Wednesday’s Top Stocks
It looks like a resumption of the
downtrend has begun. Both Diamonds Trust (DIA) and
Nasdaq-100 Index Tracking Stock (QQQ) closed near the day’s low. Notice, QQQ
fell out of a bear flag.
Now, let’s look at Semiconductor HOLDRs (SMH). After failing to take out
the descending 20-day EMA, the stock sold off and closed poorly. Although it
looks bearish, SMH finished right at the upper boundary of a gap zone.
Let’s see three stocks for tomorrow:
Starbucs (SBUX): As Chris Tyler mentioned in our chatroom today, SBUX is
deteriorating rapidly. The issue violated the rising trendline and closed below
the 20-day EMA for the first time since May. Notice, the RSI indicator is
showing a negative divergence.
Allergan Inc (AGN): The stock broke down below a bear flag. Look for a
continuation of the downward move.
Electronic Arts: (ERTS): The issue formed a doji bar just above the
200-day EMA, and it may be forming a double bottom. Wait till today’s high is
taken out.
Good night and see you tomorrow.