|
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, May 18, 2005
Market Recap
Oil prices fell below $48 today, interest rates fell in the bond pit, and stocks were on fire. The market continues on its rampage, up big for the third day in a row, blasting through resistance levels of 10400, 1180 and 2020 on the DOW, S&P and NASDAQ respectively. The DOW gained 132 points, the NASDAQ rallied 26 points and the S&P was up 12 points. Volume was above average today and this above average volume on this break above key resistance levels is a good sign, technically. This strong volume indicates that Institutions supported the buying today and that is very good news for the Bulls.
What Caused It?
The CPI number came out before the bell today and showed very little inflation on the horizon. This was the news that the markets wanted to hear and could keep the Fed from raising rates at the next meeting. Last night we said that this CPI number, if good, would be the green flag for the bull to start its run and today it raged out of the gate and powered through all resistance levels on the three big indices. Those levels were 1180 S&P, 10400 on the DOW and 2020 on the NASDAQ, as mentioned previously. I am repeating them because I want you to remember them. These are the levels that we need stay above. If the market falls back below these levels, it is just a case of more churning like we have seen for months now, back and forth, from side to side. Now this market has a chance to break free and move up. Let's see if it has the horses to get it done.
The Fed and the Cyclical's
China's industrial numbers came out today and they were very strong. On this news, all of the basic material stocks like copper, steel and metal rallied. Just when it looked like there would be a rotation out of these cyclical stocks and into technology stocks, this news comes out and spoils the short party. The CPI number today also helped these industrial stocks. The home builders were way up today on the CPI number and of course, many of them are near new highs. Our stops were taken out on the home builder stocks that we had in April. Obviously it was a deep shakeout because now they are back and challenging new highs, if you can believe that. As mentioned in a previous commentary about the cyclical stocks, if you believe the Fed is out to slow down the economy, these are the stocks to be short. I do not believe this CPI number today is enough to stop the Fed from raising rates. It is good news and, in my opinion, they do not need to raise rates, however, I think that the Fed is on a mission to slow down what they believe is a housing bubble. If this is the case, we should be shorting the cyclical stocks. I would not bet against housing though. The housing stocks are going higher so do not short them.
The Fed and the Economy
It would seem that the Fed's tactic to raise rates in a measured approach may finally be starting to pay off. The core CPI numbers today showed very little inflation and indicated that the fears of inflation are unfounded. Prices were up slightly, but that was expected. The good news is that there should be less reason to continue with rate increases. We have seen interest rates ticking up by a quarter point every few months. The economy has been performing reasonably well in that time and prices have not gotten out of hand. Even oil seems to be falling back to respectable levels.
Having interest rates steady may be the smart thing to do at this stage; there is no reason to raise them further after this CPI number today. However, Greenspan is pro bond market and negative on equities. He just cannot stand to see stocks go up or anything that would create wealth for individuals for that matter. Housing has made many people wealthy on paper in the last couple of years. Homes have been rising in value at a tremendous pace, lining homeowner's pockets with equity. He wants to stop this like he stopped the Internet bubble in 1999. If he continues to raise rates for no reason, his agenda will be obvious.
Update on short positions
This 3 day rally in the markets has taken many of the stocks on our short watch list up to their descending trend lines. I have these charts for you tonight so that you can see that many are running into resistance and should reverse course soon. With this 3 day run, there should be some profit taking and when there is, we will see these stocks give back some for sure.
New Feature - “Tech's Corner”
We have added a new area to the website called “Tech's Corner”. This is an area where you can find a collection of our very own Technique, Alan Maxfield's daily analysis, charts, and other information that he may want to share with us each night. This will make it much easier for Tech's followers to find his information without searching through the message board. We hope that you will enjoy it.
”My Notes”
We would like to introduce a new feature on the website, “My Notes”. This link is located in the top right corner. It is an area where you can store notes for yourself in an organized manner. Just click on this link and a note pad will come up, allowing you to save any trading notes you may have. I use this feature myself and it is quite handy. A big thanks to Mike Tojo, our webmaster for creating this tool.
STHQ Chart Index
If you go to the chart index in the left side menu, you can review and study charts that we have annotated for each stock listed in the past.
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!
Earnings Calendar
We have added the earnings link for each stock on the bulletin. To access the link for earnings, you can either use the link below or click the link on the bulletin for the corresponding ticker. Click the online bulletin in the left side menu for access to the earning calendar for each stock listed. It is not recommended to hold a position through earnings. You can always buy the stock back after the dust settles.
http://www.earnings.com
Stockcharts Listing
Please vote for us once a day at stockcharts.com.
http://stockcharts.com/def/servlet/Favorites.CServ...
Thank you all for voting.
|
|
|
|
|
|
|
