Thursday’s Top Stocks From TradingMarkets

October 20, 2004
Tsutae Kamada

The market was ready for
another down day. But, the sellers’ domination ended shortly before
11:00 AM. As is often the case, the market begins a rally when people are
extremely pessimistic. As you can see below, S&P 500 Index has formed a
bullish tail.

Diamonds Trust (DIA) also shaped a long tail. It tested its support area
successfully and looks ready to stage a minor rally. Nasdaq-100 Index
Tracking Stock (QQQ) gapped down at the open, but it recovered nicely.

Let’s look at three stocks for Thursday:

St. Jude Medical (STJ): The stock staged a strong recovery rally on
extremely heavy volume. A buy can be placed above today’s high (75.76), and the
initial price target is the October 18 high (77.21). A protective stop can be
set near the 50-day MA (74.59).

Lehman Brothers (LEH): This issue also came back strongly like St.
Jude Medical above. Although it looks bullish, we want to wait till the
issue to take out Tuesday’s close (78.64) before opening a buy position. A stop
can be placed today’s close (78.30) or near the 200-day MA (77.80). Our target
price is 80.

Jones Apparel (JNY): The stock looks ready to resume the downtrend. A
sell can be placed below today’s low (33.91), and the target price is the
October 13 low. A stop is placed just above today’s high (34.07) or the October
18 high (34.34).