Continued Bearish Sentiment

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.

The Pullback Has Begun!

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.

Tips For Investing In a Hot Stock Market

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.

• 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.

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.

Sell in May and Go Away?

The week of May 11th is going to be an interesting week. The stock market has been screaming hot since it’s low of 6,443 on March 6th, 2009. For the last couple of weeks, many analysts have been calling for a pullback and it just hasn’t happened. Well we’re going to go out on a limb and make our own call. Starting early to mid week, we expect to see the stock market have a pullback heading into options expiration on Friday May 15th. This is typically the start of the term “Sell in May and Go Away.” This may be the perfect opportunity for the bears to fight back as they have been on the losing side for quite some time. Stocks doesn’t go in the same direction forever. Expect some profit taking next week. Or we could be wrong and the rally continues on forever! We’ll find out on the 15th of May.

At this stage we expect to hold on to most of our securities and may consider selling a few stocks in the portfolio if there is any significant action early next week.

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.

No Hot Stocks Recommended Today

The conditions of the banks are just too unstable for trading on Tuesday.  We are recommending a cautious approach to trading on Tuesday.  Signs to look for on Tuesday:

• Early morning sell off and recovery is a good sign
• Early morning rise and sell off is a really bad sign - consider liquidating some of your holdings.
• Flat thoughout the day - is a dangerous sign - consider liquidating some of your holdings
• Down and gradually down throughout the day is an extremely bad sign.  Sell and sell fast!

Consider waiting out until Wednesday for better market conditions.  This is just my opinion, please take it for what it is and make your own decisions when it comes to investing.

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