4 stocks to buy and 3 to sell
Lets get to the gist of
it and not waste space. Lets get right into the stocks that are
beneficial to the pocket book. Lets get into a few longs and shorts. Good
instruments for the purpose of making money are:
Level 3 Communications
(
LVLT |
Quote |
Chart |
News |
PowerRating) 2.91
LVLT is up over 14% in the last 5 days. Not bad.
Not a bad call. I am involved and have been for a while and added to the
position I carry into the momentum of it. It has good MO right now. It is better
down around 2.50. It may not get there. If it crosses 3 then it could really get
into a very serious advance. The top of its long-term base is 4. That is a long
weary way and lots of resistance to plow through. The current rally in the stock
may have built up enough momentum to get it there. Perhaps. It is moving in that
direction. That is what is happening right now in LVLT. It is a good stock to be
involved in right now. It is timely. It is still down 14% this year and 8% over
the last year. What does that tell you? It tells you that the advance is young.
The best time to get involved long a stock is at the outset of an advance. That
is the current expression of LVLT. Place the stop at 2.25.
Intersil Corp.
(
ISIL |
Quote |
Chart |
News |
PowerRating) 24.06
The stock cracked the 24 line. That is good news.
Been involved in ISIL for a while. It is a stock I kept because the advance is
in place and is angling toward its old peak made on 1/12/04 at 29.29. That is
just about two years ago. It crossed its 52-week high yesterday. Nice going this
stock! I root for it cause I am involved long. It’s nice to be right. The steady
advance could take a sharp angle to higher price points If this market gets into
a higher gear. That remains to be scene. It is a scene. There is drama around
ISIL. The good news is it crossed higher then the previous near term peak and
the test to get above that level came quickly. The trade was not nearly as
robust as the trade that accompanied the break out the other day when it gapped
open. That gap was filled nicely and the stock could be on its way. It’s in a
nice steady advance. Examine the chart and get inspired by what you see. You
ought to be inspired by the action displayed in this instrument. I am making
money in this stock this year and that is a fact. So I continue you keep it and
trade around it. It is a keeper right now. The tape forces the consideration of
new buys. Perhaps it pulls back a tad. If that occurs then the chance to buy a
stock angling toward its two year high. The big hump is 30. The stock trades at
24. That equated to headroom. It is a simple equation that you are staring right
at that says upside. It is at the 30 range where the selling pressure could end
its run. That remains to be seen. In the meantime it is a good stock to grab
coming into support at 22. Stick a toe in. That forces you to watch it. Then buy
it coming into the 22 zone. Place the stop under the 50-day line for a swing at
21.25
Lawson Software Inc.
(
LWSN |
Quote |
Chart |
News |
PowerRating) 7.87
LWSN is on a roll right now. Most of the gain
that occurred this year is recent. It is currently extended so the best way to
play it is coming into the 7.50-7 zone. That is the ideal. It is overbought and
extended so it pays to be patient when approaching it to buy long right now. The
next pullback in the market may take it down to the 7.50 zone at which time
buying ought to begin. I am happily involved in it right now and will consider
more coming in. It pays to take some off the table if it pushed to higher zones
form current levels. Overly extended stocks snap back. The snap back is just
gravity reigning it in. Grab it after it snaps back and place a stop at 6.75.
Biogen
(
BIIB |
Quote |
Chart |
News |
PowerRating) 41.39
BIIB is a stock that one of the young fellows on
my staff brought to my attention yesterday and I bought it hook line and not
sinker. At least I hope it doesn’t sink. Since when does a word like hope come
up? Hope has nothing to do with it. It matters if it can cross specific
inflection points. If that happens then the stock ought to be bought
aggressively. The chart broke down several months ago in reaction to news about
its failure to get a drug approved for market. It’s back on the rise now. It is
back on the rise above building a decent base off the bottom. Check out a daily
chart and see the brutal and swift decline from a high of 70 earlier this year.
