Six Stocks You Need To Know For Monday
Stocks were lower Friday after traders were disappointed with Q2 growth.
Stem cell stocks got a lift from Washington. Stem cell stocks
rallied after Senator Bill Frist called for more federal funding for
embryonic stem cell research. Gainers include: Aastrom Bioscience (ASTM),
Geron (GERN),
ViaCell (VIAC)
and StemCells (STEM).
Frist’s comments put him at odds with President Bush, who opposes stem cell
research and will likely veto the bill.
Let’s take a look at two stem cell stocks, as
well as a few others:
This is a monthly chart of Stem Cells. As you can see, it
has some resistance coming up soon, but is still well off its highs. Keep in
mind that there is by no means any guarantee embryonic stem cell research
will get any additional funding.
ViaCell rallied some from a pullback, but did not close
well. This stock, too, is well off its highs.
The S&P 500 made a fairly wide range down day, which could
be a warning for next week. Remember, most of the big earnings reports have
been released already so the market will be looking elsewhere for guidance.
Time Warner made what candlestick folks would call a
‘bearish engulfing’ bar. This stock could pull back.
Commscope had an ugly looking bar. Potential support is
nearby, however. This stock is probably headed lower, but a short-term
reaction higher is not only possible, but likely. The optimum time to short
this stock would be a rally to approximately the 17.50 level (50% of today’s
bar).
Here’s another stock that made a sick-looking daily bar.
Again, probably headed lower. If you own it, sell it on rallies. If you want
to short it, wait for a rally. If you are a risk-taker, play any near-term
rally.
Brice Wightman