This past Thanksgiving week has given us plenty to be thankful for...
SPECIFICALLY OUR BRAND NEW DELL PUTS JUST SURGED THIRTY-SIX PERCENT LAST WEEK ALONE!
PLUS OUR PUTS ON WELLS FARGO (WFC) JUMPED A RESPECTABLE FOURTEEN PERCENT!
And by the looks of both their charts there is a lot more profit waiting this coming week. We've also got two bullish plays that pulled back a bit but both positions still look promising so it's likely we'll do well on those as well.
We've got some great plays lined up and a market that seems to be teetering on a new direction--but which way will it be? To find out let's take a good look at...
WHICH WAY THIS MARKET IS HEADED
Despite the down-spikes in the charts above the volume on Friday was only 4.5 billon shares across all exchanges. This was the LOWEST daily volume in over a year. It does not invalidate Friday's losses but it does mean we could see a nice rebound this week and not the implosion Friday's action implies.
Monday is month end and typically the last day and the first two days of a month are bullish. There will likely be some reassuring news out of Dubai that will counteract Friday's action. However the Nasdaq and Russell will have to hold their ground for any positive sentiment to be effective--they are both teetering at critical support.
The key is to see if the Dubai debt problem spreads. Deutsche Bank said Dubai borrowed more than $80 billion in a four-year construction boom and that boom has gone bust. Commercial property values are down -50% from their 2008 peak. Over 1,000 projects have been halted and construction terminated. Anyone holding a loan on one of these projects is in serious trouble.
Arnab Das, head of market research and strategy for Roubini Global Economics said, "Central banks around the world may have stabilized the financial system but you can't make all the excesses disappear and Dubai had a lot of excesses." Abu Dhabi Commercial Bank has a large exposure to Dubai World and that is not the first problem they have had in the region. Two Saudi Arabian families defaulted on loans earlier this year totaling more than $610 million.
The fact is the news on Dubai World broke on Wednesday but nobody in the U.S. paid much attention. It was only after Europe and Asia crashed on Thursday that U.S. investors decided locking in gains before the weekend might be a good idea. Europe crashed because the majority of loans to Dubai World and the UAE in general came from European banks. Some of those banks were down more than 10% on Thursday rippling out to other overseas markets on Friday. We'll see this week but there is a good chance the U.S. market decline on Friday was just a knee jerk reaction to the two days of European/Asian action.
This week we've got several big economic reports. There are four ISM reports with the national manufacturing index on Tuesday and we'll get the Fed Beige Book on Wednesday with another economic view of the various Fed regions.
Friday is the big event with the Non-Farm Payroll report for November. The official consensus estimate is for an improvement to a loss of -145,000 jobs from -190,000 jobs in October. However, the latest analyst numbers are becoming more bullish. Morgan Stanley is expecting an improvement to a loss of only -90,000 jobs and a +100,000 revision to October. We saw new Jobless Claims fall to 466,000 last week so Morgan may not be that far off. Claims have been declining since March but appear to have accelerated lower over the last month--a bullish sign.
Another bullish sign is retail sales this holiday season--the National Retail Federation's survey, conducted over the weekend, found that 195 million shoppers visited stores and Web sites, up from 172 million last year, but the average spent was about $343, down from about $373 a year ago. For the weekend, the total spending figure is an estimated $41.2 billion.
Also Black Friday was the second-heaviest day in online spending to date in 2009 with $595 million in online sales, comScore Inc. reported today. That's 11% higher than last year's Friday after Thanksgiving. The actual holiday saw 10% higher e-commerce sales, totaling $318 million, comScore added.
The National Retail Federation also announced today that more Americans will go online to do holiday shopping on the Monday after the Black Friday weekend than they did last year. On Cyber Monday, 96.5 million people plan to shop, up from 85 million a year ago, the retail-trade group said citing a Shop.org survey. Nine in 10 retailers also will have special deals and promotions for Cyber Monday, the survey said.
There is reason to be cautiously bullish this week but the Dubai event is not over. Dubai reminds us that there are still problems in the world and that could prompt money managers to take profits. The markets were making new highs last week before Dubai but with a little 'damage control' out of the region stocks could easily spring higher again--the question is...
HOW DO WE MAKE MONEY ON IT?
When the markets were going straight up picking stocks was relatively easy--but in this up and down market it's more important to focus on what is really moving--and in which direction. Which is why for this week we've got both a bullish pick and a bearish pick.
