WM - Washington Mutual $37.08 (+1.18)

Sunday's Comment:

Washington Mutual, more affectionately known as "WAMU", has its hands in many aspects of the mortgage and banking businesses. For this reason, it is more able to take advantage of a lower interest rate environment. In addition, its corporate clients are generally small to medium sized companies who are the first to step up their lending habits when interest rates drop. WM has also been able to cash in on the refinancing boom since it originates, sells and services mortgage loans. Turning to the chart, WM has just broken out of an inverse head and shoulders continuation pattern. Not only did it break up through its neckline at $37 on Friday, but it did so on good volume of 5.5 million shares. WM typically trades 3.7 million shares. Going forward, traders interested in initiating a position in WM could look to do so on a break above Friday's high of $37.34 on volume that puts the stock on track to do 4 million for the day. We are placing our original stop at $35.00 to limit our downside risk.

Picked On June 17th @ $37.08 Change Since Picked 0.00 Stop Loss @ $35.00

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