Consumer Confidence Rally? What a Joke!
May 27, 2009 by Hot Stocks To Buy · Leave a Comment
It’s such a joke to see the rally on Monday, based solely on a consumer confidence report. Needless to say, this joke will be discovered very soon and the gains will be given back shortly. We continue to remain bearish on the stock market, our advice is to take profit from Monday’s rally and watch the market retract the rest of the week. The hot air balloon is primed to bust in the short term.
No Hot Stocks to Buy!
May 25, 2009 by Hot Stocks To Buy · Leave a Comment
We tried and tried and then tried again, but there’s just no hot stocks that we’d like to recommend at this time. We still like GERN and the sector that they are in but besides that there’s not much on our radar. Last week the stock market had a quick and unexpected rise on Monday. On our Tuesday night blog, we mentioned to our subscribers that we expected the stock market to give back all the gains made on Monday by the end of the week. We were off by 9 points on the Dow and 12 points on the NASDAQ.
This coming week after Memorial Day weekend, we expect the stock market to continue on it’s downward trend. Some important economic news expected this week are as follows:
- 26-May S&P/CaseShiller Home Price Index
- 26-May Consumer Confidence
- 27-May Existing Home Sales
- 28-May New Home Sales
Keep an eye on these reports as they can lead the market higher or lower, depending on how the results are perceived.
As we celebrate Memorial Day, we thank all the troops over seas for courageously protecting our country. We wish them and their families a warm Memorial Day.
Stock Market Correction Over?
May 20, 2009 by Hot Stocks To Buy · Leave a Comment
After Monday’s 235 point increase on the Dow Jones, many would consider the notion that the recent correction that started on May 11th is over. Well that’s a little too optimistic for us. The impressive gains on Monday was a bit unexpected, in our opinion, we can expect the market to give back the gains later this week. Eventually the stock market will not be able to ignore all the negative economic news. As we have been preaching the last two weeks, the stock market is overbought and will retract. Below are some reasoning behind our opinion.
- Job losses have continued to increase
- Consumer spending is down and Hewlett Packard’s recent report of a 17 percent profit drop, 3 percent sales drop, and to top it off, a 2 percent job layoff
- The housing start numbers are at their lowest since 1956, signs that we are still in the heart of a recession
- Oil prices starting to creep past $60 a barrel
With so many reasons to sell, its an anomaly as to why the market is still up. We continue our bearish outlook in the overall market.
As always we wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy
Still Very Bearish on Stock Market
May 17, 2009 by Hot Stocks To Buy · Leave a Comment
Last week’s stock market trading pattern did not look very healthy for the Bulls. It’s starting to look like the market bulls are happy with their bull run from March 9th and are taking their money off the table for the time being. Who can really blame them, after a blistering two months. As more join in on the profit taking this week, we can expect the stock market to continue it’s retreat in the early part of the week. Unless some staggering news hit the the market, we see no good reasons to be buying any stocks at this time.
As always we wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.
Continued Bearish Sentiment
May 15, 2009 by Hot Stocks To Buy · 1 Comment
We at Hot Stocks to Buy hold a continued bearish sentiment on the current stock market condition. Thursday’s jobs report showed rising jobless claims. The results showed jobless claims climbed more than expected to a record 6.65 million. With jobless claims on the rise and retail sales data for April showing an unexpected decline, we remain bearish in the current stock market. With such poor numbers, we expect the stock market to eventually realize the economy is a long way from recovery and act accordingly.
Options are set to expire this week so we expect a volatile session. We could see an early morning rise in the overall stock market and then a pullback near the middle to end of the session.
We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.
TYP Direxion Daily Technology Bear 3X Shares
May 14, 2009 by Hot Stocks To Buy · Leave a Comment
[TYP] Direxion DAILY TECH BEAR 3X Shares - Hot Stocks to Buy Entry Price: $31 - $33
- Risk level: 6
- Profit potential: 8
- Price Target 1 - 4 Weeks: $43 - $45
Wednesday’s trading session did not look very promising for the overall market, those that took our recommendation to add FAZ to their portfolio on Monday is enjoying a nice 25% two day profit. Not bad at all!! Yesterday we added the Exchange Fund BGZ to the portfolio and it’s also enjoying a nice 6% profit. Well today we are still very bearish on the overall stock market and would like to add another Bearish Exchange Traded Fund to our stock portfolio. We are adding TYP to our stock portfolio and expect to see the technology sector fall between 6 to 8 percentage from their recent highs.
At this stage we can still assume that the overall market is taking profit from an extremely profitable two months. We are a little cautious as the timing of the recent market profit taking does create somewhat of a perfect storm for a major market slide.
- Market needs to have a 6 to 8 percentage point correction from a string of 9 consecutive positive weeks.
