Thursday’s Top Stocks From TradersWire

  • May 4, 2005
  • Tsutae Kamada

Mr. Kirk Kerkorian
ignited the market. He made a tender offer for up to 28 million
shares of General Motors (GM) common stock at $31 a share. GM gained more
than 18% on extremely heavy volume and closed just below the upper boundary of a
gap zone.

The Dow Jones Industrial Average decisively broke above its resistance line and
closed near the day’s high. The index is now challenging the 200-day EMA and the
38.2% retracement level.

The Nasdaq Composite Index recorded four straight winning sessions and ended the
day just below a resistance line. 

Now, three stocks for Thursday:

ImClone Systems (IMCL): The issue appears to be forming a double bottom.
Notice the 14-period RSI is showing a strong positive divergence. Long IMCL if
it takes out 31.30. The initial target is the 20-day EMA (32.68). Risk 50 cents.

SigmaTel (SGTL): The stock is pulling back to a declining trendline from
the April 27 low. Short SGTL if it trades below 26.73. The initial target is
25.50. Risk 0.5.

Marriott (MAR): The issue tested the January 12 low successfully and
closed at the day’s best level. We are looking for the continuation of this
upward move. Long MAR if it takes out 62.20. The initial target is 63.50. Risk
50 cents.

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

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