Blain’s Nightly Stock Picks, April 02 2008
The market finally claimed higher highs and several groups have started to make their moves to lead the latest rally.
I am talking of course about Alternative Energy, Steel, and Oil/Gas Exploration & Production. Technology as a whole has done nicely as well with AAPL and RIMM really leading the way with nice rallies.
It is very easy to get excited about the new found market optimism, but we are not out of this yet. Stick to top performing groups (examples listed above) and do not be afraid to take profits. The market can change course twice as fast the downside.
NASDAQ Composite
Finally we see a set of higher highs. Next key target is 2450.
S&P 500 (SPY)
Higher highs for the S&P as well. Next target for the SPY is $140.
Range Resources (RRC)
RRC today broke past $65.53 and is set to move higher from here.
Other stocks in the same group (US Oil&Gas Explorations and Production) that you need to know: SWN, DVN, CRZO, SGY, FST.
Research in Motion (RIMM)
RIMM reporting earnings today after the bell is is trading at $121 after hours. The stock looks poised to move much higher out of this latest base.
DB Commodities Index (DBC)
DBC is the ETF tracking commodities, and I show it here to let you know Commodities are NOT done yet. If we can see a push past $38 and claim higher highs then watch out!
The latest support came at the 50 day moving average, a healthy and bullish sign. A close below this line ($35) on high volume would be bad news for this ETF.
Steel Dynamics (STLD) (AKS, MTL)
I mentioned STLD all the way back at $28 (adjust for recent 2:1 split) and the stock has yet to slow down. Next buy point is a break to new highs above $35.30.
Other stocks I like in this group: AKS (recently broke out again), MTL, and MT. Don’t underestimate the power of steel…
First Solar (FSLR)
Today’s high volume move past $240 tells us that FSLR means business and is looking to possibly test all time highs here in the future.
Other stocks in this high flying group (alternative energy) you should know: LDK, SPWR, and SOLF.
Bard (BCR)
Bard fell out of its horizontal channel but the next day on high volume jumped back in, a bullish sign. Watch out because BCR is looking very eager to make a break past the $100 price level.
Intuitive Surgical (ISRG)
Another heavy volume move for ISRG as more institutions step up and buy shares. The stock is up nearly 40% since March 10th, 2008.
I enjoyed seeing that good news from RIMM. Apparently, you like the steel companies, but you did not mention US Steel (X). What is your take on them?
Also, on Intuitive Surgical, I bought in @ $299 early march. What do you think would be an appropriate sell point or do you think this sucker is going higher?