SHREVEPORT, La., Aug. 1, 2005 (PRIMEZONE) -- StockPickReport.Com (IARD #119079, http://www.stockpickreport.com -- the web's only non-mainstream stock rating service), rates Nasdaq 100, General Electric, LSI Logic Corporation and MBNA Corporation.
STOCKPICKREPORT RATINGS:
Nasdaq 100 (Nasdaq:QQQQ) -- STRONG SELL http://www.stockpickreport.com/abrating.php?sym=QQQQ General Electric (NYSE:GE) -- SELL http://www.stockpickreport.com/abrating.php?sym=GE LSI Logic Corporation (NYSE:LSI) -- SELL http://www.stockpickreport.com/abrating.php?sym=LSI MBNA Corporation (NYSE:KRB) -- SELL http://www.stockpickreport.com/abrating.php?sym=KRB StockPickReport Commentary -- August 1, 2005 Neil Batho Commentator
You can make some serious money buying puts, selling calls, or sell short right now. But don't head for the exits... yet.
The great news for folks who use those strategies is all the articles talking about if the "good earnings" will propel stocks higher now.
Well, what's more important is what traders THINK the earnings will be the next time and the time after that. You see, in the markets (and life if you think about it), perception IS reality.
That's right, perception IS reality.
It doesn't matter if the earnings are good. It only matters what traders do with the news.
We've had a nice big run since May. It seems like a long time ago that stocks were falling in January. One of the indicators we use is called a "Bullish Percent Index". It is the ultimate contrarian indicator. Here's how it works: when a stock "breaks out" it officially is on a "buy signal". When a stock breaks support, it is officially on a sell signal. So, plot the percent of stocks on a buy signal.
If 100% of stocks are on buy signals, do you think it's too late to get in? You'd be right. Conversely, if 0% were on buy signals, and it turned around... 4%, 8%..., think it'd be a good time to get in? You bet.
Of course we never reach those extremes. I have never seen over 90% or below 10%. BUT... would it surprise you to know that in July 2002, only 12% of stocks in the S&P 500 were on buy signals? That was a screaming "GET IN"! In January 2004 we were at 88% on buy signals. Translation: SELL!
So, what's our point? It's that we're at 74% right now, and in January when stocks were falling we were at 76%, down to 52%.
But, stay in until these numbers start deteriorating. We'll let you know right here in this column. This indicator is almost certainly new to you, but it just makes so much sense. We love it. We think you will too.
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All commentary written by StockPickReport staff or contracted writers and analysts.
WHAT THESE RATINGS MEAN:
StockPickReport.Com ranks stocks with technical analysis. These ratings do not indicate a "long term" view. These ratings reflect an opinion for the short term. These ratings may change based on market conditions.
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If the links to our ratings above do not work, please use these:
Nasdaq 100 (Nasdaq:QQQQ) -- STRONG SELL http://www.stockmonthly.com/QQQQ-Stock-Research.php General Electric (NYSE:GE) -- SELL http://www.stockmonthly.com/GE-Stock-Research.php LSI Logic Corporation (NYSE:LSI) -- SELL http://www.stockmonthly.com/LSI-Stock-Research.php MBNA Corporation (NYSE:KRB) -- SELL http://www.stockmonthly.com/KRB-Stock-Research.php