|
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...
|
|
Wednesday, September 29, 2004
Market Recap
The market was up today as oil prices fell slightly below $50 per barrel. The Dow was up +58 points and closed above its 50 SMA. The NASDAQ also had a good day with a gain of +24 points, and the S&P rose +4 points. These three indices are now trading between their respective 50 and 200 SMA's which leads us right back to the directionless market we have been in for months. All we can do in this type of market is to continue targeting 10 - 20% gains on trades until the bulls commit to taking the market higher. Today we locked in gains of 13% on TOPT and 7% on TGA. I will continue trade for these kinds of gains until all indices show signs of breaking out above their 200 SMA's on volume. When this happens, we can stay in our positions longer and let them run. TOPT and TGA are stocks I would like to re-enter as they pullback so do not lose sight of these future big winners.
Gaga For Google?
The analysts who were screaming about how far out of whack the Google pricing was just a few months ago are now singing a different tune. There is a previous commentary on this pointing out how the IPO price fell from $135 to $85 before the offering. They were afraid nobody would buy the stock at $135 so they brought the price down. Now all of a sudden, some think the stock should be valued at $145. What's changed in just a month?
This is quite a volatile situation these analysts are setting up. Google is climbing based on what the analysts are saying. In yesterday's commentary, I talked about analysts and how they can manipulate the numbers to come up with their own valuation. What I fear about this situation is a potential for a Google disappointment come earnings call.
Everyone is talking about how much earnings will grow and how much money Google is set to make. What happens if Google disappoints? At this lofty price level, there is no room for error, it is priced for perfection, and even if they do meet or exceed earnings, it will most likely be a “sell the news” scenario. Remember, the only source of revenue Google has is advertising. In contrast, Yahoo has many other sources of revenue other than advertising. If there is a slight pullback in advertising spending, then that will hurt Google in a big way.
The bar has been set extremely high for this company and my advice is, if you are investing in Google (as opposed to trading it), at these highly inflated prices, keep a very close eye on your investment. In my opinion, some investors will be very disappointed if Google fails to live up to the image that is being painted.
Just remember it is the analysts telling you that Google is going to set the world on fire. Before you fall for any of it, be sure to research the analyst to see if they had a part in underwriting the IPO - that is key. If they did, they will have a vested interest in the stock. For example, CSFB was one of the underwriters in the IPO, and it just so happens the analyst that put the $145 price target on the stock yesterday works for CFSB. Also research when the lock-up expires for insiders to sell. I would not want to be holding long when all those shares go on the open market for sale.
Do you remember the old cocoa puffs commercial when the bird says he is “cuckoo for cocoa puffs”? Right now people are going “Gaga for Google.” Only time will tell how this investment will turn out.
OTC BB Watch List
- TKER Back for another appearance, mentioned here last week.
- GASE Beautiful pennant, see tonight's chart
- TREN
Here are some recent IPO's with good looking charts. They will not be added to the Bulletin because the volume is too thin.
- LMRA
- MRLX
- LPL
- SRVY
- RNOW
- ECST
*** Most of these IPO's were up today.
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.
|
|
|
|
|
|
|
