Daily Stock Picks Report Archive

The stock market sold off today with the Dow 30 correcting -276 points or 3.2% and rebounded up in the last 2 hours to close up +172 or 2.0%.  The trading action looked vicious today even though the market was not down near as much as other days.  When a stock would try to rebound up slightly it would be met with big sell orders and the stock would make lower lows.  It is looking like mutual funds are still selling to raise cash for redemptions and unfortunately, "selling begets more selling."

Former Federal Reserve Chairman Alan Greenspan testified to Congress today and his comment that he "was shocked in disbelief" about what has happened to the investment banking, banking and insurance sector really rattled the stock market.  To hear the former chief architect of the longest bull market say that gave no confidence to the market and proceeded to go to the lows of the session followed by a nervous rebound upward, mostly in the last 30 minutes.

The Asian markets have also sold off tonight with Japan’s Nikkei down -7.1% and Hong Kong down over 4%.   This is a vicious cycle we are in that is a very dangerous market.  The stock market looks, acts and feels very fragile.   Normal stock market forecasting techniques can be useless with this type of economic event having so much pressure and fear from many sources.  Is the market adjusting to the most popular belief that we are heading for a deep and prolonged recession?  Is the market also adjusting to the polls that indicate Barrack Obama may be the next president and is his talking to Joe Plumber about "spreading the wealth" from high income families and businesses to the remaining population rattling the country?

Commentators on CNBC have been saying that there is nobody working today who has seen this type of stock market, the last being in the early 1930’s.  I am still holding onto the idea that we start to move upward but it could easily fall hard to a new leg down as well.

The large oil stocks like COP, CVX, BP and XOM moved higher on anticipation that the emergency meeting with the oil cartel will result in reduced output in an attempt to drive oil prices higher.  The smaller independent oil and gas stocks did not participate.

Light Sweet Crude Oil prices moved up $1.09 to 67.84 for a 1.6% gain per barrel and yet the large oil companies moved up from 4 to 9% today.

The stock chart on BLK is getting more interesting today as it moved lower.  This stock pick is based on the idea that we see a technical rebound.  The further and faster this stock continues downward, the higher the odds it rebounds unless there is some distress of that company.

I think we have an excellent opportunity to make substantial profits in stocks over the next 3-6 months.  Stock prices may go down more from here before they rebound but the odds are overwhelmingly in our favor to start accumulating stocks and holding for those months.  For those of you who have learned to proficiently trade stocks intraday can profit in this volatile market but the odds are the best to start accumulating stocks for a longer time period.

I’ll be continuing to look for the best stocks these next few days.

Have a great day and I’ll talk to you tomorrow.

Mitch King

www.TradeStocksAmerica.com

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