Daily Stock Pick of the Day, Friday, Oct 29, 2010

Stocks were wobbly today while the Nasdaq extended its winning streak to make it seven straight sessions of gains.  The Nasdaq gained 0.16%, closing at 2,507.  All in all, not too bad overall.  The Dow was only down 0.1% and closed at 11,113 while the S&P 500 closed up just a bit at 0.11% at 1,183. 

On the minds of traders and investors today was a mixed bag of earnings from companies like 3M (MMM) -- they actually had very strong quaterly results, but provided a very dim outlook.  Among the tech names, Motorola (MOT) made some nice gains today after reporting an operating profit of $3mil.  They had a loss of $183 a year ago.  The kicker?  You guessed it -- Google's Android smartphone sales.  Mindshare continues to be occupied by the upcoming policy-setting meeting next week by the Fed, quantitative easing, and, the mid-term elections.  To me, it looks like the investing public is holding steady, for the time being. 

In economic news today, many were surprised at the drop in claims for state unemployment benefits.  The Labor Dept. reported a drop of  21,000 to 434,000, the lowest level since July.  Tomorrow (Friday), brings GDP and consumer sentiment. 

In my opinion, the economic reports will not do much one way or the other to sway the action on Wall Street.  Until we get through some of the events next week, I think we'll see sluggish action and possibly continued pullback in the markets (a mild pullback at best).  I'm actually thinking of picking up some shares of the SPY if it pulls back to the $116 range.

Today's stock pick of the day is:  the Direxion Daily Financial Bear 3X Shares (FAZ) – This is a leveraged ETF that seeks daily investment results, before fees and expenses, of 300% of the inverse of price performance of the Russell 1000 Financial Services index. The FAZ creates short positions by investing at least 80% of net assets in financial instruments that, in combination, provide leveraged and unleveraged exposure to the index.  With all of the fallout from the foreclosure crisis, it seems to me that a bearish position is more likely to produce gains.  This kind of ETF is risky, but if you're bearish on financials, it's worth considering as a trade (not investment).

Until the foreclosure debacle came to light, financials were gaining ground and looking healthy again.  The FAZ had been in a steady decline since August, dropping below it's 50-day and 200-day moving averages.  It closed today at $12.56 and has seen some accumulation days through much of October.  The stochastics and the MACD signal there could still be some room to grow.  My first target is $13.50 and if it can close for several days above that, I think it will move up to $14.85-low $15 range.

As always, stay cautious and happy trading!

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.

Daily Stock Pick of the Day - Thurs., Oct 28, 2010

Stocks opened lower today due to the uncertainty regarding the Fed's stimulus plan, mixed economic data and a higher dollar.  However, the Nasdaq tacked on 0.2% for a sixth straight gain, closing above the 2500 level for the first time since April 29. Semis were an area of strength. The Philadelphia semiconductor index surged 3.1% to a three-month high.  On the other hand, the Dow lost 0.4% and S&P 500 lost 0.3%. Volume was a bit higher on both major exchanges.

Apple (AAPL) reported today that they expect gross margins to decrease next year due to the fact that the iPad contributes in large part to their annual revenue.  They expect margins to fall approximately 36% in the current quarter (down from 39% prior).  Apple stock was lower in after-hours trading.

In other tech news, Broadcom (BRCM) rose 11% in trading today.  The catalyst:  strong quarterly sales of their chips that are used in (you guessed it) smartphones, like the iPhone.  They had a 44% rise in quarterly revenue.

The stock pick I'm looking at today is Jet Blue (JBLU).  Jet Blue provide passenger air transport in the US, Puerto Rico and 11 other countries.  This stock trades under $10 and lately, it was trading in a range between $5.40 and $6.40.  However, on Oct 20, it broke out of it's base and swung to just over $7 per share.   Over the past two weeks, shares have been under accumulation.  My target for JBLU is $8.50.

Thursday will bring an update on jobless claims and Friday will bring GDP numbers and consumer sentiment.   Until then, happy trading and definitely take some time to check out Wall Street Survivor below.  It's fun and it's free!  Compete for cash prizes!

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.

