Daily Stock Picks Report Archive

The stock market looks a bit stalled and ready to turn over except we have two factors influencing it the most.  One is the election tomorrow and all reports are that Obama will win.  Even though the stock market tends to price in news events before it actually occurs the stock market might start wondering the consequences of a Democrat controlled White House, Senate and Congress the day after tomorrow.  So there may be some downside to the market from this result as the market totally adjusts to the election results. 

The other factor is that we are coming out of a deeply oversold condition so the market may have some force to move upward.  The net effect is that it seems most likely the market heads down tomorrow and into Wednesday.

My original thought last week was to maintain short positions in some of the ag-chemical stocks through Monday but I closed those positions on Friday morning from a Thursday afternoon short position.  That strategy would have worked well to hold over through today and it looks as though the ag-chemical stocks (MON, MOS, AGU, POT), minerals and mining, coal, oil & gas, and basic material stocks like FCX, PCS, FCL, ACI, MEE, COP, EOG, NBL, APA, XTO, COG, CNX, and WLT appear read to sell down for a couple of days.  This idea of shorting some of these stocks would be for a short position swing trade for a couple of days at the most with small diversified position sizes.

Solar stocks had a big day up with FSLR, ESLR, SOLF, CSIQ and LDK moving up anywhere from 12.6% to as high as 35% today alone.  Watch this sector for potential pullbacks and profit from a small short position in this group in the coming days.  Specifically watch SOLF the closest although that is often hard to find shares to short.

VIX, Volatility Index is going down as the stock market stabilizes and rises in value.  See stock chart on video.  This is still historically very high and this will take a longer process to come down as the market makes its way up.  It won’t go straight down nor will the stock market go straight up-it is a process of working moving in a general direction with some days up and some down but with a net effect of moving upward over the coming couple of months.

Oil prices moved back down today 5.75% to close at $63.91 per barrel, which is retesting the lows set last week.  Continue to watch oil prices because this affects so many stock sectors like coal, mining and minerals, solar stocks, oil and gas.

Take note that the insurance stocks really had 2 big days up Friday and today.  HIG and PRU could be volatile on the upside first, then on the downside.  MET, Met Life looks a little less vulnerable to volatility at the moment.  I am watching these two for potential shorts this next few days.

Let’s review some charts of a few of these stocks quickly as well as the indices.  This is for educational purposes to show teach you how markets tend to act out of a deep bottom like we just had.

List of most profitable and highest quality stocks with percentage change up from the low 4 trading days ago through November 3, 2008 close.

NOTE:  Sorry I am having trouble displaying the information the way I want.  Technical help is coming.  I added a few other stocks to consider but at this point, I’d wait before buying this group again.  You might want to lock in your gains by selling half or more of your long positions with the idea of repurchasing them at lower prices later this week.

Day Traders/Intraday stock ideas:   The pattern worked very nicely again today for waiting for stocks to drop and establish a pattern in that first half an hour to look for a reversal.  MON, Monsanto dropped down to $87.20 and then rebounded to $92.40, then dropped $7 a share to $85.50.  So there are 2 major moves which add up to 5.7% on the first long scalp and a bigger profit potential 7.9% on the short side.  AAPL and X, US Steel did the same with AGU pretty much providing a short sale scalp today.   I am looking for this same pattern to occur again tomorrow morning, (Tuesday) for a good intraday trades.   Use both the 1 minute-1day as well as the 3 min-1 day charts.  Toggle back and forth between the two intraday stock charts on your brokerage firm’s trading platform software.   RIMM did not set up well for me but AAPL, MON, MOS, POT, APA and  many other stocks should work well again for this tomorrow morning for this technique.  Remember to wait for a big drop and if this doesn’t happen, then I tend to shy away from this idea and either look for another stock chart that presents a good setup.  Don’t trade unless the setup is there for you, then use the charts to tell you when the odds are heavily in your favor.

Have a great day and I’ll talk to you tomorrow.

Mitch King

www.TradeStocksAmerica.com

Contents:  stock trading, trading strategies, stock picks, stock market education, stock market investing course and educational stock trading videos.