Tuesday’s Top Stocks From TradersWire

The market attempted a recovery rally
on light volume.
This is not really a bullish sign. Look at the daily
chart of Diamonds Trust (DIA). It broke out of a declining channel, but
volume was less than 80% of its daily average. Watch out for last Wednesday’s
high. It might become a resistance level. On the other hand, the Nasdaq-100
Index
closed just below a descending trendline. As with DIA, volume
was weak.

Now, four stocks for Tuesday:

DR Horton (DHI): The issue tested its 50-day EMA successfully and closed
at the day’s high. Long DHI if it takes out a resistance level (39.90). Target
is near 42. Risk 0.75.

Semiconductor HOLDRs (SMH): The issue is struggling to move above the
confluence of two retracement levels. Short SMH if it slips below 31.14. The
initial target is 30.23. Risk 0.35.  

Health Management Associates (HMA): The stock tested the January 11 low
and formed a mildly bullish bar. Long HMA if it trades above 22.50. target is
24. Risk 0.5.

QLogic Corp (QLGC): As I mentioned last Friday, the issue may be forming
a top. Notice the 14-period RSI is showing a negative divergence. Short QLGC if
it moves below 37.98. We are looking for 36.45. Risk 0.5-0.75.

T.Kamada

Feel free to mail me your questions.

Â