Daily Stock Pick of the Day

Stocks closed today a little higher, but trading was mild today as investors wait out a number of economic reports, annoucements and the results of the mid-term elections in the coming week.  Stocks were lower after the opening, in part due to a strengthening dollar, weak earnings and disappointing housing news, but a positive consumer confidence report helped push stocks into positive territory.

The Dow rose 5 points to close at 11,169. The S&P 500 was neutral at 1,185 and the tech-heavy Nasdaq ended up 6 points to finish at 2,497. The CBOE Volatility Index was above 20.

In economic news, consumer confidence rose very little in October and remains at historically low levels.  Concerns about the job market continue to permeate the market  The Conference Board reported confidence rose to 50.2 in October from a revised 48.6 in September, according to the group. Economists were expecting a reading of 49.2.


The prices of U.S. single-family homes fell in August, again remaining at levels that are historic lows after the popular home-buyer tax credits have expired -- according to the Standard & Poor's/Case-Shiller home price report.  Their report showed that metro areas declined .3% in August over July (seasonally adjusted).  This dip follows a .6% gain in July.

So now what?  For me, I'm mixed.  The trends in the finacial markets due to the foreclosure crisis makes me critical of what lies ahead.  Consumer confidence isn't showing much strength.  Housing is still way down.  So, in the short term, I think this rally is losing some of it's momentum.  However, in light of the event last week, wherein the S&P 500's 50-day moving average crossed above the 200-day, I'm rather bullish on a more intermediate-term basis (think 60 days or so).  This rally certainly has legs.  I'm cautious about what lies ahead for November, but, even a mild pullback would probably be a healthy start up to a strong year-end rally.

Today's stock pick of the day is one I want to revisit.  In August, I wrote about Coinstar (CSTR).  At the time, it was trading between $46-47 range and had been pulling back a bit.  It did not find support at the 50-day moving average and actually, it fell quite a bit below it, even briefly piercing it's 200-day moving average intraday in September.  Since October 8, however, it has rebounded nicely back above it's 50-day moving average again.  Here's what I'm watching for:  a close at or above $48 on volume of at least 1mil shares.  Then, I think it's off to the $50-$52 range in a swift manner.

Remember stay cautious -- Jobless claims and GDP are coming up on Thursday and Friday.  Happy Trading!

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.

 

Daily Stock Pick of the Day, Tues. Oct 26, 2010

Stocks remained slightly higher Monday even though stocks sold off in the final hours of trading.  Financial companies fell in the wake of the continued fallout of the foreclosure crisis.  Stocks like Bank of America and JP Morgan fell.  BAC closed down 2.5% and JPM fell 1.2%.  The Dow closed up 31points and closed at 11,164.   The S&P 500 closed at 1,185, up 2 points, or .2%. The Nasdaq also advanced closing at 2,490, up .4%.  The CBOE Volatility Index, closed above 19.

The dollar fell almost 1% against a basket of foreign currencies on news that the Group of 20 finance ministers reached an accord overt the weekend to stop using competitive currency devaluations. Analysts see this decision as a reason to believe the dollar will continue to fall.  Gold rose approximately 1%, near $1,336 per ounce.  Oil  gained today, rising to almost $82 a barrel.

While it's good to see the rally continue, continued caution is in order.  We have an onslaught of economic news this week, which will most certainly weigh on the minds of investors.  Earnings reports continue to roll in, the upcoming election and talk of Fed monetary policy can serve as impetus to join the rally, or a belief it's time to step aside if investors feel that not enough economic progress is being made.  The Case-Shiller Home Price Index comes out tomorrow (Tuesday) and the rumor on the street is that it's not looking positive.

I'm looking at Las Vegas Sands (LVS) today.  They operate casinos in Las Vegas and Asia.  Their stock, like others in the gaming sector, hit rock bottom in the spring of 2009.  Today, it's made incredible strides in recouping its value on Wall Street and has plenty of good growth prospects.   LVS hit a high today at 39.88, a number not seen since 2009.  Lately, their performance has been driven by the Asian markets (Singapore, Macau) and they've reported four consecutive quarters of earnings growth.  It might pull back with the general market and an entry in the $37 range would be great. 

As always, stay cautious and happy trading!

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.

