Nightly Stock Picks, March 3 2008
A low volume day today for the markets. It was a roller coaster though with a last hour rally coming in to bring the indices back near neutrality.
Gold stocks had another good day today, and Steel rebounded nicely (MTL led the way).
NASDAQ Composite
Last support area between 2200 and 2250 for this index, will it hold?
S&P 500 (SPY)
Latest support today came at $132.50. The SPY is possibly on its last support line before tumbling back down below $130. Bulls hold your breadth.
Companhia Vale do Rio Doce (RIO)
Not a buy right now but RIO could base out very well over the coming weeks. The 50 MA is beginning to uptrend again and Metal Ores are hot product. Add RIO to your watch list.
China Finance Online (JRJC)
A lot of institutional support for JRJC since bottom in January at $10.02. The light volume close today at $18.95 could make for a great entry point for those looking to go long. You could try half here with a 3 – 5% stop and add to your position as the stock climbs back above $20.
Dry Ships (DRYS)
DRYS is a buy right here at $73.74 with stops as tight as $71.50. I have mentioned DRYS, GNK pair trading numerous times in the past, and one look at the huge day for GNK today only means one thing, DRYS will follow.
Barrick Gold (ABX)
Momentum could take ABX into new high territory this week. Gold continues to be hot, and ABX would be simply the latest stock to make a new move. Volume should be above 12 million on break out day.
ABX was originally featured on this blog at $48.10.
Research in Motion (RIMM)
If you liked RIMM when it gapped two weeks ago to $106, then you should love it here at about $100 even. The stock closed today at its 50 day moving average, and offers a low risk play. You could try half a position here and use tight stops to minimize risk.
Terex (TEX)
I grabbed a few TEX at $67.90 Friday, and I think the stock is a good odds play. My current stop is at $64.90, and I will add to the position with a break back above $69, then lastly again with a break back above $72. (Position sizing 50%, 25%, 25%).
Transocean (RIG)
Nice base building for RIG, next buy point with the next break of $145.
Massey Energy (MEE)
Some readers grabbed MEE this morning at under $39 and ran the stock for some 9% today as it returned to $42. Huge volume day today only suggests higher prices to come for this alternative energy play.
just wanted to say great blog and flow of solid watchlist picks, keep up the great work
Again, very interesting points of interest you have mapped out there. I really am quite interested in DryShips, but they are very, very risky in today’s environment and fundamentally, they aren’t going to cut it. I am going to continue to track performance to see if your theory holds any water.
“Some readers grabbed MEE this morning at under $39 and ran the stock for some 9% today as it returned to $42″
I am wondering when this stock will break out. I had to be content with 9%. Bought back in at $39.9 hoping it returns ti $44