Our bullish pick is on a stock that is growing business in spite of the downturn and investors love it. In looking at the chart jumping on this stock will be like hopping on an escalator--it just keeps plowing higher no matter what the rest of the market is doing. In fact it went up again on Friday while everything else was falling--a strong sign of relative strength. We'll be taking advantage of this relentless move higher with some well placed calls first thing Monday morning.
Our next play is just the opposite--the stock just broke critical support and now looks like a plunge waiting to happen--and it's not hard to see why. The company just lowered their forecasts going forward and investors are selling--the perfect scenario for some fat and juicy put profits!
We've got two great set-ups on a market ready to move--so let's get to it...
For more information on everything you receive with your Pearly Gates subscription click on www.cashflowheaven.com/pg
Monday, November 30, 2009
Monday, November 23, 2009
A SPIKE LOWER ON ABC STOPPED US OUT OF OUR DEC 22.50 CALLS AT A VERY NICE ONE-WEEK FORTY-FIVE PERCENT PROFIT!
This past week the markets hit the top and rolled over...
A SPIKE LOWER ON ABC STOPPED US OUT OF OUR DEC 22.50 CALLS AT A VERY NICE ONE-WEEK FORTY-FIVE PERCENT PROFIT!
That was a great win--but we also ran out of time on our Nike (NKE) puts creating a loss. The stock rolled over big this past week but not far enough or fast enough to save our puts on NKE. Fortunately Well Fargo (WFC) has turned our way and if it's current trend continues we'll have some nice profits to report on that one next week.
The markets are looking toppy after this past week's rise and fall--is this the end of the rally or are we stepping back for another great leap forward? To find out let's take a good look at...
WHICH WAY THIS MARKET IS HEADED
The S&P rolled over Thursday and Friday after hitting a short term high right at 1110. The breakout essentially failed but without a decline below initial support. This is typical when a critical resistance area is broken for the first time. There are always sellers waiting above any critical level--which is what produces resistance. What the index does next is the key.
In this case the spike to 1110 held for three days without failing and without a further advance. That suggests the buyers and sellers were struggling with equal force. The gap down on Thursday morning was dollar related and helped by the downgrade of the entire chip sector---the stalemate was finally broken by external events.
The Nasdaq did not fail at any specific resistance level--instead it got hit by the Merrill chip downgrade and Dell's earnings disaster turning the index around in mid-air.
It was a tough week with Dell's 54% earnings short-fall following a major downgrade of the chip sector by Merrill Lynch on Thursday. BAC/Merrill downgraded INTC, TXN, MRVL, LSI, MXIM, NSM, POWI and MCHP to 'underperform' from neutral.
Underperform is the same as a sell rating. BAC said inventories have been replenished and inventory levels in the supply chain were approaching a surplus condition. The semiconductor sector was knocked for a loss on Thursday and again on Friday thanks to Dell but the actual damage could have been worse.
Volume on Friday was the lowest since Oct-12th and it is probably not going to get any greater this week---Thanksgiving week is typically one of the lowest volume periods of the year. That means any market-moving event is likely to be exaggerated because it won't take much to move stocks with little competition.
Despite the light volume and nearly flat markets on Friday the A/D line was negative with 3741 decliners to 2741 advancers. Friday was the third day of declines and the major indexes slipped back to initial support--but that support did not break. Considering it was option expiration that is a positive sign.
Some Analysts chalked up the pullback to a cooler view of the prospects for the U.S. consumer after a series of reports highlighting ongoing troubles in housing. Those worries could resurface this week with a fresh slew of reports on new and existing-home sales for October and the S&P/Case-Shiller survey of national home prices.
Existing Home Sales come out on Monday and the Case-Shiller index comes out on Tuesday.
The homebuilder sector was also knocked for a loss on Friday after DR Horton (DHI) reported a 73-cent loss---far worse than analysts expected. The company was forced to take a $192 million charge for impairments and write-downs on land contracts. DHI stock fell -15% for the day and depending on how these housing sector reports go it may fall further this week.
The biggest trade this year has been to short the dollar and go long gold and commodities--but is that about to reverse? The dollar refused to break support at 75 on the dollar index and if a short squeeze comes it's liable to be violent. Currencies and commodities can move exceptionally quickly and those traders who don't pull the trigger at the first sign of trouble could take huge losses. Over the long run the dollar will probably fall further but there could be several big reversals where weak players are ejected by violent short squeezes--and that could be starting right now. Any short squeeze in this trade will crush commodities like oil and gold--which we would view as a great long-term buying opportunity.
