Last May on a flight to Mexico I couldn’t help but overhearing a couple behind me spending about 30 minutes discussing how well the market has been doing. They appeared to be average investors with who might follow the market once or twice a week.. It caught my attention. When the average investor begins getting excited about the market, it’s time to watch closely for a top, at least in the short term. Within days of that dicussion, the market began to fall off a cliff particularly in the emerging markets (India comes to mind). This brings me to a situation which caught my attention Friday night while enjoying a few at a local German pub. In the bathroom there are often pinups of the latest sports page or interesting current events. NEVER before have I seen a page of stock quotes… not here or in any bar. Is the average investor getting a bit too giddy? Time will tell. What are you seeing out there? It pays to pay attention.
::: Model Portfolio Update :::
I mentioned to premium members in a Stock Watch report last week that I would be hesitant to initiate additional longer term core holding positions at this time and instead would focus on the Quick Strike Profit (QSP) plays that continue to be extremely profitable. Last week, 2 more QSP trades were closed for sizable gains – a quick one day gain of 28% in Movie Star (MSI) and another decent gain in Chinese solar play Canadian Solar (CSIQ) of 17%. Three additional QSP plays were added during the week, one of which is sitting on an 18% profit in just one day. As always I dont just tout the big winners here. There were losses as well. I took small losses in QSP trade Vivo Participacoes (VIV) (-6%) and a short position in Zygo (ZIGO)(-5%). With a few big QSP gains in the portfolio last week, the YTD performance surged nearly 3% to 9.6%, well ahead of the S&P’s 2.3% rise YTD. My current allocation stands at 58% long, 17% short and 25% cash.
::: PinPoint the Highest Ranked Breakout Stocks in Just Minutes Each Day! :::
Want to take your membership to the next level? Premium members who have been following along with buy and sell alerts in the Model Portfolio most likely had a great year in ’06 as the portfolio beat the pants off the market with a 27.6% return… it continues to do the same in ’07 and has now more than doubled since its inception a little over 3 years ago.
In addition to alerting you to the best opportunities on the long side, short opportunities are used to make money during a downturn. To really accelerate returns, a new feature of Self Investors implemented in the middle of ’06 are Quick Strike Profit plays which provide explosive profit potential in just a matter of days. That’s just one of many premium features….
There are literally dozens of breakout stocks to watch every day. How about a database of stocks all ranked according to fundamentals and technicals, complete with pivot points, earnings date, % change from breakout and moving averages, future earnings estimates and relative strength rating? How about Stock Watch reports highlighting long and short opportunities for the coming week? It will save you hours of research every week and drastically improve your results.
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::: Best/Worst Performers :::
– Top 10 Performing Industries For the Week –
1. Recreational Goods: 9.00%
2. Textile Manufacturing: 5.75%
3. Music & Video Stores: 5.60%
4. Pollution & Treatment Controls: 5.35%
5. Silver: 5.30%
6. Copper: 4.90%
7. Heavy Construction: 4.75%
8. Healthcare Information Service: 4.25%
9. Industrial Metals & Minerals: 4.05%
10. Sporting Goods Stores: 3.70%
– Top 10 Worst Performing Industries For the Week –
1. CATV Systems: -9.35%
2. Toy & Hobby Stores: -9.25%
3. Residential Construction: -5.15%
4. Medical Equipment Wholesale: -3.65%
5. Beverages – Brewers: -3.60%
6. Mortgage Investment: -3.55%
7. Major Airlines: -3.45%
8. Semiconductor – Memory Chips: -3.25%
9. REIT – Hotel Motel: -3.25%
10. Regional Airlines: -2.35%
– Top 5 Best Performing ETFs For the Week –
1. Morgan Stanley China (CAF) 5.80%
2. Japan Equity (JEQ) 4.90%
3. Korea Fund (KF) 4.85%
4. China Fund (CHN) 4.75%
5. Ishares Japan (EWJ) 4.30%
– Worst 5 Performing ETF’s –
1. Herzfel Caribbean Basin (CUBA) -8.25%
2. Morgan Stanley India (IIF) -6.70%
3. India Fund (IFN) -5.25%
4. Ishares Home Construction (ITB) -4.40%
5. Chile Fund (CH) -3.45%
::: IPO’s Worth Watching for This Week :::
Again, there are No IPO’s Worth Watching for This Week
::: Upcoming Economic Reports (2/26/07- 3/2/2007) :::
Monday: None
Tuesday: Durable Orders, Consumer Confidence, Existing Home Sales
Wednesday: GDP (prelim), Chicago PMI, New Home Sales, Crude Inventories
Thursday: Initial Claims, Personal Income/Spending, Construction Spending, ISM, Auto/Truck
Sales
Friday: Michigan Sentiment (rev.)
::: Notable Upcoming Earnings Reports I’ll Be Watching This Week :::
Monday: Focus Media Holdings (FMCN), Range Resources (RRC), Ceradyne (CRDN), Nordstrom (JWN)
Tuesday: Tower Group (TWGP), LKQ Corp (LKQX), Western Refining (WNR), CTC Media (CTCM), China Medical Tech (CMED), Wynn Resorts (WYNN),
Wednesday: LHC Group (LHCG), Tenaris (TS), NATCO Group (NTG), Joy Global (JOYG), HEICO Corp (HEI),
Thursday: North Gate Minerals (NXG), Verifone Holdings (PAY), Dell (DELL)
Friday: None
::: Latest Blog Entries – In Case You Missed Them! :::
– SelfInvestors Blog –
1. Today’s Earnings Movers – Break Outs in Vasco Data Security (VDSI) and ANSYS (ANSS)http://investing.typepad.com/tradingstocks/2007/02/todays_earnings_9.html
2. After Market Update – Nasdaq Breaks Out As Small/Mid Caps Lead the Way; Volume Waning on S&P and Dow; Stock of Day – Morningstar (MORN)
http://investing.typepad.com/tradingstocks/2007/02/after_market_up.html
3. Today’s Earnings Movers – Hecla Mining (HL) Near Another Break Out
http://investing.typepad.com/tradingstocks/2007/02/todays_earnings_10.html
4. Today’s Earnings Movers – Break Out in VCA Antech (WOOF)http://investing.typepad.com/tradingstocks/2007/02/todays_earnings_11.html
5. Uranium Miners Moving – Energy Metals (EMU) Gets Cramer Push; Uranerz Energy (URZ) Now is the Better Play
http://investing.typepad.com/tradingstocks/2007/02/uranium_miners_.html
6. Today’s Earnings Movers – Morningstar (MORN), RTI International (RTI) and Commscope (CTV) Add to Recent Break Outs http://investing.typepad.com/tradingstocks/2007/02/todays_earnings_12.html
7. Two Innovative Ways to Search for Investing/Trading Information – ChaCha & TheLion
http://investing.typepad.com/tradingstocks/2007/02/2_innovative_wa.html