Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

The Daily Stock Report 05 Apr

If you're interested to learn stock market, please see How to Buy Stocks at www.tradestocksamerica....

“Better to be safe than sorry” is a phrase we’re all familiar with. In the game of buying and selling stocks online, this statement is gold. If you’re new to online trading, you’re probably wondering what it takes to trade like the professionals. Look no further than TradeStocksAmerica.com where you can know ahead of time what stocks are best picks, apply proven strategies, and view educational tutorials about online stock trading. Sign up for our Daily Stock Picks Newsletter where you’ll be emailed all of this information and more, including commentaries...in both video and text formats. We’ve included a sample of an older newsletter below for your reference.

You can also sign up for free trial access to our TSA Trading Room where experts converge to teach you proven strategies and techniques to help you succeed in online stock trades. Our proven methods are available in courses and seminars as well. Visit TradeStocksAmerica.com today and see what others are saying about us…we’re an industry leader that helps people like you to trade better and smarter every day!

April 5, 2009 -- Sunday Evening

The stock market looked like it was set to move up until an article about someone influential saying “banking problems are far from over” and that headline gapped that sector down, just when we stopped out on Friday. 

Asia is taking our lead and moving down tonight.  We are not looking for a cascade of selling to occur on this pullback but that could partially depend upon whether the worries in the banking sector re-ignites and if that sector sells off aggressively again.

If we get a new set of news events, an entirely different spin on some problem area with something that is unforeseen, the market could and is ready to react to negative news as well as good news. 

You will note in the stock list notes below that re-entering a short position for banks is being considered.

Oil index closed at $51.20 and looks like it could have a soft pullback with the market too.

Intermediate Trade Positions:   GOLD, Rangold Resources has dropped for 3 days and may give us a good buy entry the next day or two.  Looking for $45 or lower for entry point tomorrow.  Worth a small long position.

RS, Reliance Steel & Aluminum is moving gradually and is worth a small long position.

Here are some more candidates that would be ideal to buy if there is any pullback in them.  We want them to stay “in the channel” without breaking down hard.  For a long-intermediate, we want a nice continuation of the current uptrend without big volatility.  You may not even have to wait for a pullback on some of these:

S, Sprint

MRVL, Marvell Technology.  Ready now to buy small long position.

BKE, Buckle Apparel.  Watch this for a possible buy but if it

ARO, Aeropostale.  Ready now to buy small long position.

DNR, Denbury Resources (Oil & Gas)  Ready now to buy small long position. 

Keep these stocks on your watch list and monitor.

UTX, United Technologies (Swing)

MA, Mastercard

IBM, International Business Machines

TNH, Terra Nitrogen

AAPL, Apple Computer (SWING)

BIDU, Baidu

AMZN, Amazon.com

BMC, BMC Software

RAX, Rackspace Hosting

STEC, Stec (SWING)

SY, Sybase

RIMM, Research in Motion (SWING)

CIEN, Cienna

CREE, Cree Inc

DIOD, Diodes (semiconductor)

SWKS, Skyworks (semiconductor)

UEIC, Universal Electronics

RADS, Radiant Systems (SWING)

SWHC, Smith & Wesson

FCX, Freeport McMoran

BR, Broadridge

GS, Goldman Sachs

MS, Morgan Stanley

WFR, Memc

CMG, Chipotle Mexican Grill (MacDonalds subsidiary,SWING)

VQ, Venoco (low priced oil & gas)

TLM, Talisman Energy (Oil & Gas)

NOV, National Oilwell Varco

PBR, Petrobras

USO, US Oil Index ETF

DBC, Commodity Index ETF

GSP, Total Return Index ETF

SMH, Semiconductor ETF

REPEAT:  Let market pull back before getting too heavy in LONG positions.  It could take several weeks before this bottom is well established.  Stocks that have been the strongest and pull back the least amount with more of a sideways action are the ones to be watching for long intermediate trades. 

Swing Trades:   New Ideas:  none

Day Traders/Intraday stock ideas:  Look for drop and pop again and this whole week should be good volatility for intraday trading.  Since we are holding long intermediate and swing positions, intraday scalping is a good technique to turn to this week.  Stay on the long side on the pop but don’t buy late in day.   Look for good intraday trades in FSLR, ICE, BLK, CME, POT, MON, MOS, AMZN, AAPL, BIDU, USB, WFC, JPM and any high volume, high volatility stocks. 

REPEAT:  Many of you have emailed me with questions about not having the $25,000 to do intraday trading.  You can have 3 intraday trades in a 5 business day rolling period without having $25,000 in your account.  Above $25,000 you can do unlimited intraday trades as long as your account equity is above $25k.  You can have swing trades like we have been having the last 2 weeks and make a smaller amount of money, let’s say $10,000, to build up with swing trades.

