5 Stocks I’m Focused On Today
Brand New Day
It’s always a brand new day relative to market action. Today starts a new month.
July was a positive month for most stocks. Many more new 52-week highs made in
the month of July. The major averages moved to new yearly highs. The secondary
stocks of the small and mid-cap variety led the way. We all know about the good
action displayed over the last month. Lets get into a few stocks that provide
favorable chances. The following stocks are stocks that I am either involved in
or about to get involved in. Some I may have mentioned recently but am still
highly focused on. In this piece there is time to get into a few stocks and then
it is the current action where I will be focused. Today near the open futures
are up. Markets across the globe are up. Europe still leads and Japan is on the
verge of breaking out. Lets get into the stocks I want to focus on right now.
Wild Oats Market (OATS) 13.90
The stock is in good shape technically. It is in a solid advance and is angling
toward yearly highs. The advance is extended. If the stock has the strength to
negotiate the highs made in April 04’ then the potential gains will be
extraordinary. I have been involved in this stock for a while. It has provided a
decent paper gain. I am not taking any stock off the table right now. I choose
to stay on the current wave. There are no hints of a wipe out. No early warning
signs. The current move comes on the heals of a fine break out the other day.
The break occurred in heavy trade. It has good support in the 12.50 zone. The
50-day line trades at 11.86. Long-term investors can use the 200-day line to
protect but that key point is far south. I would not take it down to 9. So the
stock is extended and can be bought coming in to the 12.50 zone. Use the 50-day
line to stop the loss.
Williams Companies (WMB) 21.49
I like the action is this stock. The energy stocks are still in bullish hands.
The bulls are in charge and the price levels persist to higher points. WM is
trading at yearly highs right now. The stock is up 32% this year and 79% in the
last 52 weeks and it persists higher. So who is the greater fool? If I buy it
today and sell the stock later this year or early next in the mid to high 20â€s
is that behavior foolish? Perhaps. It how you see it that matters. I see it as a
stock that is in a mature advance that won’t quit. That is how I see it right
now and I am involved. So the advance is mature. It is vibrant and full of
positive energy so the maturity of the advance doesn’t really matter. Buying it
here is ok. Be willing to buy it down to 20. Support is sold down to 19. A break
below 19 and it runs into trouble. Use the 200-day moving average for long-term
investors that want to stay in energy related instruments.
ON Semiconductor (ONNN) 5.80
This is a good stock in a good group. That is the reality surrounding shares of
ONNN. So money is growing if the investment was placed recently. The stock is on
a roll after a brutal decline and bottomed out under 3 earlier this year. It has
the potential to challenge the highs made last year. That is close to double the
current value. If the group persists in its current advance then ONNN has plenty
of room to rise to the occasion. The stock is slightly extended right now and
ought to be bought in an area of decent support. That would be 5.25-5. Place the
stop at 3.99.
Wyeth (WYE) 46.29
Wyeth is the best performing large cap drug stock. I have tried most of them
this year and this is the one that offers the best chance to succeed. It is in a
rare advance. Most of the group flounders on the borderline and is suffering
from a lack of investor confidence. Most investors don’t want any part of stocks
like MRK and PFE. The selling pressure prevents the development of a decent
advance. The decline in big cap Pharm continues. WYE is an exception to that
reality. The stock pays about 2% and is up over 8% this year. If the group
catches fire then WYE ought to lead on the up swing. I am just looking at this
instrument specifically and see fairly low risk. Long term investors that prefer
to own large cap stocks and are cautious right now ought to get involved in WYE
coming in to 45 a share. The 200-day line ought to be used to place the stop.
Let it go under 42 a share. The favorable showing price wise favors higher price
points.
Vista Healthcare (VSTA) 20.90
Here is a thin small cap heath care stock that is on the verge of breaking out.
Watch the volume on a rise above 21.15. If it closes above that line it signals
the extension of the advance. The stock is rising after a brutal decline
followed by a lengthy base. If it fails to go topside 21.15 then the current
advance is jeopardized. I would certainly buy more if the stock successfully
negotiates the 21.15 level on a close. Traders can stop the loss under 19.50.
Investors use the 200-day line.
The current market is open and off the earlier highs. It is still positive. Most
stocks are up. I will be back later with more action.
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 and trader.
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.
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