Wednesday’s Top Stocks

  • August 17, 2004
  • Tsutae Kamada

Both Diamonds Trust (DIA)
and Nasdaq-100 Index Tracking Stock (QQQ) closed just below the declining
trendline. I don’t know how much more they can advance, but look at
the positively diverging RSI.

One of the notable sectors today was oil. As you can see below, Oil Service
HOLDRs (OIH), accompanied by extremely heavy volume, broke down below its
gap zone. Are there anxious buyers at the 200-day EMA?

Now, let’s look at three stocks for tomorrow:

Caterpillar (CAT): As expected, the gap and the 50% Fib level stopped
this issue’s upward move. Look for a resumption of the downtrend.

Pulte Homes (PHM): After hitting a new high, the stock reversed and
formed a bearish shooting star. Look to sell below yesterday’s (16th) close.

Amerada Hess (AHC): The issue formed a bearish wide range bar on almost
40% heavier than its normal volume. Look for a test of the support level.

Good night and see you tomorrow.

T.Kamada