Tuesday’s Top Stocks

July 26, 2004
Tsutae Kamada

Let me force myself to
look for a bright spot in this market. Yes, I know we are in a bear
market, but the NASDAQ 100 Index Tracking Stock (QQQ) could be setting up
for a minor recovery rally. Let’s look at the daily chart.

As you can see clearly, the stock held at the support level. Although it is
still declining, the RSI index is showing a positive divergence. I am not
suggesting to buy aggressively here. I am simply pointing out that a minor rally
will provide us better selling opportunities later.

If the markets show some strength tomorrow, focus on the stocks below. Each
issue is forming a bull flag on its 60-minute chart.