Wednesday’s Top Stocks From TradersWire
The Fed raised the fed
funds rate by 25 basis points to 2.75% as expected. But, the Fed also
said, “Pressures on inflation have picked up in recent months and pricing
power is more evident.” Buyers disappeared from the market. As you can see
below, both the Dow Jones Industrial Average and Nasdaq Composite Index closed
at the worst level of the day. Notice the Nasdaq is now below its 200-day SMA
(simple moving average).
Now four stocks for Wednesday:
Tech Data Corp (TECD): The stock is forming a bear flag just below the
10-day SMA. Short TECD if it slips below 37.90. Target is the March 11 low
(36.68). Risk 35-50 cents.
Telik Inc (TELK): The issue looks ready to resume its downtrend. Short
TELK if it trades below 15.95. We are looking for 14.50. Risk 0.35-0.5.
American Eagle Outfitters (AEOS): The stock is testing the lower boundary
of a gap and a rising trendline. Long AEOS if it takes out 28.43. Target is near
29.70. Risk 0.35-0.5.
Darden Restaurants (DRI): The issue failed to take out the 20-day SMA and
formed a bearish tail. Short DRI if it moves below 27.44. Target is 26. Risk
0.35-0.5. (DRI reports its earnings after the close.)
T.Kamada
Feel free to mail me your
questions.
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