Gold hit a new high this week at $1153 an ounce and it could go higher if the dollar does not rebound soon. Rob Lutts of Cabot Management said central banks are mulling further investment into gold reserves. He quoted Mexico, Russia and the Philippines as having bought gold recently as well as the 200 metric tonnes purchased by India over the past week.
With currencies devaluing many countries are looking at gold as a reserve instead of the dollar. Lutts is predicting $1350 gold once the IMF announces the sale of the second half of their hoard. They sold half to India and they are taking bids on another 200 tonnes. The IMF said if no country bids for the entire amount they would sell it on the open market. That event could definitely depress prices temporarily while a single buyer would send prices soaring.
This week is holiday shortened and there are no economic reports on Thursday or Friday. All the normal reports have been moved forward making Tuesday and Wednesday extremely busy. The key reports for the week are the Chicago Fed National Activity Index on Monday, GDP revision, the Richmond Fed Survey and the FOMC minutes on Tuesday. Wednesday has the Kansas Fed Manufacturing Survey. The two most important events for the week are the GDP revision and the FOMC minutes.
The GDP revision is now expected to fall to +2.9% growth in Q3 from the initial estimate of +3.53%. Any material decline worse than 2.9% would be negative for the markets.
The FOMC minutes for the November meeting will be released at 2:PM on Tuesday. These will probably provide the most market volatility of the entire week. This is the inside look at what the Fed was thinking when they met to determine rate policy on Nov-3rd. We've already seen the FOMC statement but this Tuesday we'll see the thinking behind it.
We've got a market that has pulled back, a potentially volatile holiday week and a traditionally bullish year-end--the question is...
HOW DO WE MAKE MONEY ON IT?
We've got two plays lined up this week--one bullish and the other bearish.
Our bullish play is on a stock that just announced earnings and they tore the cover off the ball growing the bottom line a whopping 1300% versus the same quarter last year! And this is at a time when their competition is struggling. The stock took off like a rocket right after the announcement but fortunately for us it's come right back down to where it started--and now that it's filled the gap it's ready to launch again--only this time we'll be along for the ride!
Our next play is bearish and it's almost a mirror image of our bullish trade--this company is LOSING market share against its rivals and just announced earnings so bad it had holders dumping the stock in droves--but make no mistake--this downturn is just beginning and we'll be getting in on what promises to be a VERY profitable put play!
We've got two great low-cost, high-potential trades lined up so let's get to it...
For more information on everything you receive with your Pearly Gates subscription click on
www.cashflowheaven.com/pg
A SPIKE LOWER ON ABC STOPPED US OUT OF OUR DEC 22.50 CALLS AT A VERY NICE ONE-WEEK FORTY-FIVE PERCENT PROFIT!
That was a great win--but we also ran out of time on our Nike (NKE) puts creating a loss. The stock rolled over big this past week but not far enough or fast enough to save our puts on NKE. Fortunately Well Fargo (WFC) has turned our way and if it's current trend continues we'll have some nice profits to report on that one next week.
The markets are looking toppy after this past week's rise and fall--is this the end of the rally or are we stepping back for another great leap forward? To find out let's take a good look at...
WHICH WAY THIS MARKET IS HEADED
The S&P rolled over Thursday and Friday after hitting a short term high right at 1110. The breakout essentially failed but without a decline below initial support. This is typical when a critical resistance area is broken for the first time. There are always sellers waiting above any critical level--which is what produces resistance. What the index does next is the key.
In this case the spike to 1110 held for three days without failing and without a further advance. That suggests the buyers and sellers were struggling with equal force. The gap down on Thursday morning was dollar related and helped by the downgrade of the entire chip sector---the stalemate was finally broken by external events.
The Nasdaq did not fail at any specific resistance level--instead it got hit by the Merrill chip downgrade and Dell's earnings disaster turning the index around in mid-air.
It was a tough week with Dell's 54% earnings short-fall following a major downgrade of the chip sector by Merrill Lynch on Thursday. BAC/Merrill downgraded INTC, TXN, MRVL, LSI, MXIM, NSM, POWI and MCHP to 'underperform' from neutral.
Underperform is the same as a sell rating. BAC said inventories have been replenished and inventory levels in the supply chain were approaching a surplus condition. The semiconductor sector was knocked for a loss on Thursday and again on Friday thanks to Dell but the actual damage could have been worse.
