5 stocks poised to move in this market

Scrambling as mark ups take
place to close the quarter.

Get ready for a wicked 4^th quarter. It
won’t begin in grand style. October may be a weak month and a repeat of last
year may prove to be the old bull’s last encore as a bear market comes into
existence. It will be a cyclical bear within a secular bear macro environment.
Japan is certainly into a new bull market. Japan is down just slightly on the
day as mild profit taking sweeps up the excess. Europe is up across the board.
The NIKKEI 225 is up 18% this year. EWJ the instrument that I chose to play
Japan is up 13% this year. Most of the gain occurred in the last month and
change. It broke out in August on the 9^th day. Quite a move. It’s
up over 20% since then and over 5% in the last 5 days. Huge move. The stiff
resistance that the NIKKEI 225 will encounter is up in the 14k zone and it
appears to be sprinting toward that sticking point. EWJ’s break out is
stunning. Check it out.

 

Today I will get
into a few stocks that appear timely. This weekend the monthly edition of
Wealthcast will be written. Lots to write about as lots of opportunities long
and short are presented. This morning I will get into the stocks that I am
focusing on. The market will do its thing today as the scramble to get it just
right up till the closing bell takes shape and shapes the next week or so of
trading. October is earning season and a set up month. October sets the tone
for the year-end. November and December are vibrant. It is critical to be
positioned in the right stocks within the best sectors to exploit the rally
off the October bottom. We may have seen the low for the year. SPX bottomed in
April. It was the worst April in two generations. April is typically a good
month. This year both January and April were lousy. Last year the market
bottomed in August and tested in October. This year it bottomed in April and
tested in August. The SPX now trades above its 50-day line. More about all that
later. Lets get into stocks right now.

Autodesk
(
ADSK |
Quote |
Chart |
News |
PowerRating) 44.84

This is a superb
performer. The advance is mature. It is still happening. No sign of a top in
formation. ADSK broke out the other day as it crossed its near high in average
trade. It got over a hump. The break out actually occurred on 8/19.It
subsequently formed a hump. Now it crossed above that ugly little hill and is
persisting. ADSK is up over 18% this year and 80% over the last 52 weeks. A
leader. Caution that the advance is mature. It is extended as well. Use the
50-day line as a guide.

Cardinal Health
(
CAH |
Quote |
Chart |
News |
PowerRating) 63.16

A good stock to be
involved in right now. I am. The action is quite good. It’s a good stock to be
involved in right now. The decline experienced last year was brutal. Those
days are over. The stock is angling higher after forming a solid base. It is
better at 60-61. The risk is almost zero at that point. Why is that? Why is
the risk low in a stock like this? Certainly it may drop to point’s way below
that zone. It has. It bottomed at 36.08 in 2004. It moved on a bounce to
adjust its oversold condition and built its base off that. That is what
happened. What is happening now to the stock is a new break in the pattern as
it angles higher. It trades tightly above its key inflection points so the
stop is placed under its 200-day line at 57.59. Traders may use 59.69. So if
it is purchased at 60-61 on the bulk of the position then the risk is
controlled and minimal.

Evergreen Solar
(
ESLR |
Quote |
Chart |
News |
PowerRating) 8.88

I am involved in
this gem. Flexibility. I should have never sold it in the first place.
Hindsight is a lousy way to approach life. Forget about it. It is a brand new
stock in the portfolio right now and will be treated as such. The stock is up
103.2% this year. That is the gist of it. I will write more extensively about
this stunning leader over the weekend in Wealthcast.

Abbott Labs
(
ABT |
Quote |
Chart |
News |
PowerRating) 42.09

ABT is oversold.
What a decent short this turned out to be. I will likely cover. I will watch
it and short it again in a rally to the 44-45 zones. That is the sweet spot
for shorting this stock at this moment in time. I will likely cover the
remaining shares today and book a solid gain.

Guitar Center Inc
(
GTRC |
Quote |
Chart |
News |
PowerRating) 55.27

GTRC is decent. A
decent short. It is just at the outset of a decline. When is the best time to
get short and begin a position? The best time to do that is at the outset of a
decline. GTRC expresses a declining price pattern. It had a solid advance that
matured and ended and the subsequent top formed is complete. I invite you to
check out the chart and see for yourself. Proof is in the pudding, isn’t it?
Short it up to 56.50 and place the stop at 59.22.

Jack S. Rothstein

Rothstein Investment Advisory Services, Inc.

3600 Chain
Bridge Road, Suite 200

www.jrmoney.com — www.wealthcast.com