Paul Krugman-press conference Dec 07th, 2008-8.jpg

Paul Krugman

Sorry analysis of  YOUR Stock Watch List took a lot of time this AM  – so little on economics/politics

Health Care

The Baseline Scenario (MIT economists) agrees with NYT Nobel Prize winner Paul Krugman on Health Care – No Bill is better than a weak one.

Krugman – “In summary, then, it’s time to draw a line in the sand. No reform, coupled with a campaign to name and shame the people responsible, is better than a cosmetic reform that just covers up failure to act.”

KISS & Stocks (Keep It Simple Stupid)

If you don’t understand a term look in up at Investopedia.com dictionary

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

Index Percentage Volume
Dow +0.76% down
NASDQ +1.58%% up
S&P 500 +1.02% down
Russell 2000- +2.24% -

Investors411 record – 5 years of beating benchmark S&P 500 and almost all major US indexes

Technicals, Fundamentals & Analysis

See PositionsStrategy , and Overview for changes made over weekend. (No changes this weekend)

Rally Ho, but in the usual weak volume. The NASDQ did manage to increase its volume but not in any big way. Fundamentally news was not especially good yesterday so there is a bullish sentiment underlying the markets.

We are quickly approaching oversold territory and the higher we get above +60 the more I’d take profits.

Jobs numbers for February come out on Friday

British pound is falling apart.

Why stocks are moving higher - Attempts at serious financial regulations appear to be disintegrating. No health care reform that would lessen cost for Americans and cut profits for insurance companies. Lobbyists dominate both parties in Washington. Dysfunctional federal government means no regulations on stocks. Emerging markets are still growing despite a Chinese housing bubble building.  Obviously low volume indicates that No new investors are coming back into the markets. Many bubble’s building, the question is when they bursts.

Significant Indexes

  • McClellan Index rose to +53.10 up a whopping  +21.37 points yesterday We are just below +60 Oversold territory. Time to seriously consider selling into any rallies. Especially one like we had yesterday.

Positions

The  Positions Section = latest buys and sells – (Revised positions last weekend) - These are positions I actually own

YOUR Watch List of Stocks

Many Thanks!!! to several of you who keep sending in additional lists of prospective stocks. Cannot possible include all of them. The 4 new stocks were chosen because they were on more than one list.  If you have one or a group of stocks – I’d be happy to consider them.

Since the McClellan Oscillator is close to +60, or overbought – buying right now is far more dangerous than when markets are oversoldIts hard for almost all stocks to go against the tide.  The McClellan and other similar Indexes dipped down last week into mildly overbought territory (@ +25) and this gave many of the stocks on our watch list some room to run higher.  But, since the McC. is near +60 we are running out of rally room.

NB -Last Week’s Comments. black. This week violet

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

  • CAAS Lots of volume behind rally days and had big breakout – hold if you own or buy the dip. Big +10.90% move higher yesterday – volume confirming rally – A buy the dip stock
  • PCLN Now wait for dip. Breakout 5.22% move yesterday in good volume – A buy the dip stock
  • F Flatlining or Forming a base. Breakout 5.71% yesterday in good volume – A buy the dip stock
  • IMAX - hold if you’re a long term investor Has moved up, but volume weak – Sell  into rally if you are short term trader – wait for pullback to buy.
  • GS, Up a bit but volume dropping Not Interested Still weak
  • CSCO, Techs new leader Not Interested Like AAPL moving higherSlower steadier more for longer term investor
  • SHOO, Great long term chart. Needs breakout – Tempting A 4.02% breakout in good volume yesterday – A buy the dip stock
  • ICON, Slow steady move higher with breakout yesterday – A buy the dip Dipped back down and has formed a series of higher lows & higher highsA buy the dip stock
  • VPRT Moved up to breakout level and pulled back yesterday – A buy the dip Up +2.49% yesterday in what could be a breakoutA buy the dip stock
  • DGIT Thinly traded but had breakout in big volume and is now dipping – A buy the dip Classic breakout and pullbackup @ 5% in last 2 days - wait for next dip
  • CTCT Broke out and is in pullback - A little weaker than other choices, but buy the dip Nothing flashy, but building on higher highs and higher lowsBuy the dip
  • VCI Major breakout, then rallied more and yesterday big drop – Too volatile for me – Dipped and has made up most of that loss, but in weak volume Tempting, but risky.

YOUR New choices (These were on several different lists) Thanks again for sending in your choices

  • CREEOwned this chip company in the past and on a great long term run. Too overextended to buy now - A buy the Dip stock
  • SNDKA tech flash storage company that had a 11.94% breakout yesterday. Overextended now but Buy the Dip stock
  • VSHMost sent in stock. On another breakout,but in weak volume and overextended -  Too risky
  • HMINUp 4.02% yesterday in breakout, but weak volume. Too Risky

What most of you have chosen are technically high relative strength stocks – stocks that are HOT. Lots of these are Great choices. It looks like we should have another day or two before the overbought markets run out of steam. Sell at their highs and jump back in on the dips.

Long Term Outlook = NEUTRAL

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

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