|
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...
|
|
Sunday, February 13, 2005
Market Recap
For the second Friday in a row, the markets had a very strong day and shook off what would have normally been bad news for the markets. Last Friday it was a disappointing job report and this Friday, it was a disappointing earnings report from Dell Computer. The Nasdaq finished higher by +23 points, the S&P closed up +8 points, and the Dow was up +46 points. The Nasdaq was the leader of the rally as it was up more than 1% fueled more specifically by a strong rally in the SOX index of over 3%. I had mentioned Thursday, the one bright spot was the strength of the SOX index and on Friday it certainly did not disappoint. Friday's volume on all 3 major indices was above average indicating that this bounce was more than just short covering.
After falling out of the bear flag on Thursday, Friday's action put the Nasdaq back up into the bear flag I showed on the chart. There are two things we need to take from this action. The first is that the bounce Friday was strong because of the move on strong volume back above resistance at the lower short-term trend line (bottom of the bear flag). More importantly, we still have to respect the bear flag on the chart that could still easily resolve to the downside so we must remain cautious with our buys. I had also mentioned Thursday that a visit to the lows of 2040 should send the index lower. The low of the day was 2039.72, at which point the Nasdaq took off and managed to close all the way up above resistance at 2075, a very powerful move that caught many shorts by surprise.
The markets have been in whipsaw mode the last couple of weeks so, despite the strong showing on Friday, we still need to be cautious until the markets can show us some stability and an ability to hold its gains for more than a couple of days. I am still a bit concerned at how the Nasdaq is lagging both the DOW and S&P. I will not jump back into the market with both feet until the Nasdaq can close back above its 50MA currently at 2104.
C.E. “No”
Does a CEO make a company? Some may have been saying that recently, with the shake up at HP. CEO Carly Fiorina was booted out this past week. Being blamed for the lackluster performance in HP's stock and in the computer marketplace, people are now saying with her gone, HP might be a buy.
http://money.cnn.com/2005/02/11/markets/spotlight/...
Fiorina was responsible for the merger with Compaq back in 2001. She has been at the head of the corporation for several years now, most of those being down years in the general economy. The merger came after the bubble years, but buying up a PC maker may not be the best move these days. How many other computer manufacturers have been turning out profits lately? Manufacturers are diversifying beyond PC's or they are dying. HP has always been a somewhat diverse company, but are they diversified enough?
That is the big question for the next CEO. What is funny with people calling HP a buy at this point, is that we have no idea who the next CEO will be. What will they think HP should venture into? Will they make the right calls? Will they set the company up for a buyout? No one knows. Some now look at HP as a potential buy.
HPQ did spike on the news of the ousting, but it had a very weak close and could now potentially be setting up for a fall. Why would people be calling HP a buy when the only thing that has changed is one person exiting the company? Does the CEO have that much power that their sudden absence means the company will no longer be stuck in the rut that it has been in for years? We have not heard anything about who will be running it and what their thoughts are. It is amazing the power that one person can wield when they are at the top of a company. Look at MSO and what happened to that stock when Martha Stewart went behind bars.
We will have to keep at eye on HPQ. This could be very interesting. Once the impact from the news is out of the way, will HP remain above support? Or, will it resume its decline? Did Fiorina make the company? Is she going to break the company now that she is out?
Please tell a friend about our service. As always, thank you for your support past, present and future! We will see you Monday evening.
Do not forget to check your short-term holdings and know when those companies are reporting earnings. Holding a stock through earnings is risky and I do not recommend it. You can always buy the stock back after the dust settles.
http://www.fulldisclosure.com/highlight.asp?client...
Stockcharts listing
Please vote for us once a day at stockcharts.com. http://stockcharts.com/def/servlet/Favorites.CServ...
Thank you all for voting. |
|
|
|
|
|
|
