6 stocks for Thursday

Cheer! Santa is
just around the bend.
Feel the swell feeling. Let’s get presents. Let’s get a
rally. Let’s get present to the realistic possibility that this market finally
blows the lid off the top and streaks to a crescendo. That is a hope a wish
and a prayer. The market faded in the stretch yesterday. It did not break
down. It just faded in the stretch. I had a good day and bettered the averages
gaining roughly 1%. Yesterday was the first decent day in the last 5 days. It
is a stock pickers market. The ability to choose stocks that are in rising
trends and executing a winning round is key. It is one thing to have the
ability to pick stocks. It is another thing to actually make money after the
choice is made. That is about having the ability to trade the instrument
getting the most out of it. A good trader has the ability to admit a bad
trade. A bad trade is a loss. A loss taken adhering to the discipline of stage
analysis is actually a good trade. Let’s get into a few stocks favorable and
one lone short that I choose to carry into the year-end.

Teva Pharm

(
TEVA |
Quote |
Chart |
News |
PowerRating) 44.46

The stock is
extended. I am involved in it and it is extended but shows no hint of topping.
It is in the midst of a stunning advance and there is no telling where it
tops. Right now TEVA is extended so buy it coming into the 42-43.50 zones.
That is a good place to pick up shares. TEVA is up close to 50% this year. It
is certainly a market leader and a leader within its group. Place the stop at
39.99.

WebMD

(
WBMD |
Quote |
Chart |
News |
PowerRating) 31.95

It is working.
This stock is working right now. It is happening. A good day yesterday.
Volatile little sucker isn’t it? Been watching this stock? I mentioned it the
other day and am involved in this skinny little sucker. I am in the mood the
suck the milk out of this stock. Every last drop of it. I am involved because
I believe that this stock WBMD has more upside in it and the belief arises
from the evidence shown by its price pattern over the last 5,10,50, and 200
days. That is what the chart tells me. I don’t really care about anything
else. Nothing else matters. Actually it hasn’t yet traded for 200 days and it
is extended but so what. It is rising and persists in its advance. A rise
above 32.50 on a close will enhance buying power as bigger chunks of money
flow into the stock. That is the place to buy it as it gains momentum into the
year-end. Place the stop at 30.69 for a trade. Investors stop the loss at
28.99.

IShares S&P small cap 600

(
IRJ |
Quote |
Chart |
News |
PowerRating) 58.70

Now a close above
60.10 ought to prompt more buying in the instrument. It’s a good way to play
small caps. It’s up almost 9% this year easily outperforming the popular
averages. It will get legs on a rise above 60.10 on a close. That is the spot
to buy it after sticking in a toe right now. This is good for a trade. It
could spike into the first part of the year. It is slightly extended and a
market turn would get ugly so place a stop at 56.99 and 55.49 and sleep
peacefully.

M-Systems Flash Disk

(
FLSH |
Quote |
Chart |
News |
PowerRating) 34.12

I added to it
yesterday after it dropped below 33. I just stabbed at it the way you stab at
a good slice of very rare filet mignon. I picked more up at that level and the
stock turned around at the days end as the market faded. Go figure? Volatile
isn’t it? Told you. It’s a traders delight. A nimble trader scores nicely
playing FLSH. I am playing this stock and will move harder only if it can
cross 34.90 and harder above 35.Place the stop at 31.39.

Applied Materials

(
AMAT |
Quote |
Chart |
News |
PowerRating) 18.15

Like the fool that
I am at times I do foolish things like buying AMAT back after selling it at
the peak the other day. Is it foolish? Perhaps. Time will tell. Won’t it? The
stock is coming into support. I like it down here and what is the risk? Not
much because it came off an overbought condition and ought to hold. If the
market rallies then AMAT angles toward its peak and that is a decent move from
current levels. The near peak it came from is 19.30-19.55. The 50-day line is
17.75. Place the stop right there. At 17.69.

L-3 Communications

(
LLL |
Quote |
Chart |
News |
PowerRating) 74.20

I am having so
much fun with this stock I really am. I covered half the position the other
day under 71. I shorted it back and then some after it crossed 74 on a bounce.
My bet is that it isn’t able to rise above its 200-day line at 75.52. Right
now the risk is low. It is no longer oversold. Now it is right in line to
short. Sell short right now and place the stop above its 200-day line at
75.56. Start covering as the stock moves under 71.50.

There are just a
couple more shopping days left till the big day arrives. The big C. And Santa
is round the bend. I am getting busy right now preparing for his coming. I
will make some lovely brownies and the best hot tea with lemon just for him.
That ought to give the ole jolly fellow a lift so he could soar into the night
delivering his presence.

Jack S. Rothstein

Rothstein Investment Advisory Services, Inc.

3600 Chain
Bridge Road, Suite 200

www.jrmoney.com
— www.wealthcast.com

Jack Rothstein is the
President of Rothstein Investment Advisory Services, Inc. and is a 20-year
veteran stock trader and a money manager.