Monday’s Top Stocks From TradersWire
Martha Stewart finished
her five-month sentence, and the stock (Martha Stewart Living
Omnimedia) gapped up at the open. Look at the 5-minute chart below. The issue
immediately formed a bearish tail above the upper Bollinger band. Simply, this
kind of momentum was not sustainable. At 10:00 AM, the stock was touching its
20-period SMA (simple moving average).
Dow Jones Industrial Average finally took out a resistance line and closed at a
3-year high. Volume was slightly higher than Thursday’s level. Also notice the
RSI is indicating a negative divergence. Although the Nasdaq Composite Index has
gained 12 points, it is still struggling to break above the 50-day SMA. Clearly
investors are avoiding high-tech stocks.
Now three stocks for Monday:
First Data (FDC): The issue failed to take out the 50-day SMA and shaped a
bearish tail. Short FDC if it trades below 40.94. Target is the February 22 low
(39.75). Risk 35 cents.
TJX Cos (TJX): The stock could not break above the 50% retracement level and
closed poorly. Short TJX if it slips below 24.60. Target is the 200-day SMA
(23.76). Risk 35 cents.
Omnicom Gp (OMC): The issue may be ready to rally out of a pullback. Long OMC if
it moves above 90. Target is near 91.50. Risk 50 cents.
T.Kamada
Feel free to mail me your
questions.