|
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, February 28, 2005
Market Recap
No follow through today on Friday's market rally. The double top formations in the Dow and S&P charts will have to wait at least another few days before there is another attempt to break through. The Dow was down 75 points today with the NASDAQ losing 13 and the S&P down 7 points. BIIB and ELN got crushed on bad news about one of the drugs they were partners in. BIIB lost 42% and ELN lost an amazing 70% of its value today alone. This hurts an already damaged biotech index and it just goes to show, even a big company like BIIB is not immune (no pun intended) to the brutal sell off's that occur when bad news is released. Like always, this sell off today in these two companies is an over reaction. I am not saying to buy these two stocks but they do create opportunity for bounce plays.
Housing Stocks
The home builders got hammered (no pun intended) today when the housing numbers were released this morning and they showed January starts down 9%. In my opinion, it is just a seasonal number as less building is done in the winter months. I believe buying the housing stocks on every pullback is the play. As we get closer to spring and summer, more homes will be built and sold as people are still trying to take advantage of historically low interest rates. Housing stocks have PE's of less than 10 and with sales ramping up, this should drive these stocks higher. Keep in mind that most of the housing stocks are 80-95% institutionally owned. What this means is that sooner or later, these institutions will want to lock in profits on these amazing run-ups over the last year. When they start to unload is still any ones guess but when they do, they will be selling to the dumbobarries near the highs, you can bet on that. All you can do is look for heavy volume distribution days. When you see a string of these type days, it is time to move over and get out of the way. I will keep an eye out for that but for now they are the market leaders.
End of February, bring on March
Today was another end of month trading day as we end February and begin a new month tomorrow. Today's market action could have been profit takers selling to lock in profits for this month. No doubt a little window dressing and shuffling of portfolio's for the big money managers also. Now we start a new month, keep in mind that historically March is a very good month for stocks. I am optimistic that March 2005 will be good as well.
Flashback: Krispy Kreamed
Krispy Kreame (KKD), the doughnut maker, was on our short list for about 6 months. We traded it several times for good gains but I will admit that it would have been better to just short and hold it for the longer term. In this particular case, a longer term, patient short seller could have gained almost 90% on a short position if entered when we first recommended a short at about $36.00 back in March 2004. In last Wednesday's commentary, I mentioned market cycles and how leaders do not lead forever. This stock was a leader over a year ago and is a classic example of how not to invest. The long term investor who bought this stock a year ago and did not actively manage their account has lost an incredible amount of money. It is down from $45.00 to $5.00 in less than two years. I received an email from a member that said he had been short since we recommended it and he covered his short on Friday for an 81% gain. He thanked us for the great call and recommended we do a flashback story on KKD.
The following is a flashback of some of the comments between March and August 2004, as we followed this stock lower on our bulletin short list. Notice that we predicted the stock to fall to single digits and that prediction came true. This stock closed at $5.36 on Friday, an amazing fall from grace for this previous market leader.
Mar 14, 2004
This donut maker's PE is too high and cannot be sustained IMO. A longer term short.
Mar 28, 2004
Bear flag with a close at the low. Short right now or wait for limit of $36.00
Apr 18, 2004
Slower mover, over time, it should go down. Donuts are bad for you and so is this stock.
May 13, 2004
Down 60% since listed. What ever you do, doughn't cover this short. LOL
May 18, 2004
Down 60% since listed. Still falling no reason to cover yet. Teens soon.
May 25, 2004
Down $16.00 since listed. Still holding short. I still think it is going to get Kreamed.
Jul 5, 2004
The carbs are high and the stock is low. A perfect combination for our short position.
Jul 11, 2004
Down nearly 50% since listed and headed for single digits. This stock is getting Kreamed.
Jul 18, 2004
Down nearly 50% since listed. This stock is fried.
Jul 20, 2004
Down nearly 50% since listed. Shorting this donut stock has been real sweet.
Jul 29, 2004
My single digit prediction is looking better every day on this junk food junky stock.
Aug 3, 2004
Doughn't count this short position out yet. I still say single digits is likely.
Aug 4, 2004
52 wk low. Broke below latest support area and caved in like a doughnut with no jelly.
Aug 8, 2004
52 wk low. Down $21.00 since listed. The only one's making "dough" are the shorts.
Aug 11, 2004
52 wk low today. Continues to get cooked. Down $21.00 since listed.
Aug 12, 2004
52 wk low. This donut stock continues to crumble. Down $22.00, over 60% since listed.
Aug 19, 2004
The longs eyes are glazed over. They cannot see it is down $22.00, over 60% since listed.
For New Members
For all of the new members with us, please make sure to read the link “How to use Bulletin” at the bottom of the Bulletin page on the website. It is critical that you know how to use this trading tool before trying to trade the stocks mentioned. The effectiveness of your trades will diminish if you do not completely understand how the information is presented.
Please Tell A Friend
Please tell a friend about our service. As always, thank you for your support past, present and future! We will see you Monday evening.
Earnings Calendar
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. |
|
|
|
|
|
|
