6 longs I like now

I will
just examine stocks to get into on the long side this morning.

Markets are
rising across the board across the globe. The NIKKEI 225 leads. Led all year
and is rallying into the stretch run. Japan rose over 2% last night. Its
largest one day gain this year and lifts the NIKKEI 225 to 15,738. That is a
big move since the break out last August just above 12000. Look at it now. I
am involved in EWJ. Check out the chart. I am not buying Japan right now. I
won’t chase it. I am happily involved on the long side. That was a good call.
Occasionally a winner is picked. In this case it is an entire market. The
NIKKEI 225 is up close to 37% this year while the DJIA is down .04%. Numbers
just never lie. They just tell the truth. Perhaps our major market (SPX) will
crank into the home stretch as futures point sharply north. The level the SPX
must climb above is 1273 on a close. The bulls will get into higher gear if
the corresponding popular averages confirm with the COMP closing above 2278
and the Dow managing to cross 10985. That happening, and it could occur this
week, will compel ole Santa to pay a visit to ole “Broad and Wall”. That is
what to look for right now going topside. If the averages fail to climb above
the near term peak made the other day then the market could slump. This
morning the futures angle in the direction of those near highs and it appears
a test of the peak is the play for the week. The markets lost ground last
week. The portfolio I run gained ground and after being 100% cash going into
Thanksgiving I am currently 120% long. I am 20% short. I am currently net long
roughly 100%. If this market does manage to rally through the old highs then I
am likely to be near 200% long into the New Year. Let’s get into a few longs
that appear ready to move to higher levels.

Adobe Systems
(
ADBE |
Quote |
Chart |
News |
PowerRating) 35.60

This stock is in good shape technically. It is better priced at 34. That is
the best level to pick up shares right now. A market pull back and it is
likely to hold support at that level. I am involved and am not inclined to
chase anymore up here. If the intention is to build a position in this stock
then it is better to patiently wait for it to come to you. Be in the drivers
seat and in control.

Aetna Inc.
(
AET |
Quote |
Chart |
News |
PowerRating) 98.68

Medical delivery is ramping. Examine stocks in the sector and see for
yourself. Its best to be long instruments that are in an advancing stage and
AET is in a gorgeous advance right now. Let’s examine a daily chart for a
minute and see what the pattern tells. It tells of a stock in the midst of an
advance all coming this year. AET is up over 58% this year. It is up over 3.3%
in the last 5 days. It is easily beating the market and is performing at the
top of its class.

Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) 69.65

I am
involved in BA with a toe. I placed a toe in the water when it crossed 70 the
other day and being a glutton for punishment I am likely to build on the
position pyramiding after it closes above 70.20. That is the play concerning
BA. If it crosses 70.20 on a close then the stock will rise to higher zones
and it pays being involved. Place the stop at 66.49 for a trade.

Marsh McLennan Co
(
MMC |
Quote |
Chart |
News |
PowerRating) 32.64

Why am I involved in this
stock right now? I am serious about making money! I am involved in MMC to make
money. The odds favor higher price points. The stock is technically healthy.
It trades above all key inflection points. MMC could rise another 10 points in
a good market. No question about that. Check out the chart and see the base
built after the brutal decline that followed the scandal, which caused the
stock to get nailed. That is old news and time has enabled a good base to be
established and the current move in the stock is coming on the heals of that.
The risk is low and the reward satisfying. Place the stop at 29.99. Buy coming
into the 31-32 zones.

Sirius
Satellite Radio
(
SIRI |
Quote |
Chart |
News |
PowerRating) 7.87

I got back in after it crossed
7. I have a nice position and am favorable toward adding to it above 8. SIRI
has 10 written all over it. It is in the cards. Howard Stern will not bomb. He
will be outrageous. People enjoy watching entertainers display their crap in
public. Stern is good at it and people will pay to listen. They will be
profitable someday.. That is really not important. That is just bullshit story
telling and its best to never fall into the trap of listening to a story.
Focus on the reaction to the news. That is the best way to handle any play.
SIRI is getting good play right now. It is moving to higher zones and is about
to take out the very top of its base. It could challenge 8 today. If it closes
above 8 then I am inclined to add to my position. Place the swing stop at
6.69. Short-term traders may keep it tight around 7.19. SIRI is up over 10% in
the last 5 days. So it is sprinting right now. The volume is better than
average. It’s a good stock to be involved in right now.

TEVA
Pharm
(
TEVA |
Quote |
Chart |
News |
PowerRating) 44.48

On a roll and extended. I am
involved and won’t chase. It is good on a pullback into the 42-43 zone. Place
the trading stop at 41.99.

The current market holds steady on this Monday in the middle of
December as the autumn gracefully gives way to old man winter. Well the year
is coming to a close and am glad to wish it farewell. It is time to look ahead
to 2006. It could be a decent year. It is a set up for a super year in 2007.
The Fed will stop raising interest rates next year. They will actually begin
to cut rates in the second half of 2006 and the stock market will like that.
The year 2006 is the set up for a powerful move in 2007. The next several
weeks will be spent fine-tuning the scenario and building and adjusting the
portfolio to get the most out of it. Today’s piece focused on long only. In
the coming months shorts will play a larger role regarding performance. By the
way, in case you forgot, the Fed meets this week and it is the last meeting
chaired by Alan Greenspan and it will be interesting to listen to the language
after the ¼ point hike this afternoon. Futures on Fed funds indicate a
tightening up to 4.5-4.75%. It means another 2 or 3 hikes into the 1^st
quarter of next year. Look for a firm open today as no surprises are in store
relative to the fed. Its rally time.

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.