subject: Stock Picks -pt2 [print this page] Daily Stock Report for Wednesday Morning, March 24, 2010 pt2
Summary Opinion
All of the major indexes have surprised the January highs and has resumed its bull market run that started over a year ago on March 10, 2009. The current assumption is the bull run should continue to make higher highs after any pullbacks.
Calendar (All Eastern times)
Tuesday, 1000am, Existing Home Sales, 5.0M
Tuesday, 1000am, FHFA Home Price Index, -0.9%
Wednesday, 830am, Durable Orders, 0.5%
Wednesday, 1000am, New Home Sales, 315K
Wednesday, 1030am, Crude Oil Inventories, 1.01M
Thursday, 830am, Continuing Claims, 4,560K
Thursday, 830am Initial Claims, 450K
Thursday 830am Continuing Claims, 4500K
Friday, 8300am, GDP, 5.9%
Friday, 955am, Univ. of Michigan Consumer Sentiment Index, 73.0
Follow-up notes:
CLFD, Clearfield is moving up nicely Tuesday with a 7.6% gain. This is just a 1-2 day hold with Wednesday a likely exit point near $3.15-$3.20.
TM, Toyota Motors moved up nicely today stepladdering up higher by 2.6%. Momentum is building on this stock and it is very unlikely that any similar news will bring this stock down much. We are having the last laugh on the politicians that tried to crush a foreign car company. By the way, GMs car sales are reportedly benefiting from the negative press on Toyota. Full disclosure: Mitch King owns 4 Toyota automobiles but that has nothing to do with this stock pick, lol! Toyota, (TM) was the classic example of buying a great companys stock at a steep discount when the public is running around saying the sky is falling. Dont ever forget this Mitch King quote: You buy a great companys stock when there is absolute chaos and panic at its peak and you sell when everyone is congratulating themselves about how smart they.
Focus chart: (Worden Stockfinder chart)
SOMX, Somaxon Pharmaceuticals. Todays rebound of 9.7% is typical of a bullshort. If this doesnt exceed that first high made last Friday when it hit $10.60 unfolds it should be ok to short. IF it gets hot tomorrow Wednesday and exceeds $10 on high volume and strong trading action, dont short it yet. If this moves up on lower volume and falls apart below $10 then it could be consider as a decent bullshort and it could easily fall apart to below $8 in the coming 3-5 days. Might be worth shorting a very small short position near the opening if it has a little spike, which is likely. These comments are based on what usually happens to most bullshorts. Target price should be around $7.
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