What a sad sad attempt by the bulls to create a rally after the Fed meeting. To me, this does not look good. Around noon time I saw the Dow up 30 points I already knew that it was not enough to scare the bears away, in fact, a tiny gain like that was more of a victory for them. By the end of the day, the Dow was down 97 points, and more importantly below my 11,100 key support. I usually short stocks if the Dow stays below this point. Finally, the accelerated drop in the final hour could spell trouble for tomorrow. Think about it- if a rate pause by the Fed + strong earnings from Cisco could not keep the major indexes in the green, what exactly are investors waiting for?
With that said, I’m now bearish on a few stocks:
- Titanium Metals (TIE) is looking weak; despite heavy insider buying by Harold on August 1, investors are not as excited as they were before- this could be dangerous because the next support is around $23.
- Hansen (HANS)- I just went to 7-11 and bought a Monster energy drink for $2.00… it was pretty nasty, tasted like a melted slurpee. I’ll probably short it on the next bounce and try to get my $2 back.
- Blue Dolphin (BDCO) – this stock amazes me. It spiked up again with a huge buy order, then a bunch of me-toos followed bidding the price up. Stock could head back below $5, but I’m still reluctant to short with oil trading above $76.
- NVE Corp (NVEC) – this one was a classic setup (I got this one from Elliot Dole, excellent chartist). It tested the breakout point at $20, but failed sending it down below $19. Next support is $16!
- OMNI Energy (OMNI) – this high flying stock also failed to break $12.00. Next support is around $19.80. I was going to short this a few days ago, but high prices of oil kept me out. Check out the chart.
- 51job (JOBS) – this one is worth keeping on your watch list. Stock is falling very hard., and is just about to test the support at $14.90.
- Garmin (GRMN) – a popular IBD stock has confirmed a new trend… down. Looks like $82 is the best support.
- Leading Brands (LBIX) – looks like $5 is a solid support. A double top around $6.90 was formed in July. That’s still a very large corridor percentage wise, so I would wait for stock price to move a little closer to those levels before making a swing.
- Pozen (POZN) – after getting hammered hard in June, stock has been gapping up, but then has taken a fast u-turn around $10. This stock seems to be dominated by swing traders.
- Infosonics (IFON) – I had a feeling this stock would fall, but this hard? This stock has a long way down. I’ll do a Cramer-like statement: “Infosonics is done… sell, sell, sell. Buy Brightpoint (CELL) instead.”
Here are a few stocks I’m bullish about:
- Halliburton (HAL) – probably the cheapest oil stock. So far it’s staging a nice come back.
- USG Corp (USG) – this company avoided bankruptcy on June 30, and Berkshire Hathaway bought a ton of shares a few days later. The only thing though is that Mr. Buffet got his shares for $40, I got mine for about $46. That’s a 15% difference! But even though I feel ripped off, this chart makes me feel like I may have got a bargain. If USG gets back to managing their company, then stock should cover at least some of the gap.
- FuelTek (FTEK) – earnings just came out a few days ago and since then stock has been on fire! Reading their 10-Q is also very promising, especially the part that says customers are using their products because of EPA standards (ie, the goverment is forcing companies to use their products). Finally, a profitable report by big brother, Foster Wheeler (FWLT), is keeping the industry up. Nevertheless, FTEK has shot up pretty fast, so there could be profit taking.
- MasterCard (MA) – another stock that has been running since their earnings report. Earnings was okay, but I believe it’s a good stock to buy if you want to hedge outside the U.S. slowing economy. Why? Because “Master Card is everywhere you want to be”… in other words, they generate revenues outside the States too.
- Priceline (PCLN) – a new 52-week high soon? It’s summer time, why not.
