All Analysts
Vote "No" on the Market
At
the Stock Traders Press we take seriously our responsibility
of providing well-researched and profitable buy recommendations
to our clients. As evidenced by the list of 9 stocks below
that hit target over the past week we do a pretty respectable
job. Last year our Spotlight Stocks returned 149%. Each week
we review up to 1500 NASDAQ and NYSE stocks prior to making
our recommendations. In every weekly issue over the past 3
years we have always been able to find at least a handful
of strong recommendations for our clients. Our goal is to
pick stocks that will ideally rise 20-30% in just 1 to 3 weeks
from when we recommend them. Today our research department
ended up in a quandary. Few if any stocks look attractive.
When we polled our in-house research staff not one single
analyst felt comfortable with current market conditions. The
NASDAQ market has run up nearly 20% over the past week and
looks poised to do some backpedaling at these levels. It makes
no sense to force a trade. There are times when the best wisdom
dictates that investors step to the sidelines and wait for
a more attractive point to re-enter the markets. It makes
little sense to initiate new long positions at this time.
But, we believe there will be attractive buying opportunities
at the end of this week or early next week. We could put
out this weeks research report with buy recommendations that
would probably seriously under perform the strong return our
clients have seen recently. A common mistake investors make
is to force a trade where one doesn't exist. On Monday 6/5/00
the markets held the gains seen in the market last week. Traders
were pleased to see prices hold after such a quick rise in
the market. Today was a very different situation. Stocks traded
sideways to mildly higher in a tight trading range through
the early afternoon. Then buyers became AWOL and stock prices
slid moderately lower, closing at the lows of the session.
This is not a good sign. The Dow was off 78 points, and the
NASDAQ was down 65 points. We would expect the markets to
sell off over the next couple of days. Clients experienced
in short selling may want to short some of the technology
stocks that have run up steeply over the past week or the
new short sale recommendations on the last page of this weeks
research report. Most short-term traders should consider taking
profits in any stocks that have risen strongly over the past
week with a plan of re-entering these stocks near-term. Long-term
investors should just view this as a market gyration that
comes with the territory. The Stock Traders Press research
department will be issuing fax and email alerts as necessary
during the balance of the week to apprise our clients of any
attractive buying opportunities that arise between now and
next weeks research report.
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