Monday’s Top Stocks
It was a discouraging day.
Almost every chart I looked at was telling me to short. I just don’t know how to
motivate any buyers to come back to the market, but let’s look at the daily
chart of Diamonds Trust (DIA).
The stock formed a doji bar at the support level. Notice, RSI is also improving,
and we may see a re-test of the gap zone.
Not so much can be said about Nasdaq-100 Index Tracking Stock (QQQ). It
is still vulnerable to the downside until the gap zone is taken out.
Let’s look at three stocks for Monday:
Phelps Dodge (PD): The stock is nearing the top of a triangle. Look for a
breakout. (I got this idea from Gary Kaltbaum. He was in the office this
morning.)
Biomet Inc (BMET): The issue broke down below a bear flag. Look for a
test of the August 6 low.
Forest Labs (FRX): The stock is struggling to move above the declining
8-day EMA. Look for a resumption of a downtrend.
Good night and see you Monday.