October 12th Review

Although we were looking really good this morning, the market really took a negative turn this afternoon. There were several stocks making new 52-week highs today, and that right there should tell you what kind of market we have right now. Going into earnings season this week, we have several stocks just bursting at the seams. Quite truthfully, I think we ought to be ready for some rather disappointing earnings. After all, unemployment is continuing to rise...I think we have too much false confidence right now.

Much like the rest of the market, nat gas, oil, and gold all also sold off late in the day today. I'm getting the feeling that this latest buying spree in commodities has been because of confidence in the markets more than anything else. Investors are starting to feel that the markets are just destined to keep breaking out, I think. They are getting this feeling because we have had several pullbacks, but nothing too big as of yet. It just may take a bad earnings season to get this false notion of security out of peoples' heads.

Since I failed to go over new picks for today yesterday, let's get right to that tonite. CLWT...the last three days for this stock have been crazy. The price has exploded right along with the volume. Give it a day or two, and wait for that green to red action. ASTC...this stock spiked a few weeks ago and then backed off, but finally it has made its way back up to around the tops. If we move over the $3 mark tomorrow, I'd love to buy this stock on the backs of some good earnings from Intel or the like. HILL...similar pattern to CLWT, just wait around for that first sign of negativity and have shares reserved. The TRLG/LULU arbitrage play continues to work...let's just hope LULU announces some negative earnings this season and that will help us even more.

MK