Daily Stock Picks Report Archive

Volatility continues in the market and is typical to see this at major tops and bottoms.  I think we are building a bottom in the market in general and this is a process that is likely to take several weeks before a firm bottom is in.  It will be a bottom but not sure if this is a rebound within a bear market, which I personally suspect, or a bottom in a bear market, which is not likely.

The market is still oversensitive to news and as we develop an established bull run, markets tend to ignore bad news and that is a clear sign that people are happy.

The financials started to turn over, as I had expected.  The two lead stocks, WFC and BAC started correcting today and that short term down trend should last for 1-2 weeks.  I am long SKF, which means I am short the financial sector.  It would not be surprising to see SKF at $150 in the coming weeks.

Oil moved up down today but still nothing to be concerned about -I doubt we will see a lower low than Tuesday and Wednesday’s low (July 29-30th).  We should still be seeing a technical bounce that will bring oil stocks up the coming weeks.

Independent oil drillers XTO, ATPG, GDP, COG, natural gas etf UNG, and even the big boys CVX and COP are still good holds even though they pulled back as I expected they would.  It looks like we are in a process of building a bottom for a short term rebound.

CLHB continued up, this is still a hold.

ACOR dropped today more than expected but still within the parameters of being a long.  This deserves a little of your money as well.

REPEAT from yesterday:  The ag-chemical stocks (AGU, MON, MOS, POT) moved up nicely the last 3-5 days but I still see this group as lower lows and lower highs and that describes a downtrend.  I see the air being let out of that bubble or at least that is what the pattern looks like.

CEDC and TXT are moving up slowly but steadily on the charts.  These two could run for some time at a slow pace.

Main point tonight:  hold the oil stocks long and small short positions in financials.

TWP is on watch list for possible short if it runs over $19 Friday.

See you tomorrow night.

NOTE:  I have received a few requests for a workshop so if we can get a few people together at my house in West Linn Oregon next Saturday, August 9th for the full day, I have a very comfortable large living room to teach with a LCD projector, sceen and one of my desktop computers.  Bring a laptop if you have one and download the software from the brokerage firm you use; I can help you set that up with charts.  There are chart set-up instructions with all 5 major online brokerage firms in the member’s area or I can email them to you directly as well.  Cost is $399, bring a sack lunch because we live out in the country so driving somewhere to eat is inconvenient.  Email me at [email protected] if you can make it.

Mitch King