Volume on Friday was the lowest since Oct-12th and it is probably not going to get any greater this week---Thanksgiving week is typically one of the lowest volume periods of the year. That means any market-moving event is likely to be exaggerated because it won't take much to move stocks with little competition.
Despite the light volume and nearly flat markets on Friday the A/D line was negative with 3741 decliners to 2741 advancers. Friday was the third day of declines and the major indexes slipped back to initial support--but that support did not break. Considering it was option expiration that is a positive sign.
Some Analysts chalked up the pullback to a cooler view of the prospects for the U.S. consumer after a series of reports highlighting ongoing troubles in housing. Those worries could resurface this week with a fresh slew of reports on new and existing-home sales for October and the S&P/Case-Shiller survey of national home prices.
Existing Home Sales come out on Monday and the Case-Shiller index comes out on Tuesday.
The homebuilder sector was also knocked for a loss on Friday after DR Horton (DHI) reported a 73-cent loss---far worse than analysts expected. The company was forced to take a $192 million charge for impairments and write-downs on land contracts. DHI stock fell -15% for the day and depending on how these housing sector reports go it may fall further this week.
The biggest trade this year has been to short the dollar and go long gold and commodities--but is that about to reverse? The dollar refused to break support at 75 on the dollar index and if a short squeeze comes it's liable to be violent. Currencies and commodities can move exceptionally quickly and those traders who don't pull the trigger at the first sign of trouble could take huge losses. Over the long run the dollar will probably fall further but there could be several big reversals where weak players are ejected by violent short squeezes--and that could be starting right now. Any short squeeze in this trade will crush commodities like oil and gold--which we would view as a great long-term buying opportunity.
Gold hit a new high this week at $1153 an ounce and it could go higher if the dollar does not rebound soon. Rob Lutts of Cabot Management said central banks are mulling further investment into gold reserves. He quoted Mexico, Russia and the Philippines as having bought gold recently as well as the 200 metric tonnes purchased by India over the past week.
With currencies devaluing many countries are looking at gold as a reserve instead of the dollar. Lutts is predicting $1350 gold once the IMF announces the sale of the second half of their hoard. They sold half to India and they are taking bids on another 200 tonnes. The IMF said if no country bids for the entire amount they would sell it on the open market. That event could definitely depress prices temporarily while a single buyer would send prices soaring.
This week is holiday shortened and there are no economic reports on Thursday or Friday. All the normal reports have been moved forward making Tuesday and Wednesday extremely busy. The key reports for the week are the Chicago Fed National Activity Index on Monday, GDP revision, the Richmond Fed Survey and the FOMC minutes on Tuesday. Wednesday has the Kansas Fed Manufacturing Survey. The two most important events for the week are the GDP revision and the FOMC minutes.
The GDP revision is now expected to fall to +2.9% growth in Q3 from the initial estimate of +3.53%. Any material decline worse than 2.9% would be negative for the markets.
The FOMC minutes for the November meeting will be released at 2:PM on Tuesday. These will probably provide the most market volatility of the entire week. This is the inside look at what the Fed was thinking when they met to determine rate policy on Nov-3rd. We've already seen the FOMC statement but this Tuesday we'll see the thinking behind it.
We've got a market that has pulled back, a potentially volatile holiday week and a traditionally bullish year-end--the question is...
HOW DO WE MAKE MONEY ON IT?
We've got two plays lined up this week--one bullish and the other bearish.
Our bullish play is on a stock that just announced earnings and they tore the cover off the ball growing the bottom line a whopping 1300% versus the same quarter last year! And this is at a time when their competition is struggling. The stock took off like a rocket right after the announcement but fortunately for us it's come right back down to where it started--and now that it's filled the gap it's ready to launch again--only this time we'll be along for the ride!
Our next play is bearish and it's almost a mirror image of our bullish trade--this company is LOSING market share against its rivals and just announced earnings so bad it had holders dumping the stock in droves--but make no mistake--this downturn is just beginning and we'll be getting in on what promises to be a VERY profitable put play!
We've got two great low-cost, high-potential trades lined up so let's get to it...
For more information on everything you receive with your Pearly Gates subscription click on
www.cashflowheaven.com/pg
Monday, November 9, 2009
WE WERE STOPPED OUT OF OUR NEW AMAZON (AMZN) PUT PLAY AS THE COMPANY RECEIVED FOUR SEPARATE UPGRADES ON FRIDAY FROM BERNSTEIN, OPPENHEIMER, RBC CAPITA
This past week the markets dipped and then shot higher...
