Daily Stock Picks Newsletter from September 24th, 2008
We are still waiting on the politicians to approve, disapprove or modify The Treasury and the Federal Reserve’s $700 billion financial bailout proposal. The stock market is still nervous and will most certainly move the market upward on approval.
The requested deadline is this Friday so we should have some more volatility tomorrow with a bias toward the upside.
The VIX, Volatility Index, was a little higher today than yesterday and peaked out at 36.71 before turning over a little like a bullshort chart. The VIX chart is going to settle down like a correcting bullshort chart and the stock market will go sharply up as this VIX chart drops. There is still time to be buying long tomorrow and I think tomorrow will be a good day to plant yourself long. We should be seeing the stock market head up for a while from here tomorrow, possibly for a couple months as a general direction.
I am still long AAPL, Apple Computer but sold FCX, Freeport McMoran and MOS, Mosaic because they acted poorly. I’ll probably add to the AAPL position tomorrow.
GE, General Electric, is another stock I am interested in on the long side although I missed the bottom today when it went below $24. It doesn’t have to get that low tomorrow to be a good intermediate long position. GE trades very closely parallel to the Dow.
WMT, WalMart looks like a good long position too although this isn’t a short term position.
GOLD, Rangold Resources is still a good short but watch spot gold prices because that is what directly affects the stock price of gold stocks.
SYUT, Synutra International, peaked today and started turning over today after hitting $24.93 and closing at $21.22 for already a 20% profit potential today alone. This should drop another day or two in which any profit on a drop from here is good. At first glance $18.50 seems to be a good target to cover.
The government rescue package by the government should be the catalyst to move the stock market off these lows and start trending up. It would not be surprising to see a rate cut shortly from the Federal Reserve as an emergency rate cut to help grease the economic skids.
Have a great day and keep your stock position sizes small relative to the account size! Use trailing stops, wider than normal because we have so much volatility.
Mitch King
www.TradeStocksAmerica.com
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