Friday’s Top Stocks From TradersWire

  • March 31, 2005
  • Tsutae Kamada

If you sold Biogen Idec
(BIIB) short at yesterday’s close and bought it back at today’s
close, you made a nice 10% gain. But, the put options buyers are probably
celebrating at this moment. If you bought Biogen Idec April 35 put yesterday,
you could have sold it with a gigantic 700% profit! No wonder options are so
addictive.

Both the Dow and Nasdaq were directionless. Each index formed a narrow range bar
above the 200-day SMA (simple moving average). 

Probably you could not buy Morgan Stanley (MWD) this morning. It gapped
up well above our entry point and reached as high as 57.60, only 40 cents away
from our target.  

Now, three stocks for Friday:

AtheroGenics (AGIX): The issue may be forming a bottom. Notice the
14-period RSI is improving drastically. Long AGIX if it trades above 13.10. We
are looking for near 14. Risk 25-35 cents.

Countrywide Financial (CFC): The stock failed to take out the 38.2%
retracement level and closed poorly. Short CFC if it slips below 32.33. Target
is the March 23 low (31.13). Risk 0.35.

eBay (EBAY): The issue briefly traded above the 20-day EMA, but the 38.2%
retracement level was too tough to overcome. Short EBAY if it moves below 37.09.
Target is 35. Risk 50-75 cents.

T.Kamada

Feel free to mail me your
questions.