Thoughts:  Keep steady, calm, decisive, aggressive.  Have no fear and no greed.  Keep looking at what to be doing next in a calm manner.  Don’t focus on the past or beat yourself up what you did or didn’t do or what you should have done.  Just keep playing the next shot, which in this business your next shot could be just sitting on the sideline.

I am still expecting some sort of substantial rally in the stock market sometime this year mostly driven by the massive stimulus that has already been poured into the system plus the planned stimulus package being proposed now.  Longer term though, in a couple years down the road, no doubt the taxpayer is going to have to pay for such the high debt amounts that the US government (and other countries) have taken on.   So tax rates probably will rise in coming years, interest rates will very likely have to rise as inflation surfaces and likely the bear market resumes sometime down the road.  But we don’t have to be stuck in a miserable cycle like most investors.  With the techniques and approach to the market, we will still thrive.

If you have been uncomfortable shorting stocks, which most people are, try to learn this technique, it will be a useful tool in the coming years.

When I list several stocks from the same sector, like the housing industry for example, don’t short all of them unless you are well diversified and it represents a small percentage of your total stock account (in that same account).

Ticker Symbol

Type

 

Notes

GS, Goldman Sachs

LONG-SWI

Strong uptrend

IBM, Int’l Bus. Mach

LONG-SWI

Strong uptrend

RIG, TransOcean

LONG-INT

Not a strong sector; hold

PBR, Petrobras

LONG-INT

Mild uptrend, missed this bottom; watch and wait.

WFC, Wells Fargo

SHORT-SWI

Looks like it is turning over now; may re-enter short

USB, US Bancorp

SHORT-SWI

Looks like it is turning over now; may re-enter short

GE, General Electric

SHORT-INT

Closed short

PRU, Prudential

SHORT-SWI

Closed last ½ short position last week

HIG, Hartford

SHORT-SWI

Stopped.

CME, CME Group

LONG-SWI

No trade idea; watch and wait

AZO, Autozones

LONG-INT

Stopped; watch.

AAPL, Apple Cmptr

LONG-SWI

Missed this strong run like BIDU run; worth small posit.

BAC, Bank of Amer

SHORT-SWI

Holding short to see if it drops; hold ½ to 1/3 short

SKF, UltraShort Fincl

LONG-SWI

Should start moving up a little.

TOL, Toll Brothers

SHORT-SWI

Should start turning over; hold remaining short.

KBH, KB Homes

SHORT-SWI

Should start turning over; hold remaining short.

SRS, UltraShort RE

LONG-SWI

Broke below support line; awful chart; more downside

USO, US Oil Index

LONG-INT

hold small long position now.

PBR, Petrobas

LONG-INT

Nice uptrend but missed long entry

JPM, JP Morgan

SHORT-SWI

Looks like it is turning over now; may re-enter short

DB, DeutscheBank

SHORT-SWI

Stopped Wednesday; higher high, bullish

WFR, MEMC

LONG-SWI

Still slight uptrend; hold

RTN, Raytheon

LONG-INT

Moving up without us; stopped Friday

ASH, Ashland

LONG-INT

Rec byFast Money CNBC last week; let it drop before buy

MA, Mastercard

LONG-INT

Big move up Friday by 5%; hold

TNH, Terra Nitrogen

LONG-INT

Still on uptrend; hold small long position

BIDU, Baidu

LONG-INT

Looking for some buy entry point soon.

CREE, Cree Inc

LONG-INT

Strong, moving up without us.

FCX, Freeport McM

LONG-INT

Wait for better price before buying

CIEN, Cienna

LONG-INT

Ready to buy very small long position next 2 days

SWI (SWING): 2-7 days INT: Intermediate term position 8 days to several months.  Open Price:  price paid on opening long position or price sold on short position.  Bold notes on table above represent changes from previous day.

IMPORTANT:  The notes in this stock list is how I have been writing notes to myself about stocks for 16 years.   They are general guidelines as to how I am approaching a particular stock and conditions may change during the next trading day that may cause a change in opinion before the next evening report is written.

Thoughts:  Best odds only, be decisive, aggressive, mentally flexible, stay in position size, don’t overtrade and wait a little longer to buy and wait a little longer to sell.  You will find that will make you more money on your trades.  Trade what you see, not what you hope for.  Intermediate and swing trades are really important to have trailing stop losses set.

Don’t trade unless the setup is there for you, then use the charts to tell you when the odds are heavily in your favor.  Don’t force anything to work for you, let the setups develop and then take advantage of that.  Be patient.  Stay in position sizes without letting any intraday trade represent no more than 10-15% of your total account value.  As you build your account, your position size percentage should get smaller and smaller to lower your risk.

Have a great day and I’ll talk to you this tomorrow.

For more tips and to learn stock market, please check out How to Buy Stocks.