Daily Stock Pick of the Day, Fri., October 22, 2010

Stocks ended the day a little bit higher after the bounce on Wednesday looked like it was taking a breather.  At one point during the day, The Dow climbed as much as 100 points only to close up 38 points, at 11,146, at the end of the session.  Both the S&P 500 closed at 1,180, up 2 points and the Nasdaq closed at 2,459, up 2 points. The CBOE Volatility Index rose above 20.  Among the key S&P 500 sectors, utilities, telecom and energy fell, while consumer discretionary stocks rose.

Stocks in the news today included Netflix (NFLX) which wowed investors Wednesday when they reported strong third-quarter subscriber growth and retention.  Earings fell a penny short of Wall Street's target, however.  They earned $0.70 a share, an increase of 35% compared to a year ago. Revenue was $553.2 million, an increase of 31%.  Netflix netted a lot of new customers over the summer while spending less to secure them. They raised their guidance for Q4. Shares rose 12% today in fast trading and closed the day at $172.69.

Today's stock pick of the day is Checkpoint Software (CHKP).  They're an Israeli provider of internet security software, hardware and services for consumers and businesses.  On Wednesday, their earnings report showed that the beat expectations, both on top line growth and bottom line.  Sales increased not just here in the states, but across the globe as well.  Consider also that as more people work from remote locations using more mobile technology (smart phones, tablets), it will increase the threat potential to networks and their users.  As computer hackers get more clever in their attempts to break through secure networks, Checkpoint will continue to benefit from these trends by expanding their offerings within their cutting edge software and hardware lines to meet customer needs.  It closed today at $40.58 and looks like it has a little room to grow into the $42-$44 range.

As always, stay cautious and happy trading!

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.

Daily Stock Pick of the Day - Thurs., Oct 21, 2010

Stocks tumbled yesterday in response to several factors.  An interest rate hike in China, the dollar rose off of recent lows and growing concerns surrounding the foreclosure debacle all led to the broad decline in yesterday's market.  Today, however, it seems investors are putting aside their concerns after several corporations posted positive earnings reports.  Wells Fargo beat the street when it reported 3.34 billion in net income for the third quarter.  US Bancorp saw its shares rise after it reported an increase in corporate loan demand -- the first increase in about two years.  The Fed also reported that they are seeing "modest signs of growth" in the economy. 

The Dow rose 128 points today, 1.1%, to close at 11,107. The S&P 500 and the Nasdaq also gained. The S&P 500 rose 12 points, 1% to close at 1,178.  The Nasdaq gained 18 points, .76% to close at 2,455.  The CBOE Volatility Index, fell back to below 20.  The dollar dropped among a basket of currencies and gold rose off of yesterday's lows.  Stocks in the news today included Novo Nordisk (NVO), which rose 9 points, or 10% on news that the FDA will not approve Bydureon, a competitive diabetes product made by Amylin Pharmaceuticals.  This decision has put a lot of interest in Novo Nordisk's drug, Victoza, which received FDA approval in January.  NVO closed today at $100.48.


Profit-taking in this environment is completely expected.  At the same time, the pullback gave many investors a chance to enter some long positions at prices not seen in recent weeks and it's good to see.  Today's bounce off yesterday's lows may be quite encouraging to some.  However, this does feel like sort of a "dead cat bounce".  The concerns that were so prevalent yesterday haven't completely dissipated, so I'm in the camp that says this market remains vulnerable to further declines.  China's decision to rase their interest rates signals a slowdown in their economy -- and that translates to declines in the companies that do business there.  Couple this with the ongoing concern about banks' exposure to foreclosure issues (where there's smoke, there's fire), I just don't see a catalyst that could take stocks higher.  Money will continue to sit on the sidelines until some of these issues are resolved.

Today's stock pick of the day is Albermarle (ALB).  Albermarle manufactures polymer additives, catalysts and fine chemicals for the refining, consumer electronics, and chemical markets.  They are scheduled to report earnings tomorrow (Oct 21st) and analyst expect them to report earnings of $0.84 per share on sales of 610 million.  Compare this to their report from the same period one year ago:  $0.57 per share on sales $515 million.  ALB rose 2.5% today and closed at $48.51.  I think this stock still has some steam left in it and could climb to $50.  Yesterday, it fell below it's 10-day moving average, but rebounded above today (a bullish sign indeed). 

