Monday’s Top Stocks From TradersWire

No more sell off for
General Motors (GM)
. Although the stock lost another 10 cents, it
managed to hold above the 50-day EMA and formed a narrow range bar. Definitely,
Thursday’s bad news is wearing off.

(Charts courtesy of QCharts)

It’s Friday. Let’s look at the weekly charts. The Dow Jones Industrial Average
recorded three consecutive winning weeks. The index finished near the week’s
high, but it could not take out the 38.2% retracement level.

The Nasdaq Composite Index closed strongly just below the upper boundary of a
declining channel. The 38.2% retracement level is slightly above 2000.

Now three stocks for Monday:

As I have pointed out above, markets are facing resistance levels to overcome.
Don’t be too aggressive with long positions.

Retail Holdrs (RTH): The stock is struggling to move above a resistance
level and looks ready to resume its downtrend. Short RTH if it slips below 90.
The initial target is 88. Risk 75 cents.

iShares Russell 2000 (IWO): The issue failed to take out a horizontal
resistance line and formed a mildly bearish bar. Short IWO if it trades below
60.30. The initial target is 59. Risk 50-75 cents.     

Community Health (CYH): The stock is forming a flag, and we are looking
for a breakout. Long CYH if it moves above 36.45. Target is near 38. Risk
0.5-0.75.

If you have questions, feel free to
mail
them to me.