I read that sentiment measures are showing that the public is getting close
to overly-bullish on stocks and that generally is seen not far from a pullback.
It may be a pullback or the end of the bull? The average gain from the 3rd year
presidential cycle low (the 4-yr cycle) the Dow gains about 50%. That would be
16,000 but it may fall short this time. It is now up about 24% from the July
low.
The Dow is overbought and can stay that way but not forever. We have put
in a Fibonacci projection based on former support levels and it shows at 13113.
The Dow Jones World Index. I put in a
projection high and you can see it broke out above it. It though is
in overbought territory.
The S&P 500 is close to a break out. Does it need to break in
order to pull in the remaining sideline, latecomer investors so that
it can pullback? The top in 2000 was 1153 so lets make it 1560 this
time for a top. I was reading that almost 3 times the money was
going into the OEX call options as the puts. Since options
buyers are wrong most of the time the reading indicates a top near
by.
The Nasdaq 100 - the largest market cap companies in the
Nasdaq is showing over bought caution.
In the above chart it is looking overbought at least short term but
in this view using the QQQQ we see now far it is from the
2000 high.
The Russell 2000 is maybe
toying with a possible break out but stochastics is now over 70.
The inverted yield curve is when
(on this chart) it is below 10. The risk of a recession is higher in
the future if the curve stays inverted so a rally here is a good
thing. Recently it failed at resistance.
Oil broke down from the
channel it has been in all this year but a bit too early to tell if
it means much as we need to watch another week.
The US dollar so far in a
bounce from support.
I know most of us expect the Dow to pull back soon but maybe it will
be a temporary situation. This monthly chart showing the Dow to Gold
ratio shows the trend line break and suggests the Dow will now out
perform gold for some time to come. (If the Dow has done as well as
the Value Line in the last 4 years it would now be over 16,000).
Gold trying the little level break again
but we re not yet bullish on gold.
Our 3 Special Situation stocks all pulled back together and so far
have rallied going back up together but I do not expect they
will all run at the same speed as they each have separate
circumstances. Coffee Pacifica as an example has stated that for the
coffee at least from Papua New Guinea that the 3rd and forth
quarters have the highest income do to the growing season. I do not
know when the peak seasons are for Jamaica and Ethiopia but
they of course will also have certain times of the majority of
profits. We know that CFPC wished to move to the AMEX
exchange so must first trade above $2 for 10 consecutive days. The
chart needs to spend some time I believe to have sideways movement
so build a strong base. Of course a large contract news could change
the chart quickly but until an even like that we do not expect a
huge run quickly but to build as sales grow.
NUCON-RF
had news this week. A letter from the Chairman of the Board about
the company and its progress and two press releases of its nuclear
shielding material and the strong interest in Europe. This I believe
is going to be a huge product for them as of now it is the only
replacement for lead which Europe has to stop using in 2 1/2 years.
The NNRF chart also has started to improve as it made a
little double bottom and this may be the end of the correction. I
would not mind to see it go sideways a while but the company has
been making such rapid progress in building a strong leadership team
that things may develop quickly and this is one you want to be
holding. Absolutely.
The company's acquisition
ATOLL is now having an audit by the well known company
2K Audit. It is the Russian government's approved
audit company for nuclear companies but I believe after it there
will have to be a separate company for the USA reporting so this
will take a bit more time for that but it will not delay any company
progress.
Many years ago it used to be that people
had a milk delivery service. The milkman would come a couple of
times a week and deliver your milk and butter. In the truck they had
large blocks of ice to keep the milk cold. We would now of course
think of that as antiquated technology.
Right now
when the major pharmaceutical companies, biotechnology company,
hospitals clinics, doctors etc have to ship/receive frozen drugs,
specimens and so forth they are shipped in packages using dry ice.
Not so much different than the milk man used but colder. It has
though the same problem in that it does not freeze the entire
package equally and it also melts. Cryoport has its process for
shipping items cryogenically so does not use dry ice and can keep
things at lower temperatures for longer times so no need to repack
the package as you often have to do using dry ice. This is an
industry changing technology and we imagine at some point in the
future people will look at the "dry ice age" as the olden days. Can
even imagine Omaha Steaks would convert some day.
