Blain’s Nightly Stock Picks, April 09 2008
A distribution day for the NASDAQ today as the index nears its 50 day moving average support. Below you will find the support trendline that needs to hold if we want to see higher prices for the overall market.
Gold had a good day today and Commodities have officially made a technical comeback. I have featured several ETFs tonight that bring this trend change to light.
Keep those stop losses tight and don’t be afraid to take quick profits, uncertainty is the market’s middle name.
Nasdaq Composite
2300 is a key price level for the NASDAQ to hold.
S&P 500 (SPY)
This index needs to move higher if it wants to maintain its latest rally and uptrend.
DB Commodities Index Fund (DBC)
A very bullish break past $38 on high volume for this ETF tracking commodities as a whole.
On April 2nd I wrote, “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!”
Let’s see what happens 
.
Market Vectors Gold Miners (GDX)
Perhaps Gold Miners are next? A close above $50.50 for GDX on high volume would be extremely bullish for gold stocks.
This includes stocks such as GG, GOLD, AUY, BVN, ABX, and others.
ProShares Ultra Real Estate (URE)
A break above $37.50 would be bullish for stocks related to real estate such as the Home Builders which I have mentioned prior. Keep a close eye on this ETF.
Companhia Vale (RIO)
Metal Ores are having a great rally right now, and RIO is leading the way. Look for a break past $38.50 to be your next buy point.
Mechel Steel Group (MTL)
Steel is hot, and now its leader is right back where it should be… at all time highs. A huge volume move today as the stock surged nearly 10% suggests MTL is set for another big run alongside its sister stocks.
Steel Dynamics (STLD)
STLD broke out of its latest base last Monday and today closed right back at its pivot area ($35ish) on very low volume. With other Steel stocks being so hot I would bet STLD makes a quick rebound. If entering around $35 use a 3 – 5% stop.
I really enjoy reading your subscription and the website. A kudos job for well done!
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Goooooooo DBA and ABX
Nice job on the article, actually i own URE and it’s made a wonderful comeback in the nice 2 days.
Shorted commodities & wow, it just seems like they just won’t start donwtrending, so I had to let the short go. I’ll be keeping an eye on the indexes, but direct exposure to commodities, wow, what a story. The pricing power is definitely there. GSG is another goood one.