Stock Market Education Pt1

Daily Stock Report for Monday Morning, November 23

, 2009 pt1

The slight correction in stocks continued with a 3rd consecutive down day Friday after the US Dollar increased in price and some key missed earnings reports.

The stock indices still made a gain during the week by approximately 0.5% although the last three days appear to be the start of what we expect to be a slight and short pullback that could last another 7-10 days.

My suggestion for you to consider is to be more selective in smaller long positions, some short positions for more aggressive investors, and more cash on the sidelines until we get a clear bottom in which to buy more long positions.

Economic data worth noting this week is the existing home sales on Monday, new home sales on Wednesday which are expected to be the highest since July 2007. This may not be important data now that earnings of DHI, D.R. Horton posted losses twice as much as expected.

On Tuesday, the Gross Domestic Product (GDP) could be data that the market reacts to with the lowering of expectations from 3.5% to 2.9%. Also on Tuesday are the notes of the Federal Open Market Committee (FOMC) meeting notes that may give some clue to the intentions of the Federal Reserve. Federal Reserve Chairman Bernanke has made it clear that they plan to keep interest rates low for an extended period of time because of high unemployment and low inflation.

The week of Thanksgiving usually has a bullish bias to the market as many traders are taking the holiday week off. The day after Thanksgiving, known as Black Friday will give us some indication of retail sales and an indication of what the Holiday sales will be. This year in particular, the market analysts will be using this as an important indication of the state of the consumer, which is the biggest driver of the market. NOTE: This Friday is half day trading and closes at 1pm Eastern time (ET).

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. 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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