Week Of June 1 st

Optimistic on Markets still …cautiously optimistic
The market continues to remain strong over the past few weeks as consumer sentiment had the 4th largest percent increase in the 32 year history of the survey. This 54.9 number indicates the highest reading in 8 months and may lead to consumers loosening their grip on their wallet. While consumer confidence is still weak by historic standards this number may indicate a blow off bottom of bearish sentiment. This may also lend itself to the notion that the markets are more tied to people’s emotions then the reality of the events taking place. With that being said I wrote back on 5/4 that I was a short-term bull with a potential for a short-term pullback. We got the rally and we got the small pullback. The question now is where we go from here.
We are going up on the averages out of the gate this morning with the S&P breaking above the 200-day moving average for the first time since last year. I will remain bullish if we close above the 200 day and above 928 on the S&P. If this happens we should have clear sailing up to 1000 on the S&P. I suspect that the short interest investors and the sideline money will need to cover their shorts and get off the sidelines for fear that they will get burned or miss a big upside move. This should get us to that 1000 mark I indicated. The warning label for today would read-If the markets reverse intraday today to down or unchanged with big volume on the reversal I will take the position that it may be a key reversal day and the upside move has ended in the short-term. Yes- today’s closing action is important.

Individual ideas on stocks and sectors are as such.

Let’s start with the fact that I talked about technology stock and specialty retailers showing signs of life. On that note you would of done very well in select retailers. You just saw Cisco be added to the DOW Jones average. You have just seen MSFT and INTC break above their 200-day average and more specific the semiconductors earning and technical power both seem to be improving still. Forget what the Talking heads on Wall Street are saying. The numbers and data don’t lie.
While we are still optimistic we urge you to keep your stops in place and stay disciplined in regards to buying stocks close to the 20-day and 50-day moving averages. Please do not chase stocks and buy any stocks that are extended more then 5% to 7 % above the 50-day moving average or 3% to 4% above the 21-day moving average. (Please refer to my book. If you do not have a copy I will send you a complimentary copy).

Here are some ideas to consider that are not extended. After today they may have rallied so you may have to wait for a pullback.

Pharma’s-SEPR
Application software- MSCS
Retail Auto-PAG
Integrated Telecom-CTL
Data Processing-PAY
System Software-ORCL
Restaurants-THI
Reinsurance-ENH
Apparel- WRC
Semi’s-POWI-XLNX-FCS
Chemicals-OMG
Metals and glass container-OI
Industrial Conglomerates – CSL

Please give us a call if you have any questions. If you are not using our stock analysis software and would like to contact us at 888-592-7575
Stephen Pizzuti-Founder of Evaluvest LLC and Author of Pizzuti Power

Joe Ondris 407 389 8511 or Jason Garcia 407 389 8523

Stock Market Analysis – Week of 5/4/2009

The fun has just begun. Those people who have understood that the world wasn’t coming to an end, realized we were overdue for a dead-cat bounce, and acted on my previous commentary are now making money.
The fun I am referring to is the constant misdirection coming from the the Wall Street Pros and other talking heads we hear each day. These experts can’t seem to decide whether to be bullish or bearish. Ultimately for every bearish expert you can find a bullish expert that contradicts him/her. One thing that does stand clear is Doom and Gloomers are still looking for a retest of March lows – yikes. What to do, what to do? .
Basic Market cons – the basic argument for a pullback is that we are trading at high multiples to 2010 earnings P/E’s. We have taken a huge move off the lows. All the major Indices and many of the critical stocks and sectors are approaching their 200-day moving averages.
Basic Market pros- we are still so ridiculously over-sold that none of the above cons really matter. Do we have any ideas about 2010 earnings? The answer is no. The liquidity pumped into the financial markets along with investment monies waiting on the sidelines may attract buyers based on fear that they will be missing the potential big move up. Shorts have been buying stocks back and are getting increasingly nervous. Large Cap Tech has been starting to show signs of life off the bottoms. We seem to be seeing a lot of individual stocks and ETF’s forming their own versions of reverse head and shoulders bottoms. This would be opposite what we saw forming through June-August of 2008. Take a look at some chart data back then.
Conclusion- Only buy stocks that are still close to their short-term moving averages like the 21-day or 50- day, respectively. Do not buy stocks that are extended beyond 5% of the 50 day. Definitely do not buy stocks close to their 200-day moving averages unless it is sitting on top of it. Lets take the attitude that we will have trouble breaking up through the 200 day moving averages on the major Indexes using the S&P as our focus index. Yesterday’s action seems to indicate that we should hit the 200 day on the S&P as it appeared to puncture through some short-term resistance. We get a follow through today to the upside lets expect a to hit the 200 day moving average on the S&P. Then pullback. If we fail today I will reconsider my position and assume we will take a breather into next week.
I’m short on time regarding posting Individual stocks for review so please give us a call at 1-888-592-7575.

