Apple Earnings Blowout and Fed Surprise
The Greek government is still trying to work out an important agreement with its private sector creditors by the end of this week. But while the market waits for that, Apple had an absolute blowout earnings quarter and finished up over 6% for the day. Although, there was some profit taking at the highs which means the trend is ready for a breather. And the DJIA had a big reversal day of 200 points when it hit a low in the morning of -95 points and went over +105 points late in the day. It finally finished up +83 points.
The DJIA is nearing its 2011 highs and the S&P 500 is also trending up towards its 2011 high. The S&P 500 finished at 1326 with the target highs between the 1350 to 1360 area. The Fed's news of extending the current low interest rates to the end of 2014 really spurred on buying late in the day. It was a bit of a surprise to many and their language still left the door open to QE3. Extending free money availability another year was viewed as bullish news.
The markets have come a long way from the end of November and in the last 30 days. The technicals are very extended and a 2 to 3% pullback would be healthy. The question is whether a pullback comes before testing the highs first or not. That is a difficult call at this point.
The natural gas bottom call MR made over the weekend was a good one. It has moved over 17% in just 3 days and is the biggest move in 4 years. It certainly helped to have Obama mention natural gas in his talk last night. Wait for a pullback to look at those stocks again if you didn't get in yet.
Using the Power Stocks Table:
(1) Risk: Conservative (Cons); Moderate (Mod); Aggressive (Aggr); Speculative (Spec)
(2) Stop: Typically use a 3 to 4% closing stop below the entry price
(3) Trailing Stops: Use the 10 EMA (Swing) or 20 SMA (Short Term Trader) for protecting gains once above it; SMA = Daily Simple Moving Avg; EMA = Daily Exponential Moving Avg.
Top Value Stocks to Buy for 2012 - Financial Stocks - Part 4
Our focus for the last financial picks will be in the brokerage and asset management areas.
These stocks still may have some more selling in 2012, but investors that can scale in just a bit at these levels should still be okay for a more than 2 year holding period. The positions should be small ones in your portfolio but the gains could be 100% or more conservatively with patience on many of these picks.
News could potentially drop these stocks more in the coming months. So trade with small amounts accordingly. True valuations are difficult to determine but we have included the PE ratios and reported Price-to-Book ratios in our chart. Our top stocks by risk are highlighted.
Top Asset Managers and Brokers:
The Greek government is still trying to work out an important agreement with its private sector creditors by the end of this week. But while the market waits for that, Apple had an absolute blowout earnings quarter and finished up over 6% for the day. Although, there was some profit taking at the highs which means the trend is ready for a breather. And the DJIA had a big reversal day of 200 points when it hit a low in the morning of -95 points and went over +105 points late in the day. It finally finished up +83 points.
The DJIA is nearing its 2011 highs and the S&P 500 is also trending up towards its 2011 high. The S&P 500 finished at 1326 with the target highs between the 1350 to 1360 area. The Fed's news of extending the current low interest rates to the end of 2014 really spurred on buying late in the day. It was a bit of a surprise to many and their language still left the door open to QE3. Extending free money availability another year was viewed as bullish news.
The markets have come a long way from the end of November and in the last 30 days. The technicals are very extended and a 2 to 3% pullback would be healthy. The question is whether a pullback comes before testing the highs first or not. That is a difficult call at this point.
The natural gas bottom call MR made over the weekend was a good one. It has moved over 17% in just 3 days and is the biggest move in 4 years. It certainly helped to have Obama mention natural gas in his talk last night. Wait for a pullback to look at those stocks again if you didn't get in yet.
Using the Power Stocks Table:
(1) Risk: Conservative (Cons); Moderate (Mod); Aggressive (Aggr); Speculative (Spec)
(2) Stop: Typically use a 3 to 4% closing stop below the entry price
(3) Trailing Stops: Use the 10 EMA (Swing) or 20 SMA (Short Term Trader) for protecting gains once above it; SMA = Daily Simple Moving Avg; EMA = Daily Exponential Moving Avg.
Top Value Stocks to Buy for 2012 - Financial Stocks - Part 4
Our focus for the last financial picks will be in the brokerage and asset management areas.
These stocks still may have some more selling in 2012, but investors that can scale in just a bit at these levels should still be okay for a more than 2 year holding period. The positions should be small ones in your portfolio but the gains could be 100% or more conservatively with patience on many of these picks.
News could potentially drop these stocks more in the coming months. So trade with small amounts accordingly. True valuations are difficult to determine but we have included the PE ratios and reported Price-to-Book ratios in our chart. Our top stocks by risk are highlighted.
Top Asset Managers and Brokers:
Investor Notes:
Investors can start looking again at oil service stocks and precious metal mining stocks. Both look ready to rebound after going sideways or finishing up long downtrends. Many of the precious metal mining stocks had big reversal moves today. We will provide a few oil service picks tomorrow and precious metal mining stocks this weekend.
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