Daily Stock Picks Report Archive

The financials are likely to drop further over the coming week or so and any short position with financials should be held with a very short time frame in mind-a matter of days.  I am short BAC and long SKF, Proshares UltraShort Financials ETF the last couple of days.  My first target on SKF is $148-150.  I am looking for BAC to drop to 27 on an initial target with a possible lower target if the market gets panicky again and tries to convince investors the recent lows will be re-tested although I don’t think it will approach the July 15th low.

I am expecting oil to rise again starting this week.  CVX, Chevron and BP, British Petroleum, would be the most likely to rise with the price of oil.  The natural gas ETF that looks very interesting as a long purchase and likely to rise with oil is UNG, US  Natural Gas Fund.  This ETF could easily see a 20% in the coming weeks

To repeat in previous reports is that airline stocks will go down when oil moves up as I expect.  There isn’t a lot of profit as a short sale on the airline stocks now that the stocks have dropped anywhere from 8-35% on ALK, LUV, DAL and UAUA  the last 2 trading sessions

We could see a little more selling of oil prices but I am thinking the market is over-reacting again, as usual.  I am expecting a technical bounce in oil prices that will bring oil stocks up for only a matter of a couple of weeks and oil does not have to exceed the $146.20 per barrel we saw on July 15th in order for us to profit by going long these oil and gas stocks.  So to play it on the safe side, if you buy these oil stocks long, you are looking for 8-10% rises in the stock as oil moves up. 

HK, Petrohawk Energy

GDP, Goodrich Petrol

ATPG, ATP Oil and Gas

COG, Cabot Oil and Gas

NXY, Nexen

There are many more gas and oil stocks that look interesting, these are just a few that the charts caught my attention as long candidates.

Repeated Comment from July 24th report is that the ag-chemical companies look to bell be in a corrective process (AGU, POT, MON, MOS) until they prove themselves otherwise.  It seems doubtful that they are going to make new highs but it is too early to make any conclusions. 

The strong action upward from July 16th to 23rd is often the first important indication that we might be establishing an intermediate term (weeks to several months) of strong upward action.  We could easily have a strong rebound within a bear market or downward trend in the overall market.

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I hope you have been making money this past couple of weeks-it has been great trading.  See you this weekend.

Mitch King