Tuesday’s Top Stocks
The market staged a
rally on weak volume. This upward move may last for a couple of days
to provide us new short selling opportunities. Nasdaq-100 Index Tracking
Stock (QQQ) struggled to take out the descending 8-day EMA, and it formed a
mildly bearish tail. Diamonds Trust (DIA) performed much better than QQQ,
but as I mentioned, volume was less than normal average.
One of the outstanding sectors today was retail. As you can see below, Retail
HOLDRs (RTH) took out the 20-day EMA and closed just below the 38.2% Fib
level. Although volume was higher than Friday, it was still below the daily
average.
Now, let’s look at three stocks for Tuesday:
Pulte Homes (PHM): The stock formed a wide range bar and closed at a new
high on strong volume. Look for a continuation of the upward move. Of course you
can use shorter time frames to wait for a pullback before placing a buy.
Ryder Systems Inc (R): After bouncing off the 20-day EMA and the 38.2%
Fib level, the issue closed near the day’s high. Look for a breakout above its
short-term declining trendline.
KLA – Tencor (KLAC): The stock was up 42 cents for the day, but it formed
a bearish tail. Look for a resumption of the downtrend.
Good night and see you tomorrow.