Daily Stock Picks Report Archive

Oil prices dropped again today with lower lows and lower highs yet the oil stocks rebounded along with commodity stocks.  

I am still looking for a rebound in the oil stocks that may last 4-6 weeks.  We might be seeing a bottom starting to develop in the independent oil drillers XTO, ATPG, GDP, COG that we have been following, including the natural gas etf UNG started to move up today with GDP moving the most with a 7.84% gain.  This is going to be a process of bottoming that is not likely to be a straight up rebound.

Looks like BBH, the Biotech Holders ETF is weakening so that may be an indicator some individual biotech stocks will pull back some.  I don’t think this sector is a buy in the short-term.

JNJ and PFE are still moving upward nicely with JNJ moving sharply up now.  JNJ might have a short term pullback but that doesn’t necessarily mean a big correction is due. 

KO is still moving nicely and rising with other food related stocks.

CLHB released earnings that beat earnings estimates but gave a cautious outlook.  The stock dropped over 10 pts at the opening and rebounded all the way back above the previous close within 90 minutes.  This stock probably heads down for a while now.

The ag-chemical stocks (AGU, MON, MOS, POT) are rebounding off a low on Tuesday and may continue up for another day or two.  The next question is whether they will make a lower high followed by lower lows in the coming weeks, which I think is probable they do continue the downward pattern.

Copper manufacturer FCX, Freeport McMoran and industrial metals company rebounded sharply today when copper prices firmed upward today on the commodity market.  This stock could rise for another day or two before resuming a downtrend.

CNX, Consol Energy is moving too at a slower rate than FCX.  This stock could easily get into the low to mid 70s.  As a stock like FCX and CNX rebound after a big fall in previous days, tightening up your trailing stop loss is a good idea.

I’m watching the financial stocks closely to see if they turn over.  It has been a really strong sector since July 16th and many smaller names are making higher highs.  

VISN, VisionChina Media was in a corrective mode and  dropped to a low of $17.75 then rebounded to $23.35 today on the hype that the Olympics in Beijing is going to benefit the company.  This is worth a small short position that may last for a week or two.

Keep your discipline with stop losses and position sizes that are relatively small.  This keeps your account more stable and you actually make money more consistently this way. 

Have a great day.

Mitch King

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