Thursday’s Top Stocks From TradersWire
Research In Motion (RIMM)
and NTP Inc announced that they agreed to
resolve litigation. This news was truly a nightmare for short
sellers. RIMM gapped up more than 14 points at the open on extremely heavy
volume, and it closed above all 20-, 50-, and 200-day simple moving averages.
The Dow Jones Industrial Average lost 1.04% of its value and closed just
above the 61.8% retracement level. Volume was heavier than its daily average. It
was another disappointing day for the Nasdaq. The Composite Index closed
poorly just above the January 24 low.
Now, three stocks for Thursday:
OMI Corp (OMM): The stock failed to take out the 50% retracement level
and closed at the 50-day EMA. Short OMM if it slips below 18.50. Target is the
March 10 low (17.25). Risk 0.35-0.5.
Valero Energy (VLO): The issue looks ready to resume its uptrend. Notice
the 14-period RSI is turning up. Long VLO if it trades above 68.19. The initial
target is 70. Risk 50-75 cents.
Martha Stewart Living Omnimedia, Inc. (MSO): The stock may be ready for a
minor recovery rally. It tested its 200-day EMA and formed a mildly bullish bar.
Notice the MACD histogram is no longer declining. Long MSO if it takes out
22.88. We are looking for Tuesday’s high (24.26). Risk 50 cents.
T.Kamada
If you have questions, feel free to
mail them to me.