Stay cautious and happy trading.  Check out Wall Street Survivor below -- it's free and it's fun!  Compete for cash (who doesn't need a little of that these days?). 

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.






 

Daily Stock Pick of the Day - Tues, Oct 19, 2010

Stocks edged higher today ahead of Apple's (AAPL) earnings report.  As of this posting (after the close), Apple has reported earnings of $4.64 per share, blowing away analysts expectations.  The bellweather tech company said sales of it's popular iPhone surged in it's fiscal Q4.  iPhone sales climbed 91% to 14.1 million during the quarter.  Analysts were expecting earnings to come in at $4.08 per share.  Shares of Apple were halted today, but did close the day at $318. 

The Dow rose 80 points, or 0.7% to 11,143.  The S&P 500 rose 8 points, or 0.7%, to 1,184. The Nasdaq rose 11 points, or 0.5%, to 2,480. The CBOE Volatility Index fell below 19 today.  Leaders today included Bank of America and Citibank -- surprising considering the mess with the foreclosure debacle.  The dollar fell today against a basket of currencies.

I still have a cautious outlook with this market.   The rally currently underway has real strength.  My concern with it comes from the fact that the banks are going to incur steep costs in absorbing the fallout from the foreclosure crisis.  Without a recovery in housing, the economy cannot recover fully.  For now, the trend upward, even at a mild pace, is definitely intact, but without further catalysts, I'm not sure we'll break out much beyond the current levels.  I think anyone with profits in their account right now should seriously consider taking some off the table. 

Today's stock pick of the day is: Skyworks Solutions (SWKS).  Skyworks supplies radio frequency components and analog and mixed signal semiconductors to different end markets, including smart phones.  As mentioned earlier in this post, Apple's iPhone and sales of other smart phones (RIMM, Broadcom, Nokia, etc) are booming.  As a result, there is strong demand for Skyworks' chips.  Zack's has published a recent report saying Skyworks "is well positioned to benefit from the recent trends in the handset market, which are favorable for increasing the dollar content of rf components."  Skyworks closed at $21.63 today and it has been on a nice, steady incline for the past 5 months.  It pulls back just enough at times to give investors a chance to get it in.  The stochastics look a little overbought right now, but this stock definitely warrants a spot on your watch list.  I'd like to see this pull back to the $20 range and start a position from there. 

As always, stay cautious.  Happy Trading!

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.

Daily Stock Pick of the Day - Fri., Oct 15, 2010

Stocks pulled back today following a lukewarm response to the government bond auction, concerns about the upcoming jobs report and continued anxiety over foreclosure practices at banks. The Dow fell more than 60 points at one point today and climbed back off the low to close only 1 point down at 11,094. The S&P 500 and the Nasdaq also fell, but only slightly.  The S&P closed down 4 points at 1,173 and the Nasdaq closed down 5 points at 2,435.  The CBOE Volatility Index, rose 4% today, near 20 at 19.88. Remember, the VIX has been trading below 20 all week, the lowest level for the index since April.

The dollar fell to a new low against a basket of currencies.  Gold rallied to record highs, actually trading above $1,380 an ounce. Other global commodities and commodity-related stocks continue to rise (think copper, palladium and silver).

Today's stock pick is Longtop Financial (LFT).  They're a Chinese firm that develops account management, transaction processing, and enterprise software for financial institutions.  The stocks in the financial sector are showing improving signs of life right now.  In addition, this stock has been under heavy accumulation recently.  On Wednesday, more than 1 million shares traded hands (average daily volume is normally around 440,000 shares).  I think a good entry point here is around the $39 range.  It will probably pull back to this range after yesterday's surge.  My first target is $42-$43 and if it can consolidate in the range, my next target would be about $45. 

