STOCK UPDATE

At this point, we keep moving higher and higher, so I am more and more cautious. In my opinion, 2 stocks look really good right now:

SUNH - buy all pullbacks, especially towards 14.
UCTT - found support and formed a recent double bottom and it is not too late to jump in.

ALMOST FOURTEEN

This is a reminder to investors to start selling their stocks into this rally as I believe we are almost at the top of this current bull market run. I think the highest we will go is 14,000 on the Dow Jones Industrial Average, and after that we can expect to see a correction of 1,000 points.

Also, investors who want to stay in the market are encouraged to invest in defensive positions and big cap companies.

ON THE CHOPPING BLOCK

Watch out for the following stocks as they are showing signs of topping and a near-term downtrend.

AOB
BRK-B
CBMX
COGO
CYNO
MA
PAY
POT

STOCK ALERT

SUNH (a pick by Darwinian who has been invested in it for years) has recently broke a very important level of $14 on huge volume. It is also breaking out of a semi-cup with handle. This is a good short term investment due to its technical breakout, and its a great investment because as the enormous baby-boomer generation ages, we can expect to see a rise in needs of medical care, including nursing homes as provided by SUNH.

THE DOW NOW

The Dow right now is down 115 points but I do not see this as a bad sign. I think this serves as a small healthy correction, allowing us to continue the long term trend upwards more safely and confidently. Also, we saw a lot of buyers come in and pick up stocks when the Dow was at its low today, showing that people are just waiting for bargains and believe they are seeing bottoms in stocks they like.

STOCK ALERT - VOLC

VOLC looks good as an investment, and as a short term trade since it is breaking out of a very nice cup with handle formation. They are in the medical equipment field, and their future looks promising. Here is the 6 month chart from Yahoo Finance.

14K Gold

It looks like the Dow will reach 14K, indicating signals of an almost definite pullback in the near future. I believe we will see 14K before we see 12K or 13K, but I think we may pull back all the way down to the 12k level if this bubble bursts and people panic and scramble to the exits. The economic news, strength of the dollar, and housing numbers do not indicate that the stock market should rally much higher, yet it continually does. It is like the market has a brain of its own now and does not care about the numbers. Bernake's obsession with inflation and possible rate hikes does not help the investor either. Either way, investors can make money. Stay long on stocks until you see signs of a real correction, and get ready to invest in ETFs that play the short side such as QID and SDS so that you do not have to sit on the sidelines idle during a bearish trend.


As for the CNBC contest, I managed a portfolio based on the MGR Coefficient. I did as well as holding a position in the top 3%, and it looks like I will end the contest in the top 6%. I believe this shows more evidence of the strength of the rating system, since it was able to defeat 94% of the portfolios in the contest. The total number of contestants actually reached a half a million portfolios, which goes to show how many people are involved in the stock market these days. With so much competition out there, investors need to stay focused and keep their eyes on the prize.

MGR COEFFICIENT UPDATE

AKZOY - 2.52 SOMEWHAT BULLISH

NEWEST MGR COEFFICIENT RATINGS

Here are some of the newest ratings of the MGR Coefficient:

KSWS - 2.17 SOMEWHAT BULLISH
NXST - 3.04 NEUTRAL

Also, keep an eye on BVN - it is a very solid company and seems like it may hold above the long term resistance of roughly 32.50.