Tuesday’s Top Stocks From TradingMarkets
The market was trapped
in an extremely narrow range. Look at the daily chart of S&P 500
Index below. Although it failed to rake out last Friday’s high, it never
threatened Friday’s low. Is it a sign of strength? Some market participants
point out that today’s candlestick resembles a hanging man. Anyway, I believe it
is safe to say we should not be too bullish at this juncture.
Diamonds Trust (DIA) closed just below the April high, and Nasdaq-100
Index Tracking Stock (QQQ) ended slightly below January high on light
volume. Again, be extra cautious if you are considering to open a new long
position!
Now, three stocks for Tuesday:
RR Donnelly & Sons (RRD): The issue is forming a flag just above the
8-day EMA. Long RRD if it takes out 34.89. Our initial target is 36.75-37.00.
Place a stop just below the flag (34.20).
Wyeth (WYE): The stock is consolidating above the rising 20-day EMA. Long
WYE if it trades above 40.95. Our target is the November 3 high (42.54). Place a
stop just below last Friday’s low (39.67), or risk one point.
Martek Biosciences (MATK): In spite of Friday’s bullish bar, the issue
failed to stage a minor rally. Short MATK if it slips below today’s low (42.80).
Our target is Friday’s low (38.50), but 40 may become a strong support level.
Place a stop just above today’s high (44.78), or risk one point.
Good night!
If you have questions, feel free to mail them to me.