Thursday’s Top Stocks From TradingMarkets
Research in Motion (RIMM)
lost nearly 10 percent of its value, downgraded by UBS, and closed at
its 20-day moving average. Look at extremely heavy volume! Every time when I see
a chart like this, it reminds me the importance of placing proper stops on all
of my opening positions.
Diamonds Trust (DIA) finally took out its 50-day MA decisively. Needless
to say, it still has the 200-day MA to overcome. Nasdaq-100 Index Tracking
Stock (QQQ) gained 0.67 percent, but it failed to move above the June 30
high.
Let’s see three stocks for Thursday:
General Motors (GM): The issue succumbed to a gap zone and closed poorly.
Short GM if it trades below 38.63. Target is near 37. Place a stop just above
the 20-day MA (39.17), or risk one point.
Cree Inc (CREE): The stock formed a bearish engulfing bar on heavy
volume. Short CREE if it slips below 33.75. Our initial target is 32. Risk
0.75-1.00.
Limited Brands (LTD): The issue is forming a narrow trading range just
above its rising 10-day MA. Long LTD when it takes out 25. Risk 50 cents. Our
initial target is 26. Â
Good night.
If you have questions, feel free to mail them to me.