Wednesday’s Top Stocks From TradersWire
Lowe’s (LOW) strongly
broke out of a range on heavy volume. We took a partial profit and
raised our stop higher.
It was a disappointing day for bulls. Both the Dow Jones Industrial Average and
Nasdaq Composite index failed to move above the resistance levels and closed
near the day’s low. Volume exceeded yesterday’s level.
Look at the 10-minute chart of S&P 500 Index below. It formed a triple top and
broke down shortly after 1:30.
Now three stocks for Wednesday:
The market has made a bearish reversal. I am looking for short selling
opportunities.
Carmax Inc (KMX): The issue finished poorly just below the gap zone. We
are expecting a resumption of the downtrend. Short KMX if it slips below 26.20.
Target is near 25. Risk 50 cents.
Paychex Inc (PAYX): The stock is pulling back to the 38.2% retracement
level from the June 1 low. Short PAYX if it trades below 30. We are looking for
28.60. Risk 45 cents.
First Marblehead (FMD): The 38.2% retracement level was too tough to
overcome. The issue shaped a bearish tail and closed near the day’s low. Short
FMD if it moves below 35. Target is near 32.50. Risk 50 cents.
If you have questions, feel free to
mail them to me.