Stockscom Report for Sunday June 17 2007
Publisher: Colin Alexander
Editor: Ken Wilson (450-691-4617)
Subscriptions and Administration: Pierre Fichaud (toll-free: 866-487-9711)
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Stocks rebound firmly
Technically Speaking
As mentioned last week, the dip in stock prices was certainly temporary and
could only be defined as a small correction despite the “sky is falling”
commentary of some talking heads. While we didn’t believe in these comments, we
could never have predicted that the market would react so strongly.
Reiterating what we said last week, the fact that the S&P 500 achieved a
landmark new all-time high is simply too important to ignore and the market will
not suddenly keel over having reached this point, but will rather gain traction
from this momentous event and use it to propel prices further. Friday’s volume
was extraordinarily high, which translates to a very bullish scenario for the
near term.
In particular, the tech sector could be the leader for the stock markets to move
higher over the early part of summer if we are to understand anything from the
significant gap opened on both the Nasdaq twins Friday. A similar action in
mid-April caused the market to rise almost every trading session for the better
part of three weeks. Despite that potential for profit, we prefer to resist the
temptation and maintain positions with “nuts and bolts” types of companies for
the most part.
Support for the DJ-30 lies near the low from Thursday around
13,250 with lower support around 12,750. Correspondingly, support for Nasdaq
Composite is located near the lows from Friday at 2535 and for the S&P 500, at
around 1475.
New Buy Recommendations (in order of preference):
Cleveland-Cliffs (CLF) After having retraced a major part of its sharp gain
that began near the end of May, CLF appears poised to recommence its upward
shift in price. The smart gap higher on significantly higher volume Friday was
sufficient to signal its intentions to revert to upward movement. This stock is
essentially a very steady performer trading on a low multiple and with the
increased global demand for steel, it should continue to benefit.
Opsware Inc. (OPSW) Friday’s gap higher and close above the November high was a
significant move upward that undoubtedly will lead to follow through. There has
been substantial buying since the end of May on the daily chart, which itself
began on a gap higher. And on both the weekly and monthly charts, we see that
this new high pushes it through previous resistance at the $10 level.
New Short Sales
None.
Stock Positions to Sell/Exit:
We were exited from Echostar Comm on our stop.
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 |
| 04/30/07
|
Allied Waste Ind. |
AW |
13.37 |
13.91 |
12.00 |
B |
| 06/11/07
|
Amer Sci & Eng |
ASEI |
56.25 |
56.85 |
50.00 |
B |
| 04/09/07
|
Cameco Corp. |
CCJ |
46.22 |
55.60 |
42.00 |
B |
| 12/26/06
|
Cheniere Energy |
LNG |
29.15 |
40.93 |
37.00 |
B |
| 05/29/07
|
Dycom Industries |
DY |
29.32 |
30.00 |
26.00 |
B |
| 01/16/07
|
Echostar Comm |
DISH |
40.36 |
44.00 |
44.00 |
SOLD |
| 06/11/07
|
Euroseas |
ESEA |
14.92 |
15.75 |
13.35 |
B |
| 03/26/07
|
Fronteer Dev’t Grp |
FRG |
12.40 |
11.47 |
11.00 |
H |
| 05/21/07
|
Gerdau Ameristeel |
GNA |
15.25 |
16.00 |
13.00 |
B+ |
| 11/13/06
|
Goodyear Tire |
GT |
18.00 |
35.32 |
30.00 |
B |
| 03/12/07
|
Grant Prideco |
GRP |
46.75 |
59.27 |
52.50 |
B |
| 05/07/07
|
Intercont Exch Inc. |
ICE |
138.48 |
156.98 |
140.00 |
B |
| 04/09/07
|
Matrix Service Co. |
MTRX |
24.28 |
26.50 |
24.00 |
B+ |
| 04/30/07
|
Portfolio Rec. Ass. |
PRAA |
56.17 |
59.42 |
49.00 |
B |
| 04/23/07
|
Synalloy Corp. |
SYNL |
36.39 |
44.60 |
30.00 |
B+ |
| 03/19/07
|
Tsakos Energy Nav |
TNP |
49.50 |
67.87 |
58.00 |
B+ |
| 03/26/07
|
Vasco Data Sec’y |
VDSI |
17.92 |
22.52 |
18.00 |
B |
New stops in BOLD
* Stop on a closing basis
** Buy if above entry price
*** Split-adjusted price