Check Out This Cyber-Security Penny Stock
Market Trend: Meandering
Market Outlook: Looking for a bounce early in the week
David’s Pick: Off (Happy Birthday!)
Peter’s Picks: Cash,
(
DYTK |
Quote |
Chart |
News |
PowerRating)
Reader’s Pick:
(
NGAS |
Quote |
Chart |
News |
PowerRating)
Navarro’s Broad Market Outlook:
Where’s the Catalyst?
In mid-January we counseled going to cash.style=”mso-spacerun: yes”> Last
month, we counseled taking some of the cash and shorting the bond market.
So far, so good. So Mr. Bull, what might
be the catalyst to propel this market on its next leg up?style=”mso-spacerun: yes”> Here’s the damned-if you-do…paradox.
Good earnings
simply scare the market into retreat over fear of Fed rate hikes.
Mixed or bad economic
data such as falling consumer sentiment and disappointing factory production
only cause the market to fret that stocks have been priced to over-perfection.
How now, Mr. Bull,
do tell me about all that cash pouring into mutual funds ready to ignite the
next rally. Then, I will remind you that
we are awash in US dollars that have been recycled by the Chinese and Japanese
back into our capital markets as they bloat our trade deficit.style=”mso-spacerun: yes”> That recycling could disappear at any point
that foreigners think that it will be riskier to lose money on a weakening
dollar than to quell political unrest at home by keeping everybody employed
making stuff to sell through Wal-Mart to the American masses.style=”mso-spacerun: yes”>Â
And let me speak the
unspeakable: What are the odds of a terrorist attack as we get closer to the
November presidential election? This
strategy worked sickeningly well in Spain to topple the hawks — so maybe we will
get it here.
OK.style=”mso-spacerun: yes”> So I’m bumming you out.style=”mso-spacerun: yes”> But it’s just very hard to get really excited
about the market as we approach the “sell in May and go away†phase of what
looks to be a tiring and topping-out market.
But rejoice!style=”mso-spacerun: yes”> Once you figure out that it’s just as
easy to go to cash or get on the short side, then you can feel bullish again —
at least about being bearish.
 
The Week’s Macro Data Market
Movers:
Earnings Season
earnings season is likely to overwhelm any mere economic data.
Still, the Index of Leading Indicators is likely to signal some softening
on Monday — and only the bond market will rejoice.style=”mso-spacerun: yes”> The Fed’s Beige Book is always interesting.
And check out those jobless claims for any clues to the ongoing dissonance in
the jobs data.
David’s Pick:
Continue to Reiterate–Long “RRPIX†(Bearish Bond
Fund)
This fund will allow you to take
advantage of this eventual trend reversal in bonds and rates.
It provides 125% the inverse of the daily price movement of the most recently
issued “Long Bonds.â€style=”mso-spacerun: yes”> The fund invests in derivatives (futures,
options, etc.) to accomplish the funds strategy.style=”mso-spacerun: yes”>
P.S. This can be put into retirement accounts!style=”mso-spacerun: yes”>Â As always, control
your risk by following money management guidelines which are in line with your
level of risk tolerance.
style=”mso-bidi-font-weight: normal”>
style=”FONT-FAMILY: Arial; mso-bidi-font-style:normal”>Peter’s
Picks: DYTK, NGAS
Cash remains king but for you
ultra-high risk penny-brigade junkies, check out Dyntek
(
DYTK |
Quote |
Chart |
News |
PowerRating).style=”mso-spacerun: yes”> This cyber-security stock is currently in
play, with decent technicals.Â
Here’s an excerpt from their Website:
DynTek’s solutions include
comprehensive IT security consulting, detection, prevention and mitigation
strategies and solutions; document management; staff augmentation; storage
solutions; and complete network, server and desktop management and support. Each
of our offerings incorporates an approach and methodology derived from over 18
years of experience in the assessment, design, implementation, management and
support of dynamic technology solutions. For more information, visit style=”BACKGROUND: yellow; mso-highlight: yellow”>www.dyntek.com.
style=”mso-bidi-font-size: 14.0pt; mso-bidi-font-style: italic”>
Also,
style=”mso-bidi-font-size: 14.0pt; mso-bidi-font-style: italic”>a reader
recommended Daugherty Resources
(
NGAS |
Quote |
Chart |
News |
PowerRating).Â
Here’s what he said: “NGAS selling for about 6.30 is on a roll,
having reinvented itself from a teeny, tiny company scrambling for capital to
develop its natural-gas-drilling partnerships to (wonders of growth!) a tiny
company whose glowing success of late has brought in the money it needs. Their
Kentucky drilling partnerships are expanding as fast as they can sell them,
revenue and earnings are leaping and jumping, and their natural gas reserves are
climbing enormously. Daugherty’s news announcements from the past two months
tell much of the story. Mid-May will bring what should be stellar Q1 earnings,
and I expect an announcement prior to that touting their continually increasing
gas reserves.”
If you
have a favorite macroplay or stock you would like us to consider in this column,
send an e-mail to href=”mailto:pnavarro@uci.edu”>peter@peternavarro.com
or go directly to href=”https://www.peternavarro.com/”>https://www.peternavarro.com.style=”mso-spacerun: yes”> We’d love to hear from you.