Daily Stock Picks Newsletter from October 27th, 2008
We should see a decision out of the Federal Open Market Committee (FOMC) on Wednesday which meets Tuesday and Wednesday. They will decide if any rate reductions in the Fed funds or discount rate will be necessary. The market has priced in at least a .25% drop and about a 35% chance of a 0.50% reduction. Stock trading volume and volatility will likely be lower tomorrow and Wednesday morning until any decision is announced.
Asian markets are down again tonight but not as dramatic as last night.
Light Sweet Crude Oil prices dropped 1.4% today to close at $63.23 per barrel, down $0.92.
We are going go through on VIDEO some of the indicators I look at when looking for oversold conditions that we have now. The VIX, VXN, T2108-Stocks above 40 day ma, T2100-Advance Decline Line, as well as some of the short ETFs like SKF, SRS, SDK and others.
Add to the list of most profitable highest quality stocks:
V, Visa International
MA, Mastercard
KO, Coca-cola
SLB, Schlumberger
DD, Dupont
DOW, Dow Chemical
BP, British Petroleum
COP, ConocoPhillips
CVX, Chevron
WMT, Wal-Mart Stores
PG, Procter & Gamble
IBM, IBM
BRKB, Berkshire Hathaway Class B shares, lower priced than Class A shares.
GSK, GlaxoSmithKline (major drug manufacturer)
BAC, Bank of America
PEP, Pepsi-cola
GOOG, Google
AAPL, Apple Computer
APA, Apache Energy
For the day traders, let the market open and look for a move downward in the first hour or two and look for a rebound using the 3 minute 1 day charts. I’ve been working with RIMM, AAPL, XTO, MON, APA, MOS, PRU, CME, CNQ, as intraday trades because the volatility has been so high, the trading volume is high and the spread is small between the bid and ask stock price.
Keep your position sizes small and no leverage.
Have a great day and I’ll talk to you tomorrow.
Mitch King
www.TradeStocksAmerica.com
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Mitch King is the founder of TradeStocksAmerica.com. All material presented herein is believed to be reliable but we cannot attest to its accuracy. All material represents the opinions of Mitch King. Investment recommendations may change without notice and readers are urged to check with their investment counselors before making any investment decisions. Opinions expressed in these reports may change without prior notice. Mitch King and/or the staff at TradeStocksAmerica.com may or may not have investments in any stocks cited above before or after this newsletter is prepared. Opinions expressed in these reports may change without prior notice.
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