I'd like to present two sectors I think could have a profitable run this year.
Healthcare stocks like JNJ, ABT, BMY and pharmacy benefit managers like Medco have been recent benefactors of the institutional money. I do add a note of caution here, though. The current healthcare debacle currently going on in Washington DC could take this sector under. However, even if the healthcare reform bill gets signed, you'll want to look at health services companies like Medco or SXC Health Solutions (MHS or SXCI) because they will still benefit greatly.
Within the Tech sector, the chipmakers have been performing well recently. The chipmakers could be recipients of a much needed "refresh" cycle as businesses move to upgrade their current computing, storage or networking hardware. Take a look at companies like CY, MU, STX or AMD.
On another note: We're getting to close to options expiration Friday (next week). Expect some volatility. As always, be cautious.
Obligatory disclaimer: Past results do not guarantee future performance. The suggestions above are simply suggestions and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Happy Trading!
Queen of Charts
Thursday, March 11, 2010
Wednesday, March 10, 2010
Daily Stock Pick of the Day - Thurs., Mar 11, 2010
As I wrote in Monday's post, I think the market is looking overheated at this time. I've sold pieces of my positions in the SPY and the QQQQ's today in an effort to begin raising cash. If the market returns to 20 or 50-day moving average, I'll take a fresh look at it and decide on a good re-entry point. For now, I've decided to lock up the profits.
I've also mentioned in prior posts that I think the SDS, the ProShares Ultrashort S&P 500, could be a good hedge when the market takes a dip. If you look at today's chart (I use Stockcharts.com), you'll see it made a new low at closing today at $32.40. The downside pressure is starting to wane on this -- if the market falters, I expect this to rise to about $35 or so.
Obligatory disclaimer: Past results do not guarantee future performance. The suggestions above are simply suggestions and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Happy Trading!
Queen of Charts
I've also mentioned in prior posts that I think the SDS, the ProShares Ultrashort S&P 500, could be a good hedge when the market takes a dip. If you look at today's chart (I use Stockcharts.com), you'll see it made a new low at closing today at $32.40. The downside pressure is starting to wane on this -- if the market falters, I expect this to rise to about $35 or so.
Obligatory disclaimer: Past results do not guarantee future performance. The suggestions above are simply suggestions and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Happy Trading!
Queen of Charts
Saturday, March 6, 2010
Daily Stock Pick of the Day - Mon., Mar 8, 2010
With Friday's surge in the market due to the unemployement numbers, stocks are looking a bit "toppy" at this time. At this time, I feel it's a better move to take profits, raise cash and sit on the sidelines.
The SPX, the DOW and the NASDAQ are all sitting at or near their highs posted in January. To me, it's a strong probability that we will touch those highs and then retreat a bit, perhaps even as far back as the 50-day moving averages. A pullback of this nature will offer us a chance to enter some new positons at "value" prices.
For those interested in a hedge, I suggest looking into buying some put-side protections (volatility has swung lower recently), or you could pick up shares of the SDS (ProShares Ultrashort S&P 500). On Friday, it touched the lows hit in January, and then you can guess what happened from there.
Obligatory disclaimer: Past results do not guarantee future performance. The suggestions above are simply suggestions and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Be Cautious and Happy Trading!
The Queen of Charts
The SPX, the DOW and the NASDAQ are all sitting at or near their highs posted in January. To me, it's a strong probability that we will touch those highs and then retreat a bit, perhaps even as far back as the 50-day moving averages. A pullback of this nature will offer us a chance to enter some new positons at "value" prices.
For those interested in a hedge, I suggest looking into buying some put-side protections (volatility has swung lower recently), or you could pick up shares of the SDS (ProShares Ultrashort S&P 500). On Friday, it touched the lows hit in January, and then you can guess what happened from there.
Obligatory disclaimer: Past results do not guarantee future performance. The suggestions above are simply suggestions and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Be Cautious and Happy Trading!
The Queen of Charts
Thursday, March 4, 2010
Daily Stock Pick of the Day - Fri., Mar 5, 2010
The action on Wall Street was not very impressive today. I'd like to see the bulls step in a bit more and take this market higher, but there doesn't seem to be enough to compell them to step in at this level. Any entries into the market at this time should be carefully scrutinized. Without a convergence of buyers, your capital won't be well spent.
Still, though, it's always good to build a watch list of good quality stocks. When the market is ready to move higher, you'll be ready to make an entry with some solid picks.
