Wednesday’s Top Stocks From TradersWire

Monday’s late afternoon
news was still good enough
to push Genentech Inc (DNA) higher at the
open. Investors love to hear a good cancer drug story. As you can see on the
15-minute chart below, the good news has caused the stock to break above the
upper Bollinger Band. It is just impossible to keep up this kind of strong
momentum. Sooner or later, the stock has to move back to its normal value.

The Dow Jones Industrial Average broke below a rising trendline and closed right
at the 38.2% retracement level. Volume was less than its daily average. The
Nasdaq Composite Index gapped up at the open, but it immediately reversed to the
downside and finished poorly.

Now three stocks for Wednesday:

Boston Scientific (BSX): The stock is forming a bear flag just below the 38.2%
retracement level. Short BSX if it trades below 30.09. Target is the March 9 low
(28.79). Place a protective stop just above 30.65.

Computer Sciences (CSC): The issue looks ready to resume its downtrend. It
failed to take out the 20-day MA and closed at the day’s worst level. Short CSC
if it slips below 45.50. Target is near 44.25. Risk 0.35-0.5.

Fidelity National Financial (FNF): The stock hit
the upper boundary of a range and reversed to the downside. Short FNF if it
moves below 44.56. Target is 43.50. Risk 0.35-0.5.

T.Kamada

If you have questions, feel free to
mail
them to me.