Friday’s Top Stocks From TradersWire
If you are smiling, you
must be a short seller. Look at the daily chart of the Dow Jones
Industrial Average. It formed a bearish wide range bar and finished at the day’s
low. Yes, it is still holding at the 200-day EMA, but I don’t think anybody
cares. Volume was heavy.
Some of you may agree that the ugliest chart of the day is the Semiconductor
Sector Index. Look at the long tail. This is an excellent example of a breakout
failure.
Now four stocks for Friday:
Google (GOOG): The stock looks like forming a double top. GOOG gained 41
cents for the day, but it shaped a bearish bar. Short GOOG if it slips below
286.50. Target is the 20-day EMA (277). Risk two points.
Texas Instruments (TXN): The issue reversed to the downside and closed
near the day’s worst level. Notice the RSI is showing a negative divergence.
Short TXN if it trades below 28.19. Target is 27. Risk 50 cents.
CDW Corp (CDWC): The stock broke down below a channel on heavy volume.
Short CDWC if it moves below 55.90. We are looking for 54. Risk one point.
KB Home (KBH): The issue closed just above the upper boundary of a gap
zone after pulling back from the June 17 high. Long KBH if it takes out 75. The
initial target is 77. Risk one point.
Feel free to mail me your
questions.