One of the stocks on your list should be Coca-Cola (KO). There's a number of good reasons to pick this one up. It did lead the market today, but you can still pick it up at a discount to the 50-day MA. It's trading around $54. The only reason it's discounted is because of the proposed acquisition of the bottler. That won't stop KO from charging ahead. They offer healthy growth prospects overseas (think China) and they've got a great dividend yield (3.3%).
If you believe that the economy is going to grow at an anemic pace this year (like maybe, 2%), then your portfolio should have solid stocks like KO in it. Hey, at least you'll be getting paid while we trudge through this recession.
Check it out and let me know what you think -- feel free to post a comment.
Obligatory disclaimer: Past results do not guarantee future performance. The suggestions above are simply suggestions and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Happy Trading!
Queen of Charts
Still, though, it's always good to build a watch list of good quality stocks. When the market is ready to move higher, you'll be ready to make an entry with some solid picks.
One of the stocks on your list should be Coca-Cola (KO). There's a number of good reasons to pick this one up. It did lead the market today, but you can still pick it up at a discount to the 50-day MA. It's trading around $54. The only reason it's discounted is because of the proposed acquisition of the bottler. That won't stop KO from charging ahead. They offer healthy growth prospects overseas (think China) and they've got a great dividend yield (3.3%).
If you believe that the economy is going to grow at an anemic pace this year (like maybe, 2%), then your portfolio should have solid stocks like KO in it. Hey, at least you'll be getting paid while we trudge through this recession.
Check it out and let me know what you think -- feel free to post a comment.
Obligatory disclaimer: Past results do not guarantee future performance. The suggestions above are simply suggestions and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Happy Trading!
Queen of Charts
Wednesday, March 3, 2010
Daily Stock Tip of the Day - Thurs., Mar 4 2010
I'm looking at DeVry (DV) as a possible entry. Truth is, a lot of stocks are looking quite extended at this point, so caution upon entering any trade at this time is wise.
I like the entry around $63 or maybe, the low $64 range and it could break out right through $65 or higher.
I think DeVry is a great recession play. Obviously, a lot of people are out of work right now and are going back to school to improve skills or get trained in something new. They're a leader in offering post-secondary education across the U.S. and Canada (for a profit) and they have been growing sales and earnings at an impressive rate (28% and 69% respectively for Q4'09 vs. Q4'08). Even better, analysts are expecting earnings to rise 50% or more in 2010. This is one heck of a recession if the outlook is that rosy.
Obligatory disclaimer: Past results do not guarantee future performance. The suggestions above are simply suggestions and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Happy Trading!
Queen of Charts
I like the entry around $63 or maybe, the low $64 range and it could break out right through $65 or higher.
I think DeVry is a great recession play. Obviously, a lot of people are out of work right now and are going back to school to improve skills or get trained in something new. They're a leader in offering post-secondary education across the U.S. and Canada (for a profit) and they have been growing sales and earnings at an impressive rate (28% and 69% respectively for Q4'09 vs. Q4'08). Even better, analysts are expecting earnings to rise 50% or more in 2010. This is one heck of a recession if the outlook is that rosy.
Obligatory disclaimer: Past results do not guarantee future performance. The suggestions above are simply suggestions and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Happy Trading!
Queen of Charts
Monday, March 1, 2010
Daily Stock Pick of the Day - Tues., Mar 2, 2010
Today's pick is United Therapeutic (UTHR). It's currently tradng in the low $58 range and has a real shot at climbing to $62 (an approximate 6% increase). It's relative strength (RS) doesn't look overheated, as it is currently sitting at about 56. United Therapeutics has room to rise.
United Therapeutics develops therapies to treat cardiovascular, infectious diseases and cancer.
If you like this pick, other stocks to consider in this group include Viropharma(VPHM), Celgene (CELG) and Cubist Pharmaceuticals (CBST).
Obligatory disclaimer: Past results do not guarantee future performance. The suggestions above are simply suggestions and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Happy Trading!
The Queen of Charts
United Therapeutics develops therapies to treat cardiovascular, infectious diseases and cancer.
If you like this pick, other stocks to consider in this group include Viropharma(VPHM), Celgene (CELG) and Cubist Pharmaceuticals (CBST).
Obligatory disclaimer: Past results do not guarantee future performance. The suggestions above are simply suggestions and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Happy Trading!
The Queen of Charts
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