Daily Stock Pick of the Day - Fri., Oct 1 2010

Markets faltered a bit today.  After being up in a big way earlier today, the Dow fell 47 points to close at 10,788.  The S&P and the Nasdaq followed, closing at 1,141 and 2,368 respectively.  The S&P fell 3 points and the Nasdaq fell 8 points.  Certainly, some profit taking is probably in order at the end of such a strong month.  To see the stock market pulling back in such an orderly fashion is encouraging.  I think selling pressure has been waning, but there is still so much uncertainty in the economy that I remain cautiously bullish.

The energy sector rose today.  Oil prices rose above $79/barrel today.  Other oil stocks like Valero (VLO) and Exxon (XO) rose in similar fashion.  Consumer staples and materials fell.  The big news on the scene was the report from the Wall Street Journal that said McDonald's (MCD) is considering dropping it's healthcare plan for it's hourly employees.  McDonald's is doing a bit of backpeddaling today, but it's hard to see how they're not considering this.  Boeing (BA) was in the news today after they reported that they are pushing out delivery of their 747-8 freighter until the middle of next year.  Boeing rose almost 1% on the news after they said it would not impact them financially.

The stock pick of the day is Titanium Metals Corp (TIE).  Titanium Metals is a producer of titanium melted and mill products for commercial, aerospace, military and industrial applications.  So many stocks today are overbought or close to being overbought.  TIE is bucking that trend and still hovering around it's 50-day moving average and closed today at $19.96.  It spent most of the week being accumulated by traders.  It's also been experiencing a series of higher highs and lower lows, so I definitely think strong support is building for this stock.  I like this entry point here and up to about $21.  I put the first target between $23-$24. 

As always, stay cautious and happy trading!  Check out Wall Street Survivor below!

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