Wednesday’s Top Stocks From TradersWire
The market sold off on
rumors that big hedge funds were in trouble as result of their
exposure to downgraded General Motors bonds. Look at the 15-minute chart
of the S&P 500 Index below. It attempted to regain some of the losses in the
mid-afternoon, but the 50% retracement level was too tough to overcome.Â
Washington Mutual (WM) lost 40 cents for the day, but the flag is still
intact. We are looking to buy the stock if it takes out 42.35. Our new initial
target is 43. Risk 30 cents.
The Nasdaq Composite Index gapped down at the open, but it managed to close
above Monday’s low.
Again, the Dow Jones Industrial Average failed to take out the 200-day EMA and
closed poorly.
Now, three stocks for Wednesday:
Northern Trust (NTRS): The issue tested the 61.8% retracement level and
shaped a mildly bullish bar. Long NTRS if it trades above 45.80. The initial
target is near 47. Risk 50 cents.
Maxim Integrated Products (MXIM): The stock broke down below a bear flag.
Short MXIM if it slips below 37.60. We are looking for near 36.30. Risk 0.5.
QLT Inc (QLTI): The issue is struggling to take out the April 28 high.
Short QLTI if it moves below 11.42. Target is 10.60. Place a stop just above
today’s high (11.52), or risk 35 cents.
Feel free to mail me your
questions.