Tuesday’s Top Stocks From TradersWire
Let me show you one
actual example why many traders refuse to carry overnight positions.
Biogen Idec (BIIB) announced its decision to pull Tysabri from the market
over safety concerns. The stock gapped down and opened nearly 43% below Friday’s
close. It was a nightmare for swing traders. Of course, this kind of disaster
does not hit traders everyday. Remember, placing protective stops are not
sometimes good enough to save you from accidents.
The Dow Jones Industrial Average could not
record the fourth consecutive winning session. It failed to take out its
resistance level and formed a bearish bar. Volume was slightly higher than its
daily average. The Nasdaq Composite Index lost 0.66% of its value and
finished just below the 50% retracement level.
Now, three stocks for Tuesday:
Nextel Communications (NXTL): The issue failed to break above the
February 4 high and closed poorly. Short NXTL if it slips below 29.40. We are
looking for the February 23 low (28.36). Risk 35 cents.
Novellus Systems (NVLS): The stock reversed to the downside and closed
below the February 15 high. Notice the MACD histogram is showing a negative
divergence. Short NVLS if it trades below 29.27. Target is near 28. Risk
0.35-0.5.
AstraZeneca
(AZN): The issue shaped a bullish tail
at a support level. Long AZN if it trades above 39.80. Target is the February 22
high (41.75). Risk 0.5-0.75.
T.Kamada
Feel free to mail me your
questions.