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
This entry was posted
on June 1, 2009 at 4:41 pm and is filed under Weekly Market Commentary.
You can subscribe via RSS 2.0 feed to this post's comments.
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
This entry was posted on June 1, 2009 at 4:41 pm and is filed under Weekly Market Commentary. You can subscribe via RSS 2.0 feed to this post's comments.
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