|
The contents on this page are a small sample of StockTradersHQ's member resources (FREE Trial!)
1.
Our staff of professional technical traders analyze 1,000's of potential stocks every day to provide you with a list of stock picks with the greatest potential for explosive gains.
2. These stockpicks are traded with our real-time portfolio. Email alerts are sent for every entry and exit. Through the member-only website, you will have our support every step of the way.
3. Our subscription service provides all the resources, stock picks and tools an investor needs to make very profitable, consistent trades while maximizing gains and minimizing losses.
SEE OUR TOP PICKS FOR 2006...
|
|
Monday, September 13, 2004
Good evening friends,
Market Recap
A revenue warning from Broadcom and higher oil prices could not get in the way of the markets today as it was green right out of the gate and for most of the day as all three major indices finished the day in positive territory. This action was expected after the strong close near the highs of the day on Friday. However, I did not expect the markets to shrug off both the Broadcom warning and higher oil prices. Broadcom finished up over 9% after a revenue warning. This is not very logical and more proof that the market continues to be difficult to navigate on a daily basis.
Looking Ahead
All three of the major averages did finish off of their highs, but they all finished green and the volume continues to increase daily. The DOW was the weakest of the three major indices closing almost flat with a gain of just over +1 point. The S&P finished up almost +2 points and the NASDAQ gained +16 points. Looking at the charts of the indices, the Dow made another attempt at the upper trend line of its trading channel at around 10,345. Yes, the Dow is above its 50 and 200MA, but a close above the trend line on good volume is a must if the Dow is to continue higher. The Dow is now stuck between the 200MA and the trend line. I believe we will see a commitment in one direction or the other this week with the volume picking up and finishing with a highly volatile day on Friday (triple witching Friday).
NASDAQ managed to close above the price and psychological level of 1900; this is a positive sign. A follow through tomorrow and a close above 1900 again is critical for the short term or we could see a pullback below 1900 before the next leg up. The 200MA is still over 50 points away, so I will remain in “cautiously bullish” mode until that level is taken out.
Bulletin Stocks
Our list of shorts is growing smaller and our list of longs is growing larger as more and more charts are shaping up for long positions. Speaking of long positions, I closed out a couple of longs today for gains that were a bit less than my normal goal of 10%. I will start taking what I can get on both long and short positions rather than watch gains on an open position disappear if the market reverses. The goal is always 10%, but I will settle for less if the chart indicates that it may pullback on a long or move up on a short. No sense in waiting for a small gain to turn into a small loss. This type of action may increase the amount of times we are in and out of a stock, but I would rather make a few extra trades to reduce the risk of losing profits.
Stormy Forecast
A third hurricane is set to hit the U.S. in the next few days. Florida has recently been hit by two hurricanes that caused billions in damage. Now Ivan, the biggest of the three hurricanes, is coming onshore somewhere in the Gulf of Mexico. It will not be pleasant for anyone caught in the path of the storm. For the stocks of companies that are affected by these hurricanes, it probably will not be pleasant either.
The two storms that already hit caused billions in damage due to homes and businesses being damaged, crops destroyed, and tourism hurt. These are just some of the ways that the damage is done. There was a minor blip in unemployment numbers in the most recent release due to the hurricane. There may be another blip in the next reading, this time due to hurricane Ivan. Some may try to spin it as a very shaky job market, but anything minor will most likely be workers filing due to the hurricane.
The insurance sector will most likely to be damaged again. They have already taken two hits in Florida. Hurricane Ivan may put more pressure on this already shaken sector. A few years ago, a triple punch like this would have knocked the industry out. Insurers are now more diversified in their coverage areas. This strategy can spread out the risk and reduce the amount of damage that an individual insurer takes.
We will also need to pay attention to the housing sector. Chances are the housing sector will benefit from the hurricane. After the damage is done and the clean up has taken place, people will need to build again. As the housing sector cools off due to the rising interest rates, we have been watching for these stocks to become possible short candidates. With the hurricane rebuilding, the housing sector may see a bounce over the short term. As always, we will be ready to react to the reaction. Let's just hope everyone in Ivan's path stays safe.
OTC BB Watch List
- ANTR
- MDPA
StockCharts Listing
Please vote for us at StockCharts daily, thank-you for taking the time to vote.
http://stockcharts.com/def/servlet/Favorites.CServ...
Please tell a friend about our service. We would like to become a referral service only. With your help, we can be. As always, thank-you for your support past, present and future! Have a great night everyone; we'll see you all tomorrow evening.
|
|
|
|
|
|
|
