Tuesday’s Top Stocks From TradersWire

  • March 28, 2005
  • Tsutae Kamada

Blockbuster (BBI)
announced its decision to abandon a takeover bid
for Hollywood Entertainment (HLYW). The
disappointed speculators dumped  HLYW immediately after the opening bell.
The stock lost nearly 7% of its value for the day on extremely heavy volume.

The Dow Jones Industrial Average failed to move above its declining trendline.
Notice the index formed a bearish tail. It was another frustrating day for the
Nasdaq. The Composite Index bounced off a descending trendline and finished
below the 200-day SMA (simple moving average).

From Thursday’s report, Zimmer Holdings (ZMH) hit our target price
shortly before 3:00 PM. If you are still holding it, make sure to adjust your
stop price higher. In general, sell half if the stock reaches your target price
and move your stop to at least breakeven. 

Now, three stocks for Tuesday:

Tech Data (TECD): This is a potential double bottom situation. Long TECD
if it trades above 37.55. The initial target is 38.39 (3/22/05 high). Risk 35
cents.

BB&T Corp (BBT): The stock failed to take out the 50% retracement level
and closed poorly. Short BBT if it slips below 38.70. We are looking for the
March 23 low (37.68). Risk 0.35.

Research in Motion (RIMM): The issue tested the 50-day EMA and closed
above the 38.2% retracement level. Long RIMM if it takes out 75.50. The initial
target is 78. Risk 0.5-0.75.

T.Kamada

If you have questions, feel free to
mail them to me.