Resilient is the word that comes to mind when thinking about this market. I wouldn't say the bulls are are on a stampede, but they're sure not giving up much ground these days. There seems to be plenty to worry about -- worries about European defaults, currency wars and the foreclosure debacle -- this should be enough to dampen investor spirits. Instead, this market is hanging around some new highs. I can't help but think that this market is somewhat overheated. I'm waiting for a brief, but orderly pullback so I can commit some money for the next few months. I definitely believe that we will see a traditional "year-end" rally, but the strength of that rally can only be strong if we let some of the "froth" in this market dissipate a bit.


Stay cautious - Friday is expiration day and could bring additional volatility.  Take some time and check out Wall Street Survivor below.  It's fun and free - what's better than that?

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.

Stocks closed significantly higher at the close of today's trading session.  The dollar slumped, gold rose, and some better-than-expected earnings reports gave investors and traders alike a boost of confidence in the economy's health.   The Dow rose 75 points, or 0.7%, to close at 11,096, a new five-month high! The Dow did rise as much as134 points earlier today.  The S&P 500 rose 8 points, or 0.7%, to close at 1,178, while the Nasdaq gained 23 points, or 1%, to close at 2,441.  Both of these indexes reached new five-month highs.  The Volatility Index, actually rose today above 19.

The good mood prevailing in the market was a result of better-than-expected earnings reports from Intel, CSX, and JPMorgan. In addition, many traders and investors carrty the expectation that the Federal Reserve will step in to boost the ailing economy after release of the minutes from the central bank's September meeting.

Intel (INTC) did report strong Q3 results. They saw gains last quarter in emerging markets and big corportations.  Intel closed at $19.24 today.  CSX also reported a better-than-expected earnings due to rising demand for freight (could this be a sign of an economy on the mend?).  They closed up today almost 2.5 points at $59.66. Finally, JP Morgan (JPM) took a hit today even though they had better-than-expected earnings.  They had lower loan losses in their retail and credit card segments.  They closed down .56 at $39.84. 

Today's stock pick is:  Lululemon Athletica (LULU).  They operate about 124 athletic apparel stores in the U.S. and Canada.  They are looking to expand and are planning to open about 15 more stores in 2010-2011.  I was looking at this stock last week but felt that it was too overheated.  It closed at $45.59 today, but I think this stock is headed back to the $43-$44 range.  I think that would make a great entry/accumulation range and then hang on until the stock peaks again and tests the $48 range. 

As always, stay cautious.  I think this rally is getting a "little long in the tooth" so any new purchases deserve much scrutiny.  Check out Wall Street Survivor below -- it's free, fun and you can compete for cash prizes!

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.

Daily Stock Pick of the Day, Wed., Oct 13, 2010

After spending most of the day in negative territory, stocks climbed back to positive territory after the Fed released its minutes from their most recent session which state "some accomodation may be appropriate before long."  Yes, quantitative easing, or "QE2" as it's called, is closer to being a certainty.  The question now is how much of the long-term Treasury debt will they purchase?

The Dow rose 10 points, or 0.1%, to 11,020, to close above 11,000, a five-month high.

The S&P rose 4 points, or 0.4%, to 1,169, while the Nasdaq rose 15 points, or 0.7%, to 2,417. Both indexes reached their highest levels since May 12.  The volatility index fell below 19.

Most of the key S&P 500 sectors rose, led by financials, technology and materials.

In economic news, the Conference Board's Employment Trends Index fell to 97.0 in September from their revised 97.3 in August.  This is considered as a sign that job growth will remain sluggish.

Also, a survey released by the National Federation of Independent Business (small business owners)showed they were slightly more optimistic in September.  However, more small business owners plan to cut jobs than hire new workers -- not a good sign.  The NIFB optimism index edged up 0.2 points to 89.0.

The stock I'm looking at today is Netgear (NTGR).  This is a play in the tech space and I still like the prospects many tech companies offer in terms of earnings growth.  For the forseeable future, companies are going to continue to try and get by with less, and tech companies like Netgear will help them do that.  They design, develop and market networking products for home and small businesses.  It closed today at $27.39 and it looks like it may pull back here, hopefully, on low volume.  The $26-$27 range makes a good accumulation range and if it can clear $28, I think it can break to the $30 range. 

Speaking of technology, third quarter earnings season gets underway today.  Intel (INTC) reports this afternoon and I think it will have some impact on the current trading environment.  Intel is a "bellweather" tech stock and a lot can be gleaned from them about the future of tech spending/upgrades they're expecting from businesses across the country. 

