|
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...
|
|
Tuesday, August 16, 2005
Market Recap
Stocks got hammered down pretty hard today with heavy selling accelerating late in the day that took the indices down below critical support levels. We have charts of these indices tonight to update you on the action. The DOW got hit for a triple digit loss of 121 points. The NASDAQ lost a hefty 30 points, the S&P gave up 14 points and all these indexes closed at the lows of the day. Tomorrow the PPI report will be out before the bell and if it is disappointing, we can expect to see some follow through selling at least through the morning and hopefully buyers will show up in the afternoon to support this market.
Breakout Failure
We have seen over the last year in the market how individual stocks have broken out and then failed miserably. We have mentioned many times how breakouts have not worked so it only seems fitting and not surprising at all for the indices to also fail their breakouts. Recently, the NASDAQ, S&P and RUT had all broken out to 4 year highs but of course since then, they have all fell back below their pivot points just like many individual stocks have.
It is also important to remember that we are entering September, historically the worst month of the year for stocks. History has also shown October to have been the bottom for many markets. So with that in mind, this market could be headed for a tumble for the next 6 to 8 weeks whereby a new market bottom could be formed from which to rally into the end of the year. If there is a rally at the end of the year, I do not know what will spark it considering the Fed is still on its rampage of raising rates.
The Dreaded Recession?
There is tremendous growth and demand in the new consumer technology products coming to market, thus sparking the tech rally a few weeks back. But, the rise of short term interest rates coupled with higher energy prices could slow that demand and as a result, slow consumer discretionary spending. Wal-Mart said today that they think higher gas prices have kept some consumers away from their stores. This is huge news because if people would not spend money on gas to go out and shop at the biggest retailer in the country, they would not go anywhere else to shop either. This trickle down effect will have a big impact on earnings for other companies as well.
With a spread of roughly 75 basis points between the 10-yr note and the Fed Funds Rate, there is still limited near-term risk of an inverted yield curve. However, if the Fed continues to raise rates that yield curve will flatten out and that will not be good for the stock market. All we can do is hope that Greenspan does not over do it with the raises. He has a history of overdoing the moves both up and down. If he over does it “up” like I believe he will, the economy is looking at a recession sometime next year. It goes without saying, but I will say it anyway as a big reminder, stocks do not do well in a recessions. Greenspan could ruin the party for a lot of people in this country if he does not get off of his high horse soon.
STHQ Portfolio
Our portfolio has held up extremely well in this market down turn. We have held on to our long positions because we felt that the market was just experiencing a pullback after a nice bull run. With support levels now either violated or about to be, we must become more defensive. We may end up having to lock in what profit we have and sitting out in cash to see what the market is going to do. It never hurts to conserve cash so that we can have plenty of it available, when and if the market should bottom out in October. We may look at a short or two as well and I have some charts tonight of some possible short positions. We are not giving up on the bull market yet, this is just a word of caution. As always, plan your trades and trade your plan and you will control your stocks instead of letting them control you.
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.
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
|
|
|
|
|
|
|
