Monday, May 08, 2006

Boring Quiet Day For Stocks Leave Indexes Flat For The Day; DELL Misses After Hours But Who Cares?

Major market indexes basically did nothing today, after Friday's gains. The digestion of the games with a slight positive is a nice thing to see after such a good day as we had on Friday. It beats giving it all back up on higher volume!

The dead action in the indexes, I guess, can be blamed on Wednesday's FOMC meeting. This one is particularly interesting as the market for the first time in a while is not completely sure what will happen this time. I am going with the trend and say one more hike. That will make the 16th hike in a row since June 2004. If Bernanke pauses I guarantee there will be some volatile trading after the meeting. We shall se what happens there when we cross that bridge.

All the indexes moved with a .1% range and volume was lower on both the NYSE and the Nasdaq. Breadth was pretty much even on the NYSE and slightly negative on the Nasdaq by an 8-to-7 margin. Basically a dead boring day, as I have been saying.

The top performing industry group today was the Agriculture Operation group and the Metal-Products-Distributor group fell 3.1% leading all industry groups to the downside. ERS was the main blame there. Did I call the top on that or what? Was it magic? Was it luck? Or was it history repeating itself? Hint: Question 3 is the right one.

The only other interesting thing that happened today was after the bell. DELL missed and disappointed investors with their guidance. Why is that interesting? Heck, I don't know. Why does anyone care or even invest in these old dinosaurs anymore. If anyone has MSFT, DELL, INTC, or CSCO in their portfolio, they should fire their broker immediately. I don't care if you are 80 yrs. old; you should have ZERO shares of the four companies just mentioned. They are dinosaurs and don't even make good value investments. These stocks simply are not leaders anymore and have NO major influence on the market anymore. Take MSFT's 15% hit last week. How did the "tech heavy" Nasdaq do? It went up 1%. The talented investors and traders don't care about these stocks anymore and neither should you.

CSCO's earnings are tomorrow. Alright, now we can waste another 8 hours of our day talking about earnings that no true active intelligent investor should care about. Besides that, don't expect much as we will probably have to wait until Wednesday for anything fun to happen.

I hope everyone had a great day today and I shall see you tomorrow! Aloha from the most beautiful place on earth!

New Swing Longs: VTIV BRR DTLK SABA BW GPIC -- For more info on swing longs, go to Investors Paradise.

New Swing Shorts: NONE

Longs Outperforming Market: PKE-26 IFO HOM-86 FWLT-71 GIGM-241 COGO-79 NNDS-40 WIRE-216 MNST-69 RADN-47 NGPS-25 TTES-68 ARS-68 CTXS-72 SNDK SMSI-72 NCTY NMR-51 FRGB MDCC-44 AKAM-125 MTU RATE-197 KEX-60 VPRT LTM CORS MORN SCVL SLW-132 NXG-219 GLBC BGC-101 SPIL RMBS ZEUS-70 FSTR TRAD-55 STRL-50 HEIA-43 EAGL-90 BAM-39 TOMO-41 STX-26 KDN-26 VLG CBG-134 MFLX-201 AXE-41 BBD-140 BWLD TGE-61 RUSHA TAM SPWR-42 DIL-27 PEIX-119 LTS STKL-67 SWIR-64 SATC-54 MT-27 MERX-50 AOB LWSN TGB-161 WEBM KNOL-111 PWR-31 SFE-27 TTEK TMY SPSX-65 CPTS-30 RAIL-78 NTO-101 PRVT ACR-73 SMTX SPNC-106 DA LII ING-34 CVA OMCL MEL NAVI TFR-100 SNTO SIM-47 CTEC WDHD

Shorts Outperforming Market: NONE

Stocks On Radar Screen: XTXI

Disaster Of The Day: UIC -- Leaving with a 39% gain.

7 comments:

Joshua_NControl said...

Or-Kiter: You are absolutely correct on message board chatter, unless it is ALWAYS chatty like a tech stock. If it is normally a quiet board and all of a sudden the chatter rises to extreme levels something very dynamic is about to happen. This time it was ERS and it was very negative. All I have to say about ERS is: charts work and history always repeats itself.

Or-Kiter: SVL: The day to go long was 4/18. I am not sure if I posted it as a stock on radar screen. But I sure did spend a lot of time looking at it and then not pulling the trigger. That has cost me 26%. Very nice stock.

Good luck on whatever you have. Drink plenty of Gatorade and rest up. Don't do anything crazy either.

Joshua_NControl said...

Thank you, market, for answering the question for me.

I really appreciate it!

Joshua_NControl said...

Thank you, Topsy. But remember I have always been happy and still am. I just lost someone I love very much. Her loss. Not mine. And if I don't find anyone? It will be a blessing! Seriously.

Mac said...

Hey, Josh, I have a couple of pullbacks that I am looking at and wondered what you thought. I am questioning whether they are a bit too choppy. IVAC and ECIL?

Also does GES look like it's turning into a cup with handle? Or has it run too much already?

Thanks as always Josh for what you do.

Mac said...

Hey, Josh, one more question. I went long along with you on IFO about a week or so ago. Do you see similarities between the chart of it now and DXPE back in December of 2005? Big run up, pulled back to the $12 area, and then took off again? Similar float, similar fundamentals. Could this be used as a guide for what IFO could do? I know it is impossible to predict what will happen with a stock, but I know O'Neill talks often of studying past charts of winner to learn from them, and I'm trying to do that. Thanks.

Anonymous said...

NVD AEY....only 2 losing picks of the last few weeks...

I sold both after going down 7% .........should i get back into them.....

your other picks are great...starting using ur idea to get stocks from IBD, great source..

i am short on RIMM.....losing market share, recently broke below the 100 day MA and has been below the 50 day MA...any thoughts here? looking to get some PUT LEAPS...i think the competition will drown RIMM?

started my CFA studying, and loving it...any suggestions for learning aids?

Kelly

Anonymous said...

loving Gold, shorts getting creamed. i see your point on SVL but i liked yesterday breakout better that 4/18 becasue yesterday its broke above Dec resistance on substantial volume(and it was post earnings)....kelly, i would be cautious on shorting RIMM, yeah its working now but i would have waited til it broke 200day and its still holding above L-T weekly avg..tough market to short in right now(stay with the trend). i would have trouble sleeping at night being short a hi-beta stock like RIMM in a strong mkt...good luck on CFA, wait til you get to level 3- its a pain in the ass. i learned alot from CFA but i dont think its ever made me money from that info, o'neill/IBD is real-life applicable(its a system). yeah CFA taught me efficient frontier portfolio theory, but what the heck am i going to do with that info(i've forgotten most of it already). - or-kiter