Steve Pizzuti

Stock Market Analysis – Week of 4/27/2009

For the last several weeks I have expected the markets to rally up to 8000 resistance on the DOW and up to around 900 resistance on the S&P. Once this rally occurs then the jury would be out. As the data shows, we were successful in our prediction.

Starting today, I was expecting a continued rally through earning season completion where I believed we could sit above 8000 as support and get above that short-term 877-880 resistance on S&P. This predicted resistance would then provide future support to break above 900 on the next leg up. Well, I didn’t expect a swine flu scare to drop us from these most recent highs. The potential for a pullback after earnngs season had ended was my plan of attack. That’s the stock market for you. Adapt or perish!

Some of my thoughts have come to pass. The information below shows my previous ideas that have born fruit (copied from prior posts because I hate typing). Please note that these stocks and sectors have been leading us up from our lows. Alos, Internet Retail is a not a known indicator. I discovered this works in troubled times.

Prior comments from March 24th
I wrote previously about my Google, Amazon, Yahoo theory – if these stocks start to perform and improve on an earning power (ALPHA) and technical basis, the overall markets will get better. I already see evidence that this is being achieved. I would like to add that, if technology starts to kick in, we will start to move up substantially. If you look strictly at the data, you cannot ignore that the sectors with the greatest earning power increase are the technology groups. In addition, you have Regional Banks, Restaurants, and Specialty Retailers picking up some steam. I posted several ideas of stocks in these sectors over the last several months. The Obama Healthcare plan put a scare into the healthcare sector and their stocks, but this could give us some select opportunities as well.
Stocks for consideration this week

Sector	Stock Symbol
Software	ETF, IGV
Beverage	CCE
Oil and Gas Drilling	PDE
Wireless Telecom	AMT
Packaged Food	MKC, HRL
Utilities, Multi	PCG
Integrated Telecom	TWTC, CTL
Life Sciences	CRL
Heavy – Electrical and Equipment	ESE
Application Software	FDS
Semiconductor	XLNX

End of Prior comments

Some of these stocks and sectors have gotten a little extended and may need some time to consolidate before a secondary move up. Usually, the second move up is more powerful than the first technical breakout move. (Many more stocks and sectors have been posted for clients and Evaluvest members access).

Looking at the data on most DOW components, we seem to have achieved a quantitative bottoming out (ALPHA) and have gone through a technically exhausting selling process which seems to be in a consolidation mode for most of the depressed DOW components. Looking at INTC and MSFT I am seeing constructive activity. I’m looking at the financials and seeing constructive activity. I’m looking at aerospace seeing constructive activity. Dare I say that the financials are beginning to show some type of ALPHA to support their dead cat technical bounces?

Sector Talk

If you go strictly on the data you cannot deny that a sector like Aerospace is showing some life after Obama’s defense budget scares fade. Most banks like regional, diversified asset management, financial services, consumer finance and data processing are improving and possess some opportunity at these levels. They should not be bought after big moves up. They should be bought close to their 21-day moving averages. Internet software and services still looks good and I expect to see a nice ramp up in several of these stocks if the recovery stays intact. Random sectors like Pharmaceuticals, Retail Food, and Air Freight are also heating up with one or two interesting stocks to consider.

Stocks and sectors of interest

Lets take a look at:

Healthcare services
RSCR
Healthcare supply
IMA
Pharma
LLY
Insurance, Life and Health
DFG
Financials
Diversified Banks- WFC
Financial Services-BAC
Regional Banks-PRSP, WABC
Consumer finance-DFS
Asset Management-AMP
Financial ETF-IYG
Retail-Computer and Electronics
GME
Retail-Internet
GOOG
NTRI
Communication and Equipment
QCOM
CIEN
GLW
Specialty Chemicals
SIAL
Air Freight and Couriers
UTIW
Trucking
WERN
Aerospace and Defense
GR
AXYS

Please remember I have strict rules when to buy and sell these stocks. If you do not have access to these rules, please request a free copy of my book Pizzuti Power at www.pizzutipower.com

Steve Pizzuti

Stock Market Analysis – Week of 3/23/2009

Market Commentary
Still Maintaining a Bullish Bias
Going through and re-reading my prior comments, I indicated that critical visibility was needed to help move the markets forward. Unfortunately, this critical visibility was not delivered in a timely fashion. Our newly elected President was M.I.A. in this regard. President Obama and his team did not take any actions in mid-February that clearly and decisively addressed the struggling financial systems, resulting in a corresponding dip in consumer confidence and triggering an additional sell-off. This sell-off brought the DOW down to 6600 and the S&P down to 680. In fairness, I’m not sure that even if the President made an attempt to provide additional commentary, investors would have given him the confidence and credibility needed to support the financial markets. I say this only due to his inexperience managing any and all aspects of such a critically broken financial system.