Normally a company retraces somewhat after as big a pop higher as Amazon had but after this many cheerleaders touted the stock it HAD to jump higher.
And that is why we use stop losses. Not we're back to cash with one open play and could use a couple winners this week. Fortunately we've got two extremely promising plays lined up. But before we get to them let's take a good look at...
WHICH WAY THIS MARKET IS HEADED
As you can see both indices made mighty rebounds from what looked like major breaks of their uptrend lines. The SP-500 ended up over 33 points on the week while the Nasdaq launched over 67 points.
This very bullish performance was in spite of some nasty employment numbers on Friday--which gives you an indication of just how bullish sentiment is right now--something we need to pay attention to.
The official unemployment rate jumped to 10.2% with 190,000 jobs lost in October--much worse than expected--and that only counts those recently unemployed and looking for work. The broader U6 unemployment rate rose to 17.5% from 17.0% in September.
The actual number of unemployed workers rose to 30.5 million people. That consists of 15.7 million officially unemployed, 9.2 million working part time or in temporary jobs because full time jobs in their field are not available and another 5.6 million workers no longer looking for jobs but willing to work if jobs were available. In spite of a lot of high hopes it's tough to count on a big economic rebound with more than 30 million people out of work.
The only other report on Friday was Consumer Credit for September. The report showed that credit balances are continuing to shrink at rapid rate with a -$14.8 billion decline in September. Revolving credit like credit cards dropped 12.5% while non-revolving credit like home equity loans fell -3.7%. Balances are expected to continue declining as long as folks stay worried--and that could be awhile.
It's interesting that the individual is tightening the ship in uncertain economic times while the government does just the opposite. This coming week will see another record debt auction by the Treasury with $81 billion being offered which is $6 billion over the last quarterly refunding.
The auction will raise money to pay off $38.5 billion in maturing securities and raise another $42.5 billion in new cash. The Treasury said last Monday that it would need to raise an extra $276 billion before year-end. They also said they could hit the legal debt ceiling as early as mid December. Since the Fed said it had completed its debt purchases this will be the first auction without the Fed as an underlying silent buyer. Without the Fed it would be smart to prepare for higher interest rates--a scenario that the markets won't react to very well.
However the markets have been buoyed by the hope of continuing outperformance in earnings expectations--and that optimism could continue into the end of the year.
With 440 of the S&P-500 already reported 80% of companies beat estimates. Only 14% missed estimates and 6% reported inline. The average surprise was 14.5% over estimates. As of Friday Thomson/Reuters says total S&P earnings for all companies reported came in at a -14.8% decline. At the end of Q3 analysts were expecting a -25% decline. Obviously everyone feared the worst but when the numbers came in better the markets climbed.
For Q4 the expectations are off the charts. The Q4 estimate is so great because most firms lost a ton of money in Q4-2008. If they just break even in Q4-2009 it would be a monster improvement. Every time there is an analyst upgrade to a stock like Amazon, GE or Travelers the S&P estimate for Q4 will change and the atmosphere is starting to look ripe for a year-end rally that makes the fourth quarter traditionally the most bullish. The only two big obstacles could be a very bad Christmas season and a rise in interest rates.
But interest rates may be slow to rise. The markets seem to be ignoring bad economic news. Primarily because bad news means the Fed is going to stay on the sidelines for a long time.
Estimates for a Fed rate hike are now closer to June than January. This means the dollar should continue to deteriorate and with the low interest rates banks can keep piling up the cash from the spread on the loans they do make.
So, if the Fed is on the sidelines indefinitely and stimulus dollars are still flowing then the general consensus suggests the markets should continue higher. Traders believe the worst is behind us and Q4 earnings are going to be in the range of a 150% improvement over 2008 even after they adjust for Q3 guidance--the question is...
HOW DO WE MAKE MONEY ON IT?
We've got two high-potential plays lined up this week and they are both bullish.
The first is on a health care stock that is climbing straight up--and should do even better after the house just passed the Healthcare bill. This is a stock you are going to want to jump on first thing Monday morning for what looks to be a very exciting ride.
Our second play grew earnings a whopping 37% over last year and STILL got whacked lower because expectations were so high. But now the stock looks to be bottoming and when this thing runs higher it can take off like a rocket--a rocket we'll be boarding first thing Monday.
We've got two great plays lined up on a market ready to move so let's get to it...
