Friday’s Top Stocks From TradersWire
The market sold off
hard. It could not follow through on yesterday’s rally. It was a
disappointing session. I really don’t know the exact reason of this sell-off,
but some traders suspect GM’s (General Motors) guidance may caused this
sudden decline. Look at the daily chart of GM. It decisively broke down
below 38, and the October 25 low is only inches away.
I thought Diamonds Trust (DIA) would
rally. It formed a bullish hammer yesterday, but it could not show any strength
at all today. It was an ugly day. I guess many traders are expecting a test of
the 38.2% retracement level. The Nasdaq-100 Index closed poorly, but it
managed to hold above Wednesday’s low. Needless to say, it was also a pathetic
ending.
Now, three stocks for Friday:
Amazon.com (AMZN): The issue reversed to the downside, and it formed a
long upper tail just above the 200-day MA. Short AMZN if it slips below 42.30.
Target is near 41. Place a protective stop just above the 200-day MA (42.45), or
risk 0.5-0.75.
Network Appliance (NTAP): The stock is showing relative strength. Long
NTAP if it takes out a short-term trendline (32.42). The initial target is near
33.60. Risk 0.5.
American Eagle Outfitters (AEOS): The issue tested a rising trendline
successfully and finished near the day’s high. Long AEOS if it trades above 49.
The initial target is 50. Risk 0.5.     Â
Feel free to mail me your questions.