Thursday’s Top Stocks From TradersWire
Carly Fiorina’s
resignation announcement ignited Hewlett Packard (HPQ). It gained
6.9% for the day on extremely heavy volume. But, if you sold the stock short at
the open and cover the position at the close, you could have gained nearly 3.3%,
too. How could we short the issue at the open? Was it logical? I am only
speculating now, but I think the 127.2% Fibonacci level could have used to open
short positions.
Diamonds Trust (DIA) formed an outside bar on increased volume and closed
near the day’s low. It appears the issue needs to test the 50-day MA. The
Nasdaq-100 Index broke down below a flag, and it shaped a wide range bar.
Volume was slightly above its daily average.Â
Now, four stocks for Thursday:
iShares Russell 2000 (IWM): The issue re-crossed below the 50-day MA on
nearly twice its daily average volume. Short IWM if it slips below 124.30.
Target is near 120. Risk 0.75.
Placer Dome (PDG): The stock may be forming a bottom. Notice the
stochastic is showing a positive divergence. Long PDG if it takes out 16.77.
Target is near 18. Risk 0.35-0.5.
Diamonds Trust (DIA): As I mentioned above, the issue formed a bearish
outside bar. Short DIA if it trades below 106.62. The initial target is the
50-day MA (106), and the next target is 105.50. Risk 0.3.
Nasdaq-100 Trust (QQQQ): The stock broke down below a flag on increased
volume. Short QQQQ if it moves below 37.05. The initial target is the January 24
low (36.46). Risk 0.25.
T.Kamada
Feel free to mail me your
questions.
Â