For more information on everything you receive with your Pearly Gates subscription click on www.cashflowheaven.com/pg
Normally a company retraces somewhat after as big a pop higher as Amazon had but after this many cheerleaders touted the stock it HAD to jump higher.
And that is why we use stop losses. Not we're back to cash with one open play and could use a couple winners this week. Fortunately we've got two extremely promising plays lined up. But before we get to them let's take a good look at...
WHICH WAY THIS MARKET IS HEADED
As you can see both indices made mighty rebounds from what looked like major breaks of their uptrend lines. The SP-500 ended up over 33 points on the week while the Nasdaq launched over 67 points.
This very bullish performance was in spite of some nasty employment numbers on Friday--which gives you an indication of just how bullish sentiment is right now--something we need to pay attention to.
The official unemployment rate jumped to 10.2% with 190,000 jobs lost in October--much worse than expected--and that only counts those recently unemployed and looking for work. The broader U6 unemployment rate rose to 17.5% from 17.0% in September.
The actual number of unemployed workers rose to 30.5 million people. That consists of 15.7 million officially unemployed, 9.2 million working part time or in temporary jobs because full time jobs in their field are not available and another 5.6 million workers no longer looking for jobs but willing to work if jobs were available. In spite of a lot of high hopes it's tough to count on a big economic rebound with more than 30 million people out of work.
The only other report on Friday was Consumer Credit for September. The report showed that credit balances are continuing to shrink at rapid rate with a -$14.8 billion decline in September. Revolving credit like credit cards dropped 12.5% while non-revolving credit like home equity loans fell -3.7%. Balances are expected to continue declining as long as folks stay worried--and that could be awhile.
It's interesting that the individual is tightening the ship in uncertain economic times while the government does just the opposite. This coming week will see another record debt auction by the Treasury with $81 billion being offered which is $6 billion over the last quarterly refunding.
The auction will raise money to pay off $38.5 billion in maturing securities and raise another $42.5 billion in new cash. The Treasury said last Monday that it would need to raise an extra $276 billion before year-end. They also said they could hit the legal debt ceiling as early as mid December. Since the Fed said it had completed its debt purchases this will be the first auction without the Fed as an underlying silent buyer. Without the Fed it would be smart to prepare for higher interest rates--a scenario that the markets won't react to very well.
However the markets have been buoyed by the hope of continuing outperformance in earnings expectations--and that optimism could continue into the end of the year.
With 440 of the S&P-500 already reported 80% of companies beat estimates. Only 14% missed estimates and 6% reported inline. The average surprise was 14.5% over estimates. As of Friday Thomson/Reuters says total S&P earnings for all companies reported came in at a -14.8% decline. At the end of Q3 analysts were expecting a -25% decline. Obviously everyone feared the worst but when the numbers came in better the markets climbed.
For Q4 the expectations are off the charts. The Q4 estimate is so great because most firms lost a ton of money in Q4-2008. If they just break even in Q4-2009 it would be a monster improvement. Every time there is an analyst upgrade to a stock like Amazon, GE or Travelers the S&P estimate for Q4 will change and the atmosphere is starting to look ripe for a year-end rally that makes the fourth quarter traditionally the most bullish. The only two big obstacles could be a very bad Christmas season and a rise in interest rates.
But interest rates may be slow to rise. The markets seem to be ignoring bad economic news. Primarily because bad news means the Fed is going to stay on the sidelines for a long time.
Estimates for a Fed rate hike are now closer to June than January. This means the dollar should continue to deteriorate and with the low interest rates banks can keep piling up the cash from the spread on the loans they do make.
So, if the Fed is on the sidelines indefinitely and stimulus dollars are still flowing then the general consensus suggests the markets should continue higher. Traders believe the worst is behind us and Q4 earnings are going to be in the range of a 150% improvement over 2008 even after they adjust for Q3 guidance--the question is...
HOW DO WE MAKE MONEY ON IT?
We've got two high-potential plays lined up this week and they are both bullish.
The first is on a health care stock that is climbing straight up--and should do even better after the house just passed the Healthcare bill. This is a stock you are going to want to jump on first thing Monday morning for what looks to be a very exciting ride.
Our second play grew earnings a whopping 37% over last year and STILL got whacked lower because expectations were so high. But now the stock looks to be bottoming and when this thing runs higher it can take off like a rocket--a rocket we'll be boarding first thing Monday.
We've got two great plays lined up on a market ready to move so let's get to it...
For more information on everything you receive with your Pearly Gates subscription click on www.cashflowheaven.com/pg
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