The Daily Stock Report April 8, 2009
The several days of selling was stopped today with buyers moving in mostly tech stocks
. It looks like the pullback may be over and we are likely heading up to higher highs. Asian markets are up sharply tonight from 2.3 to 3.7% tonight and this will likely pull the US markets up at the open as well. If we get any more positive or not so negative economic news this week, the market should continue to move up.
The current sentiment is that the market may absorb any bad earnings news to start the season next week. We already have seen some bad news that the stock market has not reacted near as negatively and actually turned out positive.
The short positions in the banking stocks that were re-opened are still going down slightly but could get some upward momentum if any positive news in this sector gets released. We had some very favorable news in the life insurance sector that speculation is that they will be able to access the TARP money (Troubled Asset Recovery Program). That caused a stop in PRU, Prudential. And this type of news in the life insurance sector could cause the banking stocks to really move up as well.
Most stocks in the wish list and on the stock list below had nice reversals today with many of them up as much as 6%. Tomorrow many of these will see higher highs if the US markets follow the Asian markets that are up sharply tonight.
Oil index closed up 3.5% at $50.10. Same pattern of following the indices and likely continues to parallel the market.
REPEAT: Let market pull back before getting too heavy in LONG positions. It could take several weeks before this bottom is well established. Stocks that have been the strongest and pull back the least amount with more of a sideways action are the ones to be watching for long intermediate trades.
Swing Trades: New Ideas: STP, Suntech Power provides electronics for the solar industry. This should be considered as a short swing trade.
ASH, Ashland Chemical is also worth a small short position. Target price to cover is $10.
Day Traders/Intraday stock ideas: Look for drop and pop again and this whole week should be good volatility for intraday trading. Stocks probably will start a period of selling and the pop may be weaker and weaker as the selling continues. Eventually, after days of selling, a big reversal may give the pop more strength. Stay on the long side on the pop but dont buy late in day. Look for good intraday trades in FSLR, ICE, BLK, CME, POT, MON, MOS, AMZN, AAPL, BIDU, USB, WFC, JPM and any high volume, high volatility stocks.
IMPORTANT NOTICE: You are currently paying $59 a month for The Daily Stock Report to be delivered to you via email and full access to all reports and videos in the Members Area at www.TradeStocksAmerica.com. Your fee will never go up as long as you remain a member but you will see that our rates for new members will go up substantially over the coming two months. Be assured that your rates as current subscribers will not change. If you know anyone that is considering subscribing to our service, please let them know to consider subscribing at the current rate.
REPEAT: Many of you have emailed me with questions about not having the $25,000 to do intraday trading. You can have 3 intraday trades in a 5 business day rolling period without having $25,000 in your account. Above $25,000 you can do unlimited intraday trades as long as your account equity is above $25k. You can have swing trades like we have been having the last 2 weeks and make a smaller amount of money, lets say $10,000, to build up with swing trades.
Thoughts: Keep steady, calm, decisive, aggressive. Have no fear and no greed. Keep looking at what to be doing next in a calm manner. Dont focus on the past or beat yourself up what you did or didnt do or what you should have done. Just keep playing the next shot, which in this business your next shot could be just sitting on the sideline.
I am still expecting some sort of substantial rally in the stock market sometime this year mostly driven by the massive stimulus that has already been poured into the system plus the planned stimulus package being proposed now. Longer term though, in a couple years down the road, no doubt the taxpayer is going to have to pay for such the high debt amounts that the US government (and other countries) have taken on. So tax rates probably will rise in coming years, interest rates will very likely have to rise as inflation surfaces and likely the bear market resumes sometime down the road. But we dont have to be stuck in a miserable cycle like most investors. With the techniques and approach to the market, we will still thrive.
If you have been uncomfortable shorting stocks, which most people are, try to learn this technique, it will be a useful tool in the coming years.
Thoughts: Best odds only, be decisive, aggressive, mentally flexible, stay in position size, dont overtrade and wait a little longer to buy and wait a little longer to sell. You will find that will make you more money on your trades. Trade what you see, not what you hope for. Intermediate and swing trades are really important to have trailing stop losses set.
Dont trade unless the setup is there for you, then use the charts to tell you when the odds are heavily in your favor. Dont force anything to work for you, let the setups develop and then take advantage of that. Be patient. Stay in position sizes without letting any intraday trade represent no more than 10-15% of your total account value. As you build your account, your position size percentage should get smaller and smaller to lower your risk.
Have a great day and Ill talk to you this tomorrow.
Mitch King
www.TradeStocksAmerica.com
by: Mitch King
The Daily Stock Report April 12, 2009 The Daily Stock Report April 13, 2009 The Daily Stock Report April 14, 2009 The Daily Stock Report April 15, 2009 Forex Trading: A Brief Introduction Everything You Need To Know About Forex Day Trading Finding The Best Forex Day Trading System Currency Trading For Dummies - How Any Dummy Can Get Started Trading How To Trade Currency - Tips To Jump Start Your Trading How To Find The Best Free Forex Demo Account Top Forex Trading Tips Technical Analysis Training - Looking At The Overview What You Get From Currency Trading Training