Stockscom Report for Sunday Feb 4 2007
Publisher: Colin Alexander
Editor: Ken Wilson (450-691-4617)
Subscriptions and Administration: Pierre Fichaud (toll-free: 866-487-9711)
- ·
Tech stocks remain in limbo
Technically Speaking
While the tech-heavy Nasdaq twins putter along well below their heights
reached at the beginning of January, the other markets have touched new
high-level markers. In particular, we note that the DJ-Industrials, the Russell
small cap index and the S&P-400 Midcap index have all closed and continue to
mark new all-time highs. Meanwhile the S&P-500 has extended its winning streak
but lies more than 100 points below its all-time high reached at the pinnacle of
2000.
This week though provided more fodder for those with a technical bent. The DJ-20
Transports finally carried through with a new high of its own and therefore
according to Dow Theory, this move confirms the new high reached on the DJ-30
Industrials despite being four months late. Dow Theory indicates that whenever a
new high on the Industrials average is confirmed by a new high on the
Transports, the “up” direction is the dominant force and there is a strong
likelihood of stock appreciation amongst their constituents.
Nonetheless, the length of this rally, starting as it did in July, leaves us
concerned that it needs to be re-energized and this could only occur if some
retracement shook out the weak longs. Presently, the long upward moving channels
which had contained prices on both the DJ-30 and the SP-500 have been struck by
fatigue as prices continue to rise but below the bottom boundary of the channel.
Interestingly however, is that their respective 40-day moving averages have
taken up duties as the ultimate support lines for both of these index averages.
New Buy Recommendations (in order of preference):
None.
New Short Sales
None.
Stock Positions to Sell/Exit:
None.
Portfolio Comments:
New stops have been added to the list while others have been modified. Those
that have blanks are being carried unstopped for now. Please see our complete
list of stops in the table below.
List of Current Stock Recommendations:
Action Ratings. The following is the legend for designating immediate action
for our stock recommendations. The first is B, meaning the stock is timely
to buy but the case for doing so right here is not overwhelming. Either the
stock may have gotten ahead of itself and may be vulnerable to a retracement or
else the stock has been performing disappointingly but may simply be
regrouping. B+ and B++ indicate stocks for which there is a technical case
to buy now, with plusses adding weight according to how many there are, up
to a maximum of two. Stocks rated H are ones to hold, awaiting confirmation
to buy more or to sell. SELL, of course, means what it says. It seldom pays
to override this designation. In the case of stocks held short, the rating is S
where positions should be retained. S+ and S++ indicate stocks for which there
is a technical case to add to the positions with plusses adding weight similar
to long positions. The maximum number of plus signs is 2.
N.B. There are no longer restrictions on foreign stocks held in Canadian
retirement savings accounts.
| Date of Entry
|
Name |
Symbol |
Entry Price |
Current Price |
Stop |
Action Rating |
| 01/08/06
|
Barr Laboratories |
BRL |
52.57 |
53.97 |
49.90 |
B |
| 12/26/06
|
Cheniere Energy |
LNG |
29.15 |
27.80 |
25.80 |
H |
| 10/23/06
|
Coca-Cola Co. |
KO |
46.75 |
48.24 |
47.00 |
B |
| 09/25/06
|
Cognos Inc |
COGN |
35.20 |
42.56 |
40.00 |
B |
| 12/11/06
|
Credence Systems |
CMOS |
5.02 |
4.85 |
4.50 |
H |
| 01/22/07
|
Crown Castle Int’l |
CCI |
36.21 |
35.14 |
33.00 |
H |
| 01/16/07
|
Echostar Comm |
DISH |
40.36 |
40.38 |
37.00 |
B |
| 01/03/07
|
Fronteer Dev’t Grp |
FRG |
9.53 |
10.74 |
8.00 |
B |
| 11/13/06
|
Goodyear Tire |
GT |
18.00 |
24.89 |
20.00 |
B+ |
| 10/23/06
|
I-Flow Corp |
IFLO |
15.02 |
15.85 |
15.00 |
B |
| 12/11/06
|
Isis Pharma. |
ISIS |
12.53 |
10.51 |
10.00 |
H |
| 01/29/07
|
MEMC Elec Mats |
WFR |
51.90 |
52.64 |
43.00 |
B |
| 10/30/06
|
Millennium Pharm |
MLNM |
11.58 |
11.14 |
10.50 |
H |
| 11/13/06
|
NYSE Group |
NYX |
96.50 |
99.50 |
90.00 |
B |
| 12/26/06
|
Qiao Xing U Tele |
XING |
13.67 |
15.81 |
13.00 |
B |
| 01/22/07
|
Videsh Sanchar N. |
VSL |
22.04 |
22.95 |
19.50 |
B |
| 11/06/06
|
Watts Industries |
WTS |
41.25 |
44.54 |
37.75 |
B+ |
New stops in BOLD
* Stop on a closing basis
** Buy if above entry price
*** Split-adjusted price