Buying Stocks -pt1

Daily Stock Report for Thursday Morning, March 25

, 2010 pt1

US stocks start selling at the open after Fitch downgraded Portugals credit rating one notch probably brought on the Oh no, here we go again response from most investors. Talking heads came on CNBC are saying that the Portugal situation isnt near as bad as Greece. But like I have been saying over the last few weeks there is going to be a little cautiousness wondering when the next shoe will drop.

Spain, Ireland and Iceland are also possible problem countries but the market is going to price in that possibility. There is still a lack of clarity on how Europe will support Greece and now Portugal although the odds are the market should still continue to be bullish and this test for the market probably wont amount to much.

The Dow30 was down 0.5%, Nasdaq Composite down 0.68% and S&P 500 down 0.55% after just hitting 18 month highs. The S&P 500 is still up about 6 percent year to date.

The economic data released today gave mixed signals with new home sales dropping to an unexpected record low and yet manufacturing goods demand rose for a 3rd straight month. Buying homes are more difficult to purchase plus the manufactured goods are lower priced items.

New home sales fell to lowest level since last July and the housing market could be heading for that anticipated double dip in prices and sales. The drop was fourth consecutive monthly decline and worst stats since 1963 in new home sales. This could have been influenced by the severe weather in the northeast USA.

Consider new long positions when market stops correcting.

Scalp of the Day:

BYD, Boyd Gaming was a buyout rumor today and gave a potential short profit potential of 4.7%. This is described in

*These are the kind of trade ideas we will be giving in the Trading Room, which we are in beta testing right now. Put your email address and name on website page to be notified.

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. Use the stock table above as a model portfolio of ideas that look attractive at the time of the writing. Comments can be hypothetical in nature. Opinions expressed in these reports may change without prior notice. Disclaimer - Stock investing or stock trading has large potential rewards, but also large potential risk. There is risk of loss as well as the opportunity for gain when buying or selling stocks, bonds, option contracts or engaging in any strategy listed in the Daily Stock Report, The Wizard Training Course, The Trading Room and our seminar or workshops. You must be aware of the risks and be willing to accept the risks when investing or trading in any financial markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell stocks. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

by: Mitch King

POST COMMENT

New Features and Enhancements in SharePoint 2010 - Part III He Feels Nothing for Me Anymore. Should I Just Accept It And Let Him Go? Aggregate crusher and crushing plant Speak Up and Step Out of Your Comfort Zone! The Ghronograph and the Georgef Graham A number of mutual cancers Stock Newsletter -pt2 What Causes Tooth Loss And How To Prevent It What A Fuel Flowmeter Is And What It Is Used For How to Pick Out The Best Mask for You and Your Date Man Boobs - The Cause and the Cure Tibet Arts: Your One-Stop Shop for Tibetan and Himalayan Artifacts Haemorrhoids - a varicose and often inflamed condition