DAILY STOCK NEWSLETTER
Written 05/14/08 for 05/15/08
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Todays Top Stock Charts
http://www.profittrading.com
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LEARN TO TRADE - LIFETIME TRADING LESSONS
The first issue comes out June 1
http://www.trendtradingsystem.com
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Eugene's Commentary
Emergency Room Dilemma: 65 malpractice lawyers on the way to a conference gets rear-ended by a semi - Today's "Close to Home" comic strip
China is smoking hot again. The stock market looked good today as reports circulated that inflation is not as bad as they thought. These types of propaganda are shoveled from a big pile of horse manure. $4.00 a gallon gas may not impact the rich, but it takes a huge chunk out of the average working man's pocket. The report is just hype; the economy is still in trouble and inflation is out of control.
The Chinese Mini-Car company had a good gain at one point - but it is thin and likely a manipulated stock. Invest in solid companies only. The best of Breed!
http://finance.yahoo.com/q?s=KNDI
Speaking of which, the solar stocks continued to do well with FSLR smashing through $300! But the best of breed may be $21 SOL! Biofuel company, GU was unaffected by the Earthquake and was up a few bucks though they will be shifting operations to another plant.
http://finance.yahoo.com/q/bc?s=JASO&t=6m
http://finance.yahoo.com/q/bc?s=FSLR&t=1y
http://finance.yahoo.com/q?s=SOLF
http://finance.yahoo.com/q/bc?s=GU
http://finance.yahoo.com/q/cq?d=v1&s=ga+sol+sohu+gfa+gu+mvl
http://finance.yahoo.com/q/cq?d=v1&s=gu+visn
Chinese rolled steel company, CPSL, making a nice gain today.
http://finance.yahoo.com/q?s=CPSL
But I am just looking. Actually, CRDN is probably my fave that is not foreign, energy related or a commodity. Body armor is always good as long as there is tension in the Middle East (It has been going on for some 2000 years - so it is bound to end soon, right?). MVL, like GME is a cheap escape for people who need a vacation from reality. And Chinese stox are what they are - and they are hot. Look how JASO bounced back! I think VISN and VIT can be good ones too.
If I owned anything besides MTSX, I would sell in May and be gay!
http://finance.yahoo.com/q/bc?s=CRDN&t=1y
Mr. Market! This is NOT how to sell a newsletter, but at least he leaves nothing secret. See Mr. Market and his big hairy sweater. Probably combing his back when he should be researching stocks, he is entertaining, nonetheless. Look at his buy and hold record. That is why we do not buy and hold.
Jim will be putting out the monthly investment news magazine soon and you will see a photo of what affect good, honest investing has on a man and his family. - Gene
http://www.mrmarketishuge.com/huge/
"That's it and that's all" - EHC
Here's a picture of Eugene and his family
http://www.trendtradingsystem.com
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Commentary
Stocks were pulling back a bit after pushing to new session highs late Wednesday.
At 2:44 p.m. EDT, the Nasdaq was up 1.2% as chip stocks continued to run. The Philadelphia semiconductor index charged up 2.7%. The Dow and S&P 500 gained 1.1% each. Meanwhile, the NYSE composite rose 0.9%.
Volume was still tracking mixed, with NYSE turnover lower and the Nasdaq's higher.
Although the Nasdaq was leading, breadth was better on the NYSE, where advancers led decliners by 11-to-5. On the Nasdaq, winners led losers by 8-to-5.
Western Digital (WDC) surged 2.87, or 9%, to 34.12 in active trading. It's nearing a 34.90 buy point from a cup pattern. The hard drive maker's base is lacking in accumulation, but volume on the session is already double its 50-day average. Harris (HRS) jumped 1 to 59.88 in heavy volume. Late Tuesday, the communications and IT firm won a contract from the U.S. Navy worth up to $350 million.
Ctrip.com International (CTRP) gained 0.84 to 63.18 ahead of its Q1 results after the close. Earnings at the Chinese provider of travel services is seen climbing 38% to 18 cents a share. Sales are slated to rise 55% to $46.5 million.
On the downside, Electronic Arts (ERTS) dropped 1.77 to 52.80 in busy trading. Late Tuesday, the video game maker delivered a 50% rise in Q1 profit and a 84% jump in sales. Both were above views. But the company guided full-year earnings below consensus estimates.
Cash America International (CSH) lost 1.47 to 37.98 and sliced its 50-day moving average. The operator of pawnshops and payday loan centers has been under pressure since a April 28 downgrade. It's Accumulation/Distribution Rating has fallen to C from A late last month.
The major stock indexes pulled back slightly midday Wednesday after running higher for most of the session.
At 12:43 p.m. EDT, the Nasdaq was up 0.9%, or just off session highs of 1.1%. The Philadelphia semiconductor index jumped 2.1%, but eased after nearly reaching its 200-day moving average. Meanwhile, the NYSE composite and S&P 500 gained 0.8% each. And the Dow climbed 0.9%.
Volume turned mixed with the NYSE tracking lower and the Nasdaq higher.
Yingli Green Energy (YGE) rallied 2.83, or 12%, to 27.17 ahead of its Q1 report Thursday. The maker of photovoltaic products is seen earning 18 cents a share on sales of $200.4 million. In recent weeks, the stock has made up a lot of ground after diving 68% from its December peak.
