Daily Stock Picks Report Archive

Oil prices dropped again today on Monday, August 11th, to $114.45.  Oil prices moved up slightly at the open probably from the Russia-Georgian battle over the weekend and then resumed to the previous pattern of lower lows.  Oil prices per barrel have gone down 14 out of 20 trading days and from a technical analyst view, this could easily drop to the $103-105 range before having a substantial rebound.

It is still interesting that the major oil stocks (CVX, XOM, COP), did not drop much and the overall AMEX Oil Index went up slightly.

The Dow, NASDAQ Composite and the S & P 500 continued to move up today and this is shaping up to be a decent bull run-late but expected.   Remember that this is probably only be a rebound within a bear market but these can last for months and be quite powerful.  As far as whether a bear trend continues, we won’t have to decide that for a while.  Something that I’ve always observed is that these runs out of a deep bottom as we saw in mid July tend to last longer and go up further than most people expect.

JNJ and PFE are strong.  INTC, CSCO, GE, KO, DIS, HD, HPQ, LOW, MCD, MMM and UTX are just a few of the large cap stocks that are moving up well on the daily charts.

MS, Morgan Stanley is still making a decisive move up.

This rally is getting broader based where more and more stocks are moving upward.  On July 10th, we had only 8% of all stocks above the 40 day moving average and today we have 53.8% above the 40 day MA.  This rise could continue for a few days before a breather would be required.  Do you remember everyone was singing the blues and feeling the pain a few weeks ago? 

The run we are in is the run that I was looking for a month ago ….

"We are deeply oversold (July 9, 2008)"….

"All the signals that I look at are starting to tell me we should turn up in the market the next 6-8 weeks (July 10, 2008)"…..

"….this is not the time to be selling short the market right now (July 14, 2008)."

Many people say that the bottom or a top can’t be called but if it is done properly, the largest percentage profits can be realized by anticipating a bottom or top using technical indicators, watching trading action and gauging investor sentiment.

The three agricultural chemical stocks that support farming, MOS, AGU, POT just got whacked again today.  I have these on a watch list to see if the selling continues and potentially give us a rebound.

There is a bullshort chart pattern developing in AFAM, Almost Family, a home health care provider.  The float is only 6.28 mil shares so this can have a lot of volatility.  The next few days this stock should peak and start heading down.  My strategy for this type of chart is to open a very small short position and continue building a full position over the next few days and just holding for up to 3-4 weeks.  The key is to smart very small position initially and over several days completing a full position size as a stock like this continues to rise.

Keep your discipline with stop losses and position sizes that are relatively small. 

Have a great day.

Mitch King

www.TradeStocksAmerica.com

PS:  Saturday, August 23rd is scheduled 1 day workshop at my house.  Please email me at [email protected].