Market View == NEUTRAL
Stocks tumbled today and finished sharply lower after a press conference by Treasury Secretary failed to
restore confidence to the markets. Earlier in the day, we got a profit warning from Best Buy saying that the
slowdown is worse than anything they have ever seen. Selling was intense throughout the day and accelerated
towards the end of the session, and then right after the close there was more bad news from Intel warning
about its future revenues only 1 month after reducing its previous estimates. That just shows how hard it is for
even the best companies to predict how much impact the crisis will have on their earnings. The fear indicators
have been creeping up as well and approaching their previous highs from October. Again, our
recommendation is to remain on the sidelines until we see renewed strength in the markets and an indication
that we bottomed at least in the short term.
Read our previous day commentary.
Daily performance of our Model Portfolio.
Recommended Stocks and ETFs (by Sector, Industry, or Country)
1. TECHNOLOGY
AMZN ADBE
2. HEALTHCARE
AMGN
3. SMALL CAPS
UWM
4. FINANCIALS
MA XLF
5. CONSUMER PRODUCTS
AVP
Investing Tip Of The Week
How to buy a stock or ETF? When establishing a new position, never invest all the money you are allocating
for the stock all at once. Even the greatest traders can’t predict the exact bottom and most likely it will go lower
after you buy. We recommend buying half the position or less at first, and then after a couple of weeks, if the
stock is up or down slightly, then buy some more. If the stock moves considerably lower (around 8-10%) after
you buy it, then you should sell. If the stock breaks out (up more than 5%) right after you buy it, then wait for
the first pullback and buy more.
Notes on how to read our Stock Newsletter:
1. We update our letter every night after the market close (except for the trading updates during the day), usually around 23:00 ET or earlier.
2. Our Stocks and ETF recommendations are not meant to be used for Day Trading purposes. We won't try to call the market direction for one
particular day.
3. Our market view reflects our sentiment on the overall market. It can be one of three states: BULL, BEAR, or NEUTRAL. We only recommend
buying stocks when the sentiment is BULL. BEAR means that we recommend selling stocks and staying in cash (or short stocks in some
occasions). When we are neutral on the market, it usually means that the sentiment is changing and we will indicate if it is positive or
negative in our commentary but we don't recommend buying at that point.
4. Our stock and ETF picks will be colored in Black, Red, or Green. Black means that we like the stock and we don’t think it is necessarily
cheap or overpriced. In that case, we recommend buying on light pullbacks. Red means the stock is overpriced in the short term and we don’t
recommend starting a new position. However, color Red doesn't mean we recommend shorting or selling an existing position. Green means
that the stock is at an attractive level to buy, either because it has pulled back to support levels, or it is bottoming out from a steep decline.
5. When we drop a stock or ETF from our list, we usually are recommending that you sell the stock
* Investing in stocks is risky and can lead to financial loss. Past performance is not indicative of future results. We do not assume responsibility
for any profits or losses when trading stocks listed on our website. The information on this website is meant to be used as an additional tool to
assist you in your trading decisions.
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