Real Time Stock Trading Picks -pt1

Daily Stock Report for Monday Morning, May 3, 2010 pt1

Everything was looking good through Thursdays close until the news that the Goldman Sachs case was turning into a criminal case. The futures last night turned from positive to negative immediately and Goldmans stock, GS, turned negative in a very late extended session (730pm ET) and very early this morning (430am ET). This morning in very early premarket the stock was down only $4-5 to around $156 but got ugly toward the end of day and hit $143.30 closing near the low of the day.

The Dow30 ended down 1.4% or 158 points, the Nasdaq Composite ended down over 2%, the S&P 500 down 1.67% and the Russell 2000 was down a whopping 2.87% Friday! All the internal stats of the market were ugly

The way the market was acting on Tuesday afternoon, Wednesday and Thursday, stocks looked poised to move to higher highs but this latest news with Goldman could put a kink in that plan.

As discussed many times in this newsletter, there usually is a catalyst to move a market in the reverse direction, in this case down. With the conditions ripe and stocks being easier to fall than to rise, a 3 month steady uptrend sets the stage for previously content investors to now suddenly becoming fearful.

It is just an excuse for people to sell and since everyone else is selling, why not capture the profits made so far? And the selling causes more selling. So far, we have been on steady diet of the buy on the dip pattern for over a year since March 10th 2009 but this could be a top of some sort that may last for weeks, similar to the mid January 2010 correction and a wild guess would be to around 10,650 on the Dow30 and 1125 on the S&P 500.

This is where it gets tricky because the momentum on the upside has been strong and even though this Goldman criminal case has not following the pattern of a serious criminal case (no grand jury indictments, no special prosecutor appointed, no handcuffing) but only probing so far. It still could be the influence of the Obama Administration creating the image they need to get their financial reform package but I lean toward the idea that no matter the reason, stocks are more likely to sell off this next few days with fear permeating the atmosphere as the rats head for the doors.

Stocks are likely going to be giving us short term swing trading (LONG) opportunities for just 1-3 days with intraday scalping being an outstanding scalping environment. Be nimble and mentally flexible.

Scalp of the Day: (all eastern times)

CAM, Cameron, was one of many excellent scalps. This one had a $4 rebound after a drop for an 11% profit potential on the long side.

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 of actual launch date and info.

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

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