Wednesday’s Top Stocks From TradersWire
Limited Brands (LTD) was
downgraded to underweight from neutral by Prudential Equity Group.
Obviously, some investors did not like the news and dumped their shares at the
open. But as you can see below on the 10-minute chart, selling at the open was
not a wise choice. In fact, the opening price was the worst level of the day.
Don’t panic!
The Dow Jones Industrial Average lost nearly 80 points on increased volume and
finished near the day’s low. Notice the 200-day SMA (simple moving average) is
just inches away. It was another dismal day for the Nasdaq. The Composite Index
decisively closed below the 200-day SMA. Volume was about its daily average, but
exceeded Monday’s level.
I thought Research in Motion (RIMM) was ready for a recovery rally. The
stock could not touch our entry point, and it closed slightly above the 50-day
SMA. RIMM can be still bought if it takes out 75.30.
Now, three stocks for Wednesday:
Cytyc Corp (CYTC): The stock is struggling to break above the 50%
retracement level. Short CYTC if it slips below 22.95. Target is the March 18
low (21.02). Risk 0.35-0.5.
Nextel Communications (NXTL): The issue tested the January 28 low and
formed a mildly bullish bar. Not so drastic, but the MACD histogram is showing a
positive divergence. Long NXTL if it moves above 28.03. The initial target is
28.80. Risk 0.25-0.35.
Paychex Inc (PAYX): The issue is pulling back from the recent high and is
testing the 61.8% retracement level. Long PAYX if it trades above 33.07. We are
looking for 34. Risk 0.35.
T.Kamada
Feel free to mail me your
questions.