STOCKS STOCKS AND MORE STOCKS

GRMN keeps hitting new 52 wk highs, and this one looks like it can lead us through a bad market as it has been performing well while the markets have been getting beat up. Most importantly, this stock was graded as the #1 stock on the MGR Coefficient when it was $58, now $73.75 and still going strong. I would not be surprised to see this stock trading at $85 by the end of this year.

Also on a general note, it looks like playing stocks in the Nasdaq (SUNH, UCTT, CYTR, NVEC) is the safest bet as this is the most oversold index, especially on a long term basis.

Here is a description of these stocks:

NVEC - This company has patents and technology that can propel it and destroy the competition in the coming years. Trading at about $32, this stock is a good buy.

CYTR - RNA is the "new thing" in science, and a huge breakthrough. When I was in college, I was taught RNA was not too important, and now the opposite is true. CYTR's board of scientists/doctors is led by Craig Cameron Mello. He is one of the laureates of the 2006 Nobel Prize for Physiology/Medicine (the other laureate was Andrew Z. Fire), for the discovery of RNA interference. This information was obtained from http://en.wikipedia.org/wiki/Craig_C._Mello where more can be found about Dr. Mello.

SUNH & UCTT - descriptions can be found in recent blogs

TWO THUMPS UP

In these crazy markets, there are only two stocks that I can really give "two thumbs up": SUNH and UCTT.

SUNH should pop soon as the institutions will be moving into low-beta and non-cyclical industries to be safe from a weakening economy and stock market.

UCTT should pop soon because Intel got upgraded last week, AMD upgraded this week, and the SMH (semi-conductor holders) hit a 52 wk high this week. This is all really good news for UCTT and I think it is coiling like a spring right now and getting ready to pop.

CLRK GETS BOUGHT OUT!!!

As perfectly predicted by Darwinian, not only did CLRK move from $17 in March 07 to $34. That is a 100% move in 3 months!!! CLRK was initially moving on institutional buying in the last several weeks, and now has been bought out by Phillips for $34 a share.

THE RAGING BULL....OR IS IT???

It looks like we are now possibly back into the realm of the bull market. Like Darwinian was saying, there were still too many bears last week where the "end" of the bull market had supposedly come. However, what is evident is that usually at any real stock market top there should be really no bears and everyone should be thinking we are still going higher. Now with this recent turn around, even those bears will have to turn into bulls because they have already missed a great run and would not want to miss anymore of it. Once this happens I believe we can go to 14,400 on the Dow, and the next decline will probably be the one that breaks the bull's back all the way down to 12,800.

IS THE BEAR DONE HYBERNATING?

The downturn looks like it is here as had been predicted.

Just to be safe, I would sell the majority of stocks because I think diversification in a bear market is wrong. In any market, 3 of 4 stocks follow the direction of the market. So it only makes sense to be diversified in a bull market to take advantage of this widespread move up, but in a bear market, it just exposes you to more stocks for more declines.

If the bear is here and scaring the general markets, you can bet that most stocks are also going to be shaken up and the more stocks you are invested in, the more hits you are going to take.

MARKET UPDATE

As the markets take a big hit today, I believe these are the signs of the much anticipated downturn that we have been discussing on our blog. It is obvious that we are in the economic stage known as the "peak", and the economic downturn is ahead of us.

What is important to note is that stocks move in anticipation of these cycles, so now is the time to sell, not when the recession is here. In fact, many studies show that bear markets have been well under way by the time a "recession" is announced. Therefore, I suggest investing in "cheap" stocks and staying away from any stocks with a high multiple and one that relies on a good economy to make money.

WHAT ARE YOU BUYING?

As of right now, the only stocks that I am willing to own a major position in are SUNH and UCTT.

UCTT has found support, and is making a great comeback. It is not too late to buy, and I myself bought shares yesterday.

SUNH is the greatest play in health care right now, which is in an industry I do not think you should be out of. Darwinian has much experience in the health care industry, and his numbers have proven to be very efficient in the past and present. It would not be a stretch to say SUNH is really worth at least $20.

Believe in Darwinian! Believe in SUNH!