However, Fed Chairman Ben Bernanke did come through for the investment public by providing this critical hand-holding, confidence, and conviction to restore financial credibility in our leadership. The Fed Chairman provided this leadership by unveiling a multiple resource attack on several specific financial issues; targeting each issue with a distinct solution. The multifaceted approach the Fed has implemented isolated each issue, demonstrating depth, innovative thinking, and the beginning of control over the current financial distress. I am now a fan of Ben Bernanke. The jury is still out on our new administration, but I am seeing positive signs of this same innovative and refreshing solution-driven attitude. Unlike the media, I may be a fan of Timothy Geithner real soon for the same reasons.

Please remember that the rest of the economic world is in trouble, and although our economy is in trouble, the United States is still the safe haven for investment dollars. This puts a built in floor on our financial markets with overseas buyers always buying our markets for safety.

Positioning over the last several weeks in equities, with new resistance expected at 8000 and 850 respectively, looks positive for completion. This morning’s additional clarity regarding the creation of a liquid market for toxic assets is on the table. It appears that the financial markets are in approval of the initial plan and believe that this may create a profitable market for the buying and selling of these assets.

OK, here’s some food for thought.

Is it possible that, in the long run, this horrible financial and economic condition will produce an extremely positive economic windfall for our Federal government? Lets explore this idea a bit.

If the federal government has a huge domestic deficit and owes the world trillions in debt, it is possible that by investing and purchasing domestic assets for pennies on the dollar and re-purchasing long-term government paper from other countries at deep discounts, a huge financial windfall for the Federal government will result.
If the government managed to pull off the greatest economic comeback in the history of the world, while receiving substantial profits from its investments, it would seem logical that the U.S would have the financial liquidity and strength to invest in the repurchase of our global debt from countries still in a recession needing money. Hmm!- if I believed in conspiracy theories this could be the beginnings of a good one.

Sector talk
I wrote previously about my Google, Amazon, Yahoo theory – if these stocks start to perform and improve on an earning power (ALPHA) and technical basis, the overall markets will get better. I already see evidence that this is being achieved. I would like to add that, if technology starts to kick in, we will start to move up substantially. If you look strictly at the data, you cannot ignore that the sectors with the greatest earning power increase are the technology groups. In addition, you have Regional Banks, Restaurants, and Specialty Retailers picking up some steam. I posted several ideas of stocks in these sectors over the last several months. The Obama Healthcare plan put a scare into the healthcare sector and their stocks, but this could give us some select opportunities as well.

Stocks for consideration this week

Sector	Stock Symbol
Software	IGV
Beverage	CCE
Oil and Gas Drilling	PDE
Wireless Telecom	AMT
Packaged Food	MKC, HRL
Utilities, Multi	PCG
Intergrated Telecom	TWTC, CTL
Life Sciences	CRL
Heavy – Electrical and Equipment	ESE
Application Software	FDS
Semiconductor	XLNX

Thank you for your interest in Evaluvest.

Steve Pizzuti
Founder and Developer of Evaluvest
Author of Pizzuti Power

Week Ending March 06.2009.

With the DOW closing the week @ 6 thousand and change it’s no wonder most investors are holding onto what they have and are waiting for the markets to turn around within 6-12 months. This is a good traders market to turn in and out of positions. TRA, CBRL and CY were good reco’s looking back at our Monday ideas for just this type of trading. Limiting your loss with stop orders is always important whether you’re looking to gain 10% on the upside and risk 5% on the downside on the trade or more aggressively with 10% on the downside and %15 on the upside TRA, CBRL, and CY would have generated positive returns in 5 market days. We suggest you continue to keep a solid track record and check back into our Monday Idea updates and follow up throughout the week on a few solid plays which you are comfortable with. Have a great weekend and don’t forget to add us as a Friend on Facebook: Evaluvest Invest. Evaluvest, Altamonte Springs, Florida. 407.389.8500, reference WordPress with the Secretary and ask to speak with a broker to receive some free stock market advice next week. Enjoy your weekend !