Wednesday’s Top Stocks From TradersWire
Alliance Data Systems
(ADS) traded as low as 36.01, and it gave us an opportunity to to
take a partial profit. Remember to reduce your position when a stock covers your
initial risk.
It failed again. The Dow Jones Industrial Average could not move out of a range,
and it formed a bearish tail. Volume was light.
The Nasdaq Composite index is shaping a flag just above its 20-day SMA (simple
moving average). As you can see below, today’s inside bar may be signaling a
potential directional change.
Now three stocks for Wednesday:
McAfee Inc (MFE): The issue is pulling back to a support level from the
May 31 high. Long MFE if it takes out 26.75. The initial target is 28. Risk 50
cents.
Travelzoo (TZOO): The stock broke above a resistance line and formed a
bullish wide range bar on strong volume. We are looking for the continuation of
this upward move. Long TZOO if it trades above 36.37. Target is near 38.50. Risk
one point. Some of you may say one point is too wide. Remember this report is
just a guideline. Place stops where you are comfortable with.
Affymetrix (AFFX): The issue broke out of a flag on increased volume.
Long AFFX if it moves above 52.81. Target is 54. Risk 60 cents.
If you have questions, feel free to
mail them to me.