The stock lost more then half its value and has held firm in a base building
process that is now 8 months old. It is on the verge of clearing its 200-day
line. A rise above 43.50 and nothing will stop it. It is worth getting into with
a toe now and more toes after it crosses its 200-day line and the whole body
full force on a rise above 43.50. If you are serious about making money then
focus on this stock right now. Place the stop at 39.75 and 38.20.
Johnson & Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating) 61.20
I am short JNJ. Yes I am. I am short this stock
because it is in decline. It is the only reason to sell a stock short. JNJ is on
the verge of a more serious decline as it settles into support after as few
lousy trading days. I added to the short yesterday anticipating a fall below 60
at which time I will short still more. Hit it while it is down. Nobody is buying
this stock right now. It has terrible money flow. Money is coming out of this
stock right now and that is why it is beneficial to be involved on its dark
side. So we get to experience the underbelly of JNJ and make a few dollars. Sell
JNJ short now and again under 60. Place the stop at 65.60 for an investment.
Infosys Technologies
(
INFY |
Quote |
Chart |
News |
PowerRating) 70.21
INFY is brushing up against its 200-day line and
that is where I have a stop on this. I actually shorted more INFY into strength
cause the risk is low. The risk is low cause the stop is tight. The bet is that
the stock fails to cross its 200-day line and if I am right then it caves back
into the mid 60’s and is thoroughly weaker then it was before. Lets examine the
chart and see why. Gaze at a daily chart and see the action over a stretch of 2
years and see what I mean. A major top has completed on the heals of a powerful
advance. It is in the beginning of a decline and when is the best time to short
a stock? So then sell it short right now and place a stop at 71.10.
Hershey Company
(
HSY |
Quote |
Chart |
News |
PowerRating) 56.40
The candy my kids gave me out of their Halloween
bounty has disappeared. Some one has been pilfering my candy at home. We all
love candy but the stock of the company that makes a ton of it is in decline and
in spite of the love of candy use it to benefit the pocket book so that perhaps
you could buy that much more. The way to make money in HSY is to sell it short.
It is a timely short as it is on the verge of a complete breakdown. Sell it
short more aggressively falling below 55. And again below 54. It is angling to
test the near term lows. It is a site for sore eyes. The chart is a site for
very sore and tired 55-year-old eyes. It pains me to sell, HSY short. I tell ya
it pains me cause I am a candy lover. I admit it. I am out of the closet and
admit to loving candy. Yet I am short HSY. The pain of it all. And place the
stop at 61.25 to avoid not a toothache but an ache where it really hurts.
The futures are down a tad. I will write a piece
for Market watch this weekend and it will be a follow up to the basket of ETF’s
built and involved in. Just in passing the NIKKEI 225 crossed 14k and closed
above that level today. The EWJ is impressive. I am seeking a better way to play
it and may have the answer later next week. Don’t misunderstand EWJ has been a
solid performer but the weighting is not quite what I would choose. I am seeking
a better solution. I am looking up and always have the radar screen open for the
eagles of the world. Looking for a landing. I especially am impressed with
lemony quality of its droppings. Today futures are down and the eagle is
dropping something less then lemony on the rooftops of southern Manhattan. By
the way ESLR is up close to 20% in pre-trading. That is especially encouraging
and will add a pop to my bottom line. Nice way to start the weekend and lots of
golf. Golf. Golf.
Jack S. Rothstein
Rothstein Investment Advisory Services, Inc.
3600 Chain Bridge Road, Suite 200
Fairfax VA 22030
Phone 888-343-4825 — Fax 703-385-7232
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.
Mr. Rothstein also writes Wealthcast, a monthly newsletter about the technical
behavior of the markets. He has been quoted on Bloomberg, CNNFn, the Dick Davis
Digest and the Dow Jones Newswire. Since 1993, Mr. Rothstein also hosted
WealthCast, a radio show in the Washington DC area covering the stock market.