Tuesday’s Top Stocks From TradingMarkets
Semiconductor HOLDRs (SMH)
formed a doji bar just below the declining 50-day MA after failing to move above
a gap zone. It appears SMH is losing its upward momentum, and we may
see a resumption of the downtrend.
Nasdaq-100 Index Tracking Stock (QQQ) extended its gains and closed just
below the 200-day MA. Notice, the stock has risen three consecutive days. Does
it mean anything? It looks so bullish, but should you chase the issue? If you
are interested in the answer, I strongly recommend you to read “How
Markets Really Work” by Larry Connors.
Diamonds Trust (DIA) also shaped a doji bar slightly below the September
7 high.
Now, let’s look at three stocks for Tuesday:
Countrywide Financial (CFC): The stock is attempting to rally out of a
pullback from the September 8 high. Look for a resumption of the uptrend.
JetBlue Airways (JBLU): The issue has failed to take out the declining
50-day MA. Look for a test of the September 8 low.
ATI Technologies (ATYT): Like JetBlue Airways, the stock formed a bearish
tail right at the 50-day MA. Look for a resumption of the downtrend.
Good night and see you tomorrow.
If you have questions, feel free to mail them to me.
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