Wednesday’s Top Stocks From TradingMarkets
Shortly before the
opening bell, Reuters reported a possible case of mad cow disease in Japan.
I wondered if this news would affect McDonald’s (MCD) again. As you can
see below, MCD gapped down, but the stock did not sell off sharply at all. In
fact, the gap was filled completely in the afternoon.
Diamonds Trust (DIA) is still holding above a support line, but it is
starting to form a declining channel ( a bull flag?). Nasdaq-100 Index
Tracking Stock (QQQ) closed just above the 8-day EMA on slightly less than
its 65-day average volume. Notice, the MACD is starting to turn down.
Let’s look at three stocks for Wednesday:
Goldman Sachs (GS): The stock appears to be forming a Haggerty’s 1-2-3
top. Short GS if it slips below 104.50. The initial target is the November 19
low (101.91). Place a stop just above yesterday’s high (105.59), or risk one
point.
Merrill Lynch (MER): The issue broke down below a neckline. Short MER if
it trades below 55.61. The initial target is near 53.50. Place a stop slightly
above 56.
Marvell Technology (MRVL): The stock closed right at the top of a range.
Long MRVL if it takes out today’s high (32.38). The initial target is 34.50.
Place a stop just below the top of the range, or risk one point.
Good night!
If you have questions, feel free to mail them to me.
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