Daily Stock Picks Report Archive

Hello…..

I wanted to clarify the term "Weekly Wednesday."  This is a free daily stock pick report that I send out once a week for people who are interested in previewing this daily stock newsletter or in making money in the stock market.  It is the same report as the Tuesday evening stock report.  I am trying to get this emailed to you as early as possible but it takes me anywhere from 4-6 hours to research and analyze what the current market conditions and then communicate it in a way that is understandable.

I do realize I tend to overcomplicate things and get too technical but I will remember as I teach that many of you are stock market beginners.   I realize that many of you are on the east coast so it looks like you’ll be reading this in the mornings.  I would prefer you read it at night so you can think about it before the stock market opens and you won’t feel rushed in the morning.

The financial stocks over-reacted today and are likely going to pull back.  I bought BAC, Bank of America, in my kids’ trust accounts earlier this week and I probably should have sold BAC stock at the close today.  I’ll probably sell tomorrow morning either at the open or after I watch it to see if it runs up more.  Either way, a 22.3% gain in a banking stock in one day is unheard of except for buy-outs.  Headlines on financial websites said, " Historical stock prices….bank’s best day in 16 years."

The most likely scenario for BAC as well as WFC, Wells Fargo, is that it pulls back possibly for a day or two.  It is a very typical reaction to see selling after a big run like this, especially in a badly beaten up stock (especially being a financial stock in this environment).

You probably saw WFC – Wells Fargo  – the stock went up 32.7% today after announcing a profit this last quarter, beating analysts’ expectations for earnings by 3 cents per share and not cutting the dividend.  But it is probable that this stock sees some selling either at some point after it runs up to 29-30 or it could sell at the open.

One day of big rises does not solve the financial industry’s problems.  And even though this was a big day, it doesn’t change all of the stock investor’s sentiments from negative to positive so quickly.  There should still be some nervousness out there.  My best guess is we see a day or two pullback which scares stock traders again, followed by a slower upward trend for a longer period of time but the general trend among all this volatility should still be up for weeks.

I don’t want to try to persuade all of you to become stock traders, but if you have followed this week’s stock picks’ reports I sent you, this is a big percentage profit you have on your hands with today’s action.

The VIX, CBOE VOLATILITY INDEX, reading of 39 is incorrect.  The high today was $28.19 and occurred at the open.

ICE, Intercontinental Exchange, is acting well and still a hold for now.  First target ., price is $105 and my 2nd target is $109-110 a share.  I am looking for this to happen the next 2 or 3 weeks.

EBS,  Emergent BioSolutions, is acting well, slow but still going up.  Holding this.

BMI, Badger Meter Inc., was a disappointment with hardly any gain and has  very low volume.  Shame on me for giving you a stock pick with that low of volume.  It is a terrible trading strategy to work with a stock that has a very low volume of stock shares traded. Take this off your list if you have not bought it long.

GTLS, Chart Industries Inc., is still going up, although I did start watching this stock late in its run, but the stock chart still looks real good.

ESLR, Evergreen Solar, is acting well and the stock chart looks good too.  I am up over 20% on this in the past week.  This stock is a solar stock.

I am watching the housing stocks, CTX, DHI and KBH closely for possible short sale.  This is an aggressive stock trading move but this trade has been working for most of the last 13 months.  (I can hear some of you saying "duh" ).

Short selling stocks to watch for:   KBH would have to go over $19, DHI at $12.50, and CTX over $14.25.  These are not strong short selling recommendations, just potential  stock trading ideas that I am looking at for my own trading.

We won’t get the "perfect storm" very often with stocks as we have had in the financials stocks this past week.  Most ideas are what I call "bread and butter" money makers that are typically 7%-20% in a few days to a few weeks.  Lately, I haven’t felt comfortable with holding stocks – in what I term – "3 week trades", because the stock market volatility has been so high.

I don’t have any new ideas to buy because I am still stuck on the idea of a slight pullback on the stock market the next couple of days.  I’ll have more clarity over the coming weekend what kind of opportunities we may have next week.  If oil rebounds upward, after this big fall it has had the past week, stocks are going to be going down as oil rises.  And oil is likely to have a bounce at some point, even if it is in an overall downtrend.

Have you noticed yet how the stock market has the emotional state similar to a young child?  This past week’s headlines were doom and gloom and today all is right with the world.  You can make very large sums of money by understanding the psychology of investors and how that affects the markets.  I’ll give a long tutorial someday.  Oh wait, I have one in The Wizard Training Course!  (shameless promotion!).

I say again, learn how to read some basic stock charts with the indicators set up as I show on the chart set ups with the 5 major brokerage firms.  I can email them to you individually if you tell me what firm you use and I will get them posted on the home page sometime next week.

See you tomorrow.

Mitch King