The stock's Energy-Other group continued to be one of the day's top gainers. Volume was tracking sharply heavier among the bulk of the group components.
IBD 100 firm Flowserve (FLS) gained 1.63 to a new high of 127.86. The stock is now 8% past a 118.10 buy point from a second pullback to the 10-week moving average.
Salesforce.com (CRM) climbed 1.75 to 69.70 in heavy trading. The business software maker has delivered two straight quarters of triple-digit profit growth. Analysts expect another one when the firm reports next week.
On the downside, Fluor (FLR) retreated 4.15 to 186.88 is brisk trade. The pullback came despite news that the construction and engineering firm inked a $1.8 billion contract to build a wind farm in Britain. On Tuesday, the stock surged nearly 15% on blowout earnings.
The major stock indexes continued to pack on gains in morning trade Wednesday.
At 10:54 a.m. EDT, the Nasdaq and NYSE jumped 1% and 0.8%, respectively. Both regained their 200-day moving averages. The Dow and S&P 500 tacked on 0.9% each.
Volume was tracking higher across the board, especially on the Nasdaq.
Solar-related issues were on fire, while machinery and oil-related stocks retreated.
Sohu.com (SOHU) gapped up and gained 2.05 to an all-time high of 83.85. The Chinese Internet portal is now 29% past a 64.93 buy point from a cup base. Sohu's profit and sales accelerated in recent quarters.
New Oriental Technology and Education Group (EDU) climbed 3.03 to 75.84. It's rebounding from a recent pullback. Mutual fund ownership of the stock has nearly doubled in the last three quarters.
Apple (AAPL) added 1.66 to a four-month high of 191.62. The maker of iPod and iPhone is shaping a possible cup base with a 203.06 buy point -- unless it builds a handle.
On the downside, Natus Medical (BABY) dropped 1.08, or 5%, to 20.44 in heavy trading. The maker of medical devices for newborns announced an offering of 3.5 million shares.
Stocks opened with strong gains Wednesday following better-than-expected consumer price data.
At 9:58 a.m. EDT, the Nasdaq and S&P 500 had each gained 0.8%. The Dow climbed 0.7% and NYSE composite 0.6%.
Volume was tracking lower on the NYSE, but much higher on the Nasdaq.
ReneSola (SOL) gapped up and ran 2.04, or 9%, to a new milestone of 23.71. The Chinese maker of solar wafers grew Q1 profit 155% to 28 cents a share, or a nickel above views. Revenue more than tripled to $123 million, well above estimates of $105.9 million. ReneSola also raised its full-year sales outlook and announced that it signed a six-year supply agreement with Gintech Energy Corp. Financial terms of the deal were not disclosed.
Group mate First Solar (FSLR) rose 10.25 to 314.23 in heavy trade. It's now 11% extended from a 283.10 buy point from a cup base.
BHP Billiton (BHP) rallied 3.50 to a new high of 91.30 in fast trade. That pushed the mining giant 6% past a 86.51 buy point from a cup-with-handle pattern.
On the downside, Transocean (RIG) gave up 1.41 to 147.71. The oil and gas driller has been hit with heavy bouts of selling recently.
Crude oil fell $1.15 to $124.65, ahead of the weekly energy report at 10:30 EDT.
Stock futures signaled a higher start for equities Wednesday, following tame inflation data.
Nasdaq futures rose 8 points vs. fair value, S&P 500 futures gained 7 points and Dow futures climbed 44 points.
In economic news, consumer prices rose 0.2% in April, slightly less than estimates for a 0.3% rise. Core prices, which strip out food and energy, edged up 0.1%. That was less than the forecast for a 0.2% gain. Headline prices climbed 3.9%, down from a 4.1% increase a year earlier. And the core rate slipped to 2.3% from 2.4%.
Diana Shipping (DSX) gained 5% in pre-market trading on strong earnings. The Greek shipping concern delivered Q1 profit of 71 cents a share, up 78% from the prior year and 4 cents above views. Sales, which more than doubled, also topped estimates. Diana declared a quarterly dividend of 85 cents a share.
MercadoLibre (MELI) tumbled 10% in the pre-open after it missed views. Late Tuesday, the Latin e-commerce firm delivered Q1 profit of a nickel a share, up from a penny a share in the year-ago quarter but 4 cents below estimates.
Deere & Co (DE) stumbled 5% in the pre-market on disappointing results. The farm equipment maker reported fiscal Q2 earnings of $1.74 a share, up 28% but a penny below views. Deere also warned that rising material costs could cut into near-term profit.
Freddie Mac (FRE) jumped 5% in pre-market trading after it reported a smaller-than-expected loss. The government sponsored mortgage finance firm said it lost 66 cents in the first quarter vs. analysts' estimates for a loss of 92 cents.
Increases in delinquency rates and projected severity of losses by declines in home sales and home prices resulted in credit loss provisions of $1.2 billion for Freddie Mac. It also plans to raise $5.5 billion capital through offerings of stock and non-convertible securities.
On Tuesday research firm Realty Trac said that the number of homes facing foreclosure rose 65% on a year-over-year basis. Arizona, California, Nevada and Florida were the hardest hit states.
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THANKS!
Jim :-)
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