Thursday, April 28, 2005

"Turn away..."

(Pre Scricpt (Instead of Post Script) The graphics program I use is not working right now. I only got 1 chart to work so far. I will upload the rest when the program is working...I hope that is soon. It is very frustrating, but I guess I don't pay anything for this blog format or the graphics program.)

"Turn away...I'm hideous!", says the market.

It sure is getting ugly out there!

So, here is the Soothsayer to the rescue...

Boeing (NYSE: BA)

Click to Enlarge Weekly BA Posted by Hello

Investors in Boeing should think about getting out on this recent strength. I know that it is probably one of the only holdings you have that is working right now, but I believe you should follow the mantra of get out on strength.

As you can see by the weekly chart above. BA is coming up on some multi-year resistance levels. I don't know about you, but I'd be very worried about this holding. BA has been rising on decreasing momentum and the $61-$63 price range could be all she wrote for this guy.

If you want to remain safe and not sell to rashly, you could wait until BA breaks below its 50-Week SMA. You can see by the chart above that Boeing has found support around this level many times.


(Insert Weekly Chart)

It seems that TASR is going to be testing its recent support break. Look to the volume to know it TASR has found a bottom at $7.33 or if it is heading lower. My guess is that TASR will meet quite a bit of resistance at the $12.00-$12.60 range, but it is only a guess.

Ford (NYSE: F), General Motors (NYSE: GM), Daimler Chrysler (NYSE: DCX)

Yes, I am still holding out hope for "The Big Three".

(Insert Ford Weekly)

(Insert General Motors Weekly)

(Insert Daimler Chrysler Weekly)

The strongest chart out of all three was Daimler, but DCX had a breakdown last week and it continued this week as well. DCX is currently sitting right below its 200-Weekly SMA and it's not looking to good.

Let me make this clear though, I am not recommending purchase of any of these auto manufacturers. I am patiently waiting for them to bottom on increased fear that they will never come back. Then, like the good long-term investor I am, I will swoop in and gobble up many shares. I will let you know when I believe it is time, but it is definitely not now. Right now we sit and wait.

McDonald's (NYSE: MCD)

(Insert Weekly Chart)

I recently recommended McDonald's in as a purchase candidate. You can read my recommendation here along with some other opinions from other investment bloggers.

McDonald's, although being down a little from when I made my recommendation, is acting very well (technically speaking). MCD has recently tested its breakout point from the massive inverse head and shoulders bottoming pattern. If MCD's can hold here, the chances of MCD shareholders retiring a little earlier is definitely in the cards. Looking at the stochastics I get the sense that this is a very likely possibility.

It's tough to find diamonds in this environment, but not impossible.

General Electric (NYSE: GE)

(Insert Weekly Chart)

As you can see from the weekly chart of GE above, GE is still in an upward trading range. Look for a breakdown, but it is my view that Wall St. will try many of their tricks to keep this stalwart from falling on hard times.

Intel (Nasdaq: INTL)

(Insert Weekly Chart)

I don't know how, but Intel is holding up magnificently in this environment. Look at it just clinging to that uptrend line. If only it could break above those pesky SMA lines. Of course traders could look to play between the support and resistance lines, but my long-term compatriots should definitely wait to put their hard earned money to work after a strong break of the downward trending line...that could take a while. Patience is the name of the game.

Merck (NYSE: MRK), Pfizer (NYSE: PFE)

(Insert Weekly PFE)

(Insert Weekly MRK)

I have to say something about the big pharmas here. There are some who are jumping on this bandwagon. I say stay away. Take a look at the weekly charts I have posted above. Sure, they have had recent strength breaking out of flat top triangles, but look at the main trend...DOWN...DOWN...DOWN! Until either can break free from those downward trends I'm not going to touch them. For MRK that's around $38 right now and for PFE the mark to beat would be around $34/share.

KOS Pharmaceuticals (Nasdaq: KOSP)

(Insert Weekly Chart)

I wrote a report on this company and it was posted on Bill Cara's blog. It has since appreciated around 50% or so. In this environment that is darn good! If you are a shareholder of KOSP, you might want to think about taking profits least some...for me...please.

Remember sometimes the name of the game has to revert to selling into strength. KOSP has stalled here and might be looking to take a little break. Maybe not, but maybe so.


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