The Rogue Investor » Stock Picks

Markets resume decline, volume unimpressive

Alex — Mon, 24 May 2010 22:01:54 +0000

While shorting the market is very enticing right now, holding off until we see more convincing weakness should increase the odds of profiting.

Today showed us that we have not hit any bottom and that last Friday’s rally was merely a mirage as the professionals were shorting the whole time. The drawback for bears is the lack of volume in the major indexes.

There are two levels of support that we are approaching.

What to take from the chart is that we have yet to fall below a couple close support levels. First is the point at which stocks rebounded that we failed to fall under today, around 10,050. Second is the level at which stocks rallied from last correction, around 9,900. These two support points present significant challenges to investors looking to short the indexes.

Most likely, the market will continue to decline on Euro economic worries and short selling. Still, there is a chance that we could see a burst buying tomorrow and continue forming a base.

If you are looking to short the market, here are several options:

DOG - 1x the inverse of the Dow

DXD - 2x inverse the Dow

FAZ - 3x the inverse of the Dow

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Support found, oversold markets rebound

Alex — Sat, 22 May 2010 03:37:04 +0000

In the last month, the S&P 500 fell 10.65% (including today’s rally). We revisited the support levels established by the flash drop and rebounded in a major way today.

This support line would provide evidence for a bottom here.

Was today really a bottom? Monday will tell us. I think we will see a follow-through day that will confirm that the rally is back on for now. Until it is confirmed, stay in cash with a buy list ready.

Here are some stocks to keep an eye on if the market keeps moving higher:

CRM - Salesforce.com

NDSN - Nordson Corporation

HIBB - Hibbett's Sports, Inc.

These stocks should only be bought if they break into new highs and the market is in a confirmed up-trend.

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Top on NFLX?

Alex — Fri, 14 May 2010 00:43:43 +0000

Today's close off highs brings NFLX's strength into question.

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As Gold outperforms, check out $ABX, $IAG, and $GG

Alex — Wed, 12 May 2010 16:39:38 +0000

Gold reached all-time high levels this week and investors looking to profit on further advances should consider $ABX, $IAG, and $GG.

Currently, the market is still officially in a correction so it is unadvised to take on new longs, but considering what the S&P 500 has done, these stocks look like possible longs. Also, you can check gold’s price here and from a technical standpoint, to stay bullish on gold, its price must stay above $1245. It looks like we may see a pullback and possible breakout in the future so watch that.

Buy at $21.20

Buy at $48.50

Buy at $46.85

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Long Picks: CRM, VIT, VMW, & WBMD

Alex — Tue, 13 Apr 2010 02:32:51 +0000

After a lackluster session today, these four stocks jumped out on my watch-list. They are all strong companies and have good looking, bullish action lately.

Salesforce.com

VanceInfo Technologies Inc.

VMware, Inc.

WebMD Health Corp.