- May is traditionally the start of a poor period for stocks, hence the term “Sell in May and Go Away”
- Consumers are purchasing less, leading to poor retail numbers.
- Government is running out of ways to pump the market.
- Options expiration on Friday
If the stock market’s slide worsen during the next couple of days, be extremely careful with the stocks you are holding in your portfolio. This slide may end up being more than just a “healthy correction.”
As always we wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.
BGZ Direxion LARGE CAP BEAR 3X Shares
May 13, 2009 by Hot Stocks To Buy · Leave a Comment
- Risk level: 7
- Profit potential: 8
- Price Target 1 - 4 Weeks: $50 - $55
We are adding another Bearish Exchange Fund to our stock porfolio for the short term as the market is looking very grim. Today’s unexpected slump in retail sales data is very disturbing in our opinion. The data confirms what Meredith Whitney has been saying all along that consumers are not buying and this will eventually lead to a bearish market.
In our opinion the proper way to trade this market is to short sell the stock market. Since we only recommend hot stocks, our play would be to buy BGZ, which is a short on the large cap stocks. Becareful though, this is shorting the large caps by 3X, so it’s a little riskier.
As always we wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.
The Pullback Has Begun!
May 12, 2009 by Hot Stocks To Buy · 2 Comments
As expected the stock market is starting a correction today. The markets ended at the day’s low and looks to open lower on Tuesday. Since our recommendation to sell banks on Thursday May 7th, 2009, it looks like several news agency are jumping on the bandwagon. We have a few links listed below to stories that are of interest.
- Jeff Cox, CNBC.COM Stock Pullbacks Then and Now: Is History About to Repeat Itself?
- I Would Not Own Bank Stocks: Meredith Whitney “At a core basis, I would not own these stocks, “Whitney said in a live interview on CNBC. ”Their business models are not going to come back.”
- New York Times - Citigroup: TARP Loans Near $45 Billion Mark
Today’s pullback seems limited to the Dow and financials. We expect to see a correction in the other industries also in the near term. We are expecting to see atleast another 150 to 250 point loss on the DOW and approximately 50 to 80 points on the NASDAQ.
We will be watching the market carefully on Tuesday and will consider taking some profits on the stocks we have recommended previously if “Panic Mode” hits the stock market. There are no stock picks today as the market is looking bearish at the moment. After Tuesday’s close, we will reevaluate and consider adding additional stock picks.
We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.
FAZ - Direxion Financial Bear 3X Shares
May 11, 2009 by Hot Stocks To Buy · Leave a Comment
- Risk level: 8
- Profit potential: 10
- Price Target 2 - 4 Months: $18 - $20 <--Correction
- Price Target 12 months: Strictly recommended as a short term play. <--Correction
- If you are buying on margin, begin to decrease your margin holdings immediately.
- Don’t chase a hot stock market, especially during the late stages of it, there will be buying opportunities down the line.
- With the market being so hot, there are very few stocks that can be considered bargains at this stage. It’s quite possible that as a whole the market may not return to it’s bargain basement prices of March 9th, 2009 but there will be selective stocks that dip to bargain levels.
- If you are truely in love with a stock (which we highly recommend against), sell some covered calls to protect yourself.
- Buy put options on stocks when you think it’s going down.
Since we are Hot Stocks to Buy and not hot stocks to short, we will improvise and buy bear Exchange Traded Funds (ETF). ETFs are basically a portfolio of stocks, bonds or other types of investments that are pooled together to list under one symbol so that it can be traded like a regular stock. We are adding Direxion Financial Bear 3x Shares to our portfolio, symbol FAZ. FAZ represents an intriguing ETF to own as it’s basically shorting the financial market. Since their closing high of $104.07 on March 9th, 2009, FAZ has dropped to a ridiculous low of $4.49 on May 8th, 2009. According to Yahoo’s Finance profile for FAZ:
“The investment seeks to replicate, net of expenses, 300% of the inverse daily performance of the Russell 1000 Financial Services Index The fund will invest at least 80% of assets in securities that comprise the index. It will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. The fund is nondiversified.”
We feel this is the best way to invest in a potentially down market. We are still positive on financials in the long term, but we do see a potential pullback in the near term.
We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.
Tips For Investing In a Hot Stock Market
May 10, 2009 by Hot Stocks To Buy · Leave a Comment
On May 8th, the dow jones stock market ended the week positive for the 9th consecutive weeks. This is the longest positive weekly closing streak since May of 2007. It’s possible the streak can continue for several more weeks but the likelihood is slowly deminishing. After this week’s positive banking news on the stress test results, there are very limited positive news in the horizon that can keep the stock market on it’s course. Remember the last streak ended in May also and May is the month best known for the term “Sell in May and Go Away.” Below we will list a few things you should consider when you invest in a hot market like we have today.
We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.