I wrote a few weeks ago about Starbucks (SBUX).  Today, SBUX closed at $27.12, up more than 4% today, after an analyst reported that Starbucks' consumer products business, led mostly by their instant coffee mix Via, will boost their sales growth in the coming year.  I'm expecting SBUX to test it's recent high in the $28 range as a result of today's trading activity.

As always, stay cautious and happy trading!  Check out Wall Street Survivor below and get in on the fun!  No risk! 

Obligatory Disclaimer:  This blog is not authored by a financial advisor or a broker/dealer.  The author(s) of this blog are not registered investment advisers or registered broker/dealers.  The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular  reader’s situation.  Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.  
Trading securities involves high risk and the loss of any funds invested.  Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance.  The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader.  This blog is presented for information purposes only and past results do not guarantee future performance.

Daily Stock Pick of the Day - Tues., Oct 12, 2010

Stocks closed flat today, but the Dow did make it back above 11,000 after dropping late into the day. Volume was light ahead of a big week of earnings announcements.  The Dow rose only 2 points, or 0.02%, to close at 11,008. Friday marked a psychologically important day when the Dow closed above the 11,000-level for the first time since early May.   The S&P 500 fell 0.1points, or 0.01%, to 1,165, while the Nasdaq rose 0.4 points, or 0.02%, to 2,402. The CBOE Volatility Index, also fell about 8%, below 20.

Most of the S&P 500 sectors fell.  Leading decliners included stocks in the telecom, consumer staples and consumer discretionary stocks.  Among the commodities, oil prices fell just below $83 per barrel.  Gold made it's way towards $1,350/oz as the dollar continued its decline against other major currencies.

The stock I'm looking at today is Auxilium Pharmaceuticals (AUXL).  They are a specialty biopharm company that focuses on developing and marketing products to a specialized audience (urologists, endocrinologists, targeted primary-care physicians to name a few).  I like this stock because the chart doesn't look overheated.  I think it is sitting at a natural resistance point here at $25.95, but this is right on the 50-day moving average.  Even if we get a small pullback here on low volume, I'd like to see it bounce off the 50-day and return to this range -- and then I think it would make a good entry point.  The MACD and the Stochastics look like this pullback might just occur.  I'm going to keep this on my radar this week.  If it can clear $26, I think it has room to run to the $28 range.

Will the Dow be able to push past 11,000 and into it's next range of resistance at 11,250?  No one has a crystal ball, but I do believe that the upcoming earnings season will be a crucial factor in determining the future drive for stocks to climb higher.  Meeting expectations will simply not be enough -- many companies will have to exceed expectations to give traders and investors alike a reason to park their money in equities. A lot of talk is going on in regards to the possibility of further "quantitative easing" by the Fed.  This is especially important given last Friday's job numbers, but I'm thinking that this expectation is already "baked in" to the market's mentality at this time.  I'm not sure that confirmation by the Fed will spark much in the move upward. 

As always, stay cautious.  In the meantime, have some fun for free at Wall Street Survivor below.  Enjoy!

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.

Daily Stock Pick of the Day - Mon., Oct 11, 2010

In a surprising move, stocks climbed above the 11,000 mark on Friday as traders felt the weak jobs report would be enough to get the Federal Reserve to step up it's borrowing efforts when it meets in early November.  The Dow was up 60 points,  .5% and closed above the psychologically significant 11,000-level for the first time since May flash crash (11,006). To date, the highest the Dow closed was on April 26, at 11,205. The S&P 500 and the Nasdaq were also higher. The S&P 500 added 7 points and closed at 1,165.  The Nasdaq added gained 18 points and closed at 2,401.  The Volatility Index fell lower, at 20.  Gold rose today to $1,345 while the dollar fell against the yen and the euro.

In economic news, the non-farm payrolls report came on Friday morning.  The nation's private employers added 64,000 workers last month.  Economists were expecting and addition of 75,000.  Bottom line:  95,000 jobs were cut and the unemployment rate held steady at 9.6% in September. Economists polled by Thomson Reuters were expecting it to rise to 9.7%.

