Wednesday’s Top Stocks From TradersWire
If he is buying it, I
can buy it, too. Bloomberg.com reported this morning that
Warren Buffett doubled his stake in Comcast Corp (CMCSK) to 10
million shares. Needless to say, the stock gapped up at the open and closed just
below the 50% retracement level. Volume was more than twice its daily average.
As Brice, Editor-in-Chief, pointed out in TradersWire, the S&P E-Mini
(ESH5) finished at very interesting level. It appears the old trendline has
become a resistance.
Diamonds Trust (DIA) gained 0.45% and closed just below a horizontal
resistance line. Although the Nasdaq-100 Index took out the upper
boundary of a gap zone, it formed a somewhat bearish tail.
Now, three stocks for Wednesday:
Radio Shack (RSH): The issue failed to break above a resistance line and
finished poorly. Short RSH if it slips below 33.75. The initial target is the
20-day EMA (33). Risk 0.30-0.35.
Valero Energy (VLO): The stock may be shaping a top. Notice the MACD
histogram is showing a negative divergence. Short VLO if it trades below 61.55.
The initial target is 57.65. Risk 0.75.
MBNA Corp (KRB): The issue tested its 200-day MA successfully and formed
a bullish tail. Long KRB if it breaks above a declining trendline (26.23). We
are looking for near 27. Risk 0.3.
T.Kamada
If you have questions, feel free to
mail them to me.