Cryoport's move to the OTC from the pinks sheets may
happen quite soon. This last week they announced the formation
of the new company just to handle the international rollout of the
Express ® One-Way Shipper. Obviously as this market is $3.4 billion
in size and Cryoport has reported successful tests we assume that
major pharmas or biotechs were involved as they have said the names
would come later. We do not know when this information will be
released but we absolutely want to be in the stock now as it
has a limited float and when all of it gets bought by stronger hands
like ours then we can control much of it. I would suggest you do not
hesitate on adding to your positions and if there are any intraday
pullbacks to use them to add as well. Remember that this is only the
very early stage and the intermediate term resistance is around $6.
Once it has broken out there it will really start to attract
attention. Read all the press releases and read the
company website.
This is the re making of an industry and we presented it to you
while the naysayers were calling it "only a pink sheet stock". They
failed to do any D&D.
CYRX may have a very
good week ahead as the 62% retrace and break out level held and the
RSI also held above 50. We expect new highs this month. Notice the
bullish Golden Cross. This one may be a life changer.
CFPC had a very
interesting day on Thursday as it pulled back right to the 200-day
EMA which was also our original buy point. It is very common for a
stock to test its break out point but Thursday was a really big move
to do it. All those who missed the first entry were standing buy as
they did not want to miss it a second time and they jumped in and
took it back up about 30% that day.
NNRF had a nice rally on
Friday. The stochastics got to the 20 and this my have been the low.
Regardless of the very short term we expect this to be a very good
month for the stock and you want to be in it not out of it.
This one may be a life changer.
I
want to draw your attention to
HealthSonix, Inc. a company in Canada who is
about to market its Arthritis pain reliving device
enSonix@home that has received an FDA approval, been through its
first production run and is now being
manufactured in its generation two model. They have orders from
several counties and in the USA the first nationwide rollout will
use infomercials and/or the Home the Shopping Network.
This has been in the works for about 6 years
and as the chart shows there was some excitement last September but
it was too early as the company was not then prepared to begin
nationwide sales. They are now working closely with a
number of major pharmaceutical companies. The chart shows the
run up as people are becoming aware that they expect to begin sales
within a couple of months. The CEO told me they have no long term
debt and I am interested enough to buy the stock before the rollout
begins.
There is a separate page made to give you
more information and thoughts about this company.
http://stocktiger.com/hsxiextra0605.php
After the first burst of buying the stock pulled back to test its
50-day EMA. The stock is now at the $0.30 resistance and the next
one is at the $0.55 area or a 70% gain from here.
We have not mentioned the Bradley model in a while. It has a turn date on May
8th and another June 15th. This from our
Moon
page
The 27-day Space Weather
Outlook shows no solar activity expected at 30 or above which indicates a storm
of sufficient size to likely effect the stock market. Only May 25 has a forecast
of 25. The moon now is a
Waning Gibbous.
Economic calendar from briefing.com May 9 is the FOMC policy statement and with
the Bradley model turn May 8 we expect to see volatility.
JUPM over $7.30 or Friday's high of $7.40 may span the red
candle.
A note: The
message board
has picked up a lot of activity lately so if you have not been there
in a while check it out.
UTIW waiting for a break over $25
Would buy TIF over $50.00
CEN over $35.35.
IDSY closed above the
50-day for first time since December with improving volume. Looks
like at least a dollar move may work if volume stays with us.
PRKR over $14.00
TXCO similar to a nice
play last week. A break over $11.34 may take it up the buck.
ZHNE
has a level at $1.55 and then a gap at $1.64
IMAX has finally closed above the
200-day EMA for the first time since last July and volume picked up
on Friday. We would play the move to the gap bottom then watch for a
break out if volume picked up.
MKTX. Nice chart and note
almost all up days have higher volume than down days. Over $17.57.
HOT could be over $71.80.
PFE has three levels
though the top seems unlikely to break out on the first try as it
has been only 5 months since the big gap down.
EVCC may bounce right
here at the 200-day EMA
The following two picture are from a
photo blog
Dandelion
Plasma
That's a full lid for today - Will see you all
during the week.
Check the
Earnings Calendar
on all overnight holds.
Check the current
message board also for other good
stock candidates as there are several there right now.
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