The belief among the traders on the floor of the exchanges is that a weak jobs report increases the possibility the Fed is going to pump more money into the financial system to help spark some economic growth (a.k.a "quantitative easing").

The stock I'm looking at today is Logitech (LOGI).  This is purely a technical play and the chart looks good for continued price lifting.  The 50-day moving average has just slightly surpassed, or crossed over, the 200-day moving average as of Friday's close.  This is most often a bullish sign for stocks.  After some further consolidation here ($17.60), I think this stock can lift into the $20-$22 range. 

As always, stay cautious.  There are still plenty of reasons to not "bet the farm".  All one has to do is look at the recent foreclosure debacle with the banks and you'd know that the housing market still has a long way to go before it can recover.  Also, keep in mind that the upcoming earnings season will also be a factor in how far stocks will climb.  Couple these events with the upcoming election and I think it's possible we'll see the return of some volatility in the markets.  Interesting times we live in?  For sure!

Take some time and have some fun -- Check out Wall Street Survivor below.  It's free, fun and best of all, you can build your fantasy portfolio and compete for cash!  Take a look!

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.

Daily Stock Pick of the Day - Fri., Oct 8, 2010

Stocks closed the day in mixed territory as investors waited for Friday's monthly jobs data and third-quarter earnings reports.


The Dow fell 19 points, in light volume, or 0.2%, to 10,948. The blue-chip index briefly rose to 10,998 --  not quite hitting the psychologically important 11,000 level. Keep in mind, the highest close for the blue-chip index this year was 11,205, on April 26.

The S&P 500 fell almost 2 points, or 0.2%, to 1,158, while the Nasdaq rose 3 points, or 0.1%, to 2,383. The CBOE Volatility Index (commonly referred to the fear index) rose above 21.  Stocks in the telecom, materials and consumer staples sectors fell, while consumer discretionary and technology rose.   The dollar, gained additional ground against the euro.  Meanwhile, gold stocks fell on the rise of the dollar, with CBOE Gold Index falling about 3%.

In economic news, U.S. consumer credit outstanding fell by $3.3 billion in August after falling $4.09 billion in July as credit card debt continued to fall. Also, jobless claims fell by 11,000 to 445,000, for the week ended Oct. 2.  This was reported to be the lowest level in three months.  It's also below the that critical level of 450,000, which is better than the poll released by Breifing.com, which projected first-time claims for jobless benefits would fall to 450,000 new claims.  The big report comes out Friday with the release of nonfarm payrolls news by the U.S. Labor Department.  Gallup is projecting a sharp increase in unemployment for September.  They actually have an estimate that puts the unemployement rate of 10.1% without the seasonal adjustment.

Today's stock pick of the day is Zion Bancorporation (ZION).  They are a financial holding company, operating eight commercial banks with almost 500 domestic branches in the U.S.  I like their chart formation right now.  I think it's at a good spot right now to accumulate shares ($21-$22 range) and with potential to step up to the $24-$25 range. I also like Citigroup (C) in this space.  There looks to be some institutional buying in the past several sessions.  A good price to accumulate shares would be around the low $4 range with a first target to almost $5. 

Stay cautious and happy trading!  Take some time this weekend to check out Wall Street Survivor!  It's free to sign up and play.  Compete for cash prizes every week and month -- you can even set up a contest.  Check it out below:

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.

Daily Stock Pick of the Day - Thurs., Oct 7, 2010

A day after stocks rose from the depths of the prior days lows, stocks closed mixed today.  The Dow rose  23 points, .21%, to close at 10,967.  The S&P 500 closed almost even 1,159.  The tech-heavy Nasdaq closed down 19 points, .07% and closed at 2,380.

Stocks in the news today included gold and materials stocks.  The gold ETF (GLD) closed toward it's highest level at $131.45.  Copper also hit new highs today in light of a weaker US dollar.  Material names like Freeport McMoRan (FCX) and US Steel (X) each tacked on almost 2% in fast trade today. 

