Friday, October 1, 2010

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!

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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.

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