Monday’s Top Stocks From TradingMarkets
Let’s look at the weekly
Charts for a
change. Diamonds Trust (DIA) continues to perform well while
some market participants wait for a pullback. As you can see, DIA broke out of a
declining channel decisively last week. Needless to say, many eyes are now
focused on the February high. Nasdaq-100 Index Tracking Stock (QQQ)
finished at only inches away from the January high. I wonder how much longer
this v-shaped rally can be sustained.
Now, three stocks for Monday:
The market is overbought. If you have been waiting for a pause or a pullback,
you may see it soon. Just be patient!
Merrill Lynch (MER): The stock moved out of a trading range on heavy
volume. We are looking for a continuation of this upward move. Long MER if it
takes out today’s high (57.09). Our initial target is the June 7 high (58.18).
If that is taken out, the next goal is 60. Place a stop just below the top of
the range (56.50).
Avery Dennison (AVY): The issue looks ready to resume its downtrend.
Short AVY if it slips below 56.38. Our target is the November 8 low (53.50).
Place a stop just above yesterday’s high (57.34).
Northwest Airlines (NWAC): The stock is forming a trading range just
above the 200-day MA. Long NWAC if it trades above 10.30. Our initial target is
11. Risk 0.25-0.35.
Have a nice weekend!
If you have questions, feel free to mail them to me.
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