What was interesting to me was word that Constellation Brands (STX) tacked on 4% today after they reported a higher than expected quarterly profit.  Constellation Brands is a wine company with a stake in all major markets including the US, Canada, UK, Australia, and New Zealand.  They also own a number of premium spirits in their portfolio.  It's interesting to me that, while in one of the deepest recessions this country has seen, people still open their wallets for their libations.  Today's action on the chart looks crazy, but it's volume activity shows that it's being accumulated by the big investors.  Still, I think this is one worth watching.  If the stock settles in around the lower $18 range, it would be a good entry point as it will probably test the $19-$20 range again after that.

As alway, stay cautious and happy trading!

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.

Daily Stock Pick of the Day - Tues., Oct 5, 2010

Stocks closed out another losing day today, even though they closed off the lowest lows of the session.  The Dow lost 78 points, .7%, and closed at 10,751.  The S&P 500 lost 9 points, .8% to close at 1,137 and the Nasdaq lost 1.1% and closed at 2,344.  Volume was low across the board today. 

In economic news today, pending home sales rose 4.3% in August.  This is the second monthly increase in pending sales, but it's still down from where it was one year ago.  Factory orders fell more than expected.  They fell .5% in August vs. an increase of .5% in July.  The Commerce Dept. claims that's because of a drop in demand for transportation equipment. 

The dollar also rebounded today and this led to some profit taking in certain sectors (i.e. . materials).  This also impacted energy prices.  Crude fell to approximately $81/bbl and even gold slipped a bit just below $1315/ounce.

There were some interesting stocks in the news today.  Church and Dwight (CHD) shot up just over 3% today.  Who knew soap could be so profitable? Solar stocks took a hit today.  First Solar and LDK Solar each sold off 3%.  For-profit schools also took a hit.  I've been writing about two of these in this space:  DeVry (DV) and ITT Educational (ESI) each sold off a little over 2% in today's trade.  Volume on both were lower than Friday.

Today's stock pick is Perrigo (PRGO).  They supply store-brand goods and over-the-counter and prescription generic drugs to retailers across the country.  They sell everything - think about generic cold remedies, creams, ointments, nasal sprays, shampoos, etc.  They are the nation's top supplier of store brand generic products. There are a few growth drivers working for them right now.  First, the recession is driving all consumers to squeeze the most out of their dollars.  Switching to generic store brand products is one way consumers accomplish this.  People are still getting sick, so there's an increase in the purchases of generic store-brand remedies.  Also, the HMO's and other managed-care health plans continue to shift costs onto their members, so Perrigo is seeing a growth in the amount of generic pharmaceutical products being sold by nationwide retailers like Walgreens and CVS.  Perrigo has pulled back a bit from it's recent high around $67.  It's floated back down to the $64 range and seems like it might consolidate here for a bit.  I think this makes a good entry point and would like to see if it can step it's way back to the $67 range. 

As always, stay cautious and happy trading!  Check out Wall Street Survivor below and invite your friends to play.  It's free!  Have fun!

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.

Daily Stock Pick of the Day - Mon., Oct 4, 2010

Stocks closed out the day slightly higher and only slightly lower week over week.  The Dow closed out the week at 10,289, or -.28% lower than last week.  The S&P 500 closed out at 1,146, or -.21% and the Nasdaq closed out at 2,370, or -.44% lower than last week. 

With September gains on the books, the next logical question is "What's up for October?".  Analysts are looking forward to a spate of earnings reports.  I think in order for this market to move higher, we'll need a solid round of corporate earnings that exceed expectations.  Also, as the mid-term elections draw near, expect to see some volatility return to the market. 

Looking forward, there are a number of economic reports next week that will be interesting.  Monday's reports include pending home sales and factory orders.  On Tuesday, the CEO of Intel will speak.  This will be important because investors look to companies like Intel to shed some light on how companies will be spending their I.T. dollars. 

A few weeks ago, I wrote about ITT Educational Services (ESI).  I like another stock in the same sector -- DeVry (DV).  The charts look very similar.  Both are well under their 200-day moving averages, but have now closed above their 50-day moving averages.  DeVry closed the day and the week with gains.  It's now trading at $49.43 and it definitely has room to move up to $55 range.  It hasn't quite reached overbought territory yet and the last four trading days have seen significant accumulation.

Stay cautious and Happy Trading!

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.