci retracement level. Look for a resumption of the
downtrend.
Good night and see you tomorrow.