Friday, November 12

Stock Market Today and Tomorrow

Stock Market Today and Tomorrow - Have Stocks Peaked?

For Sunday newspaper share tips please scroll down to the bottom of this page.

On the stock market today the DOW had its worst loss for three weeks and this week the markets have had their worst weekly performance since August. The DOW fell 90 points to 11,192 the S&P fell 14 to 1199. Yesterday we put up a video in which the Perfect Stock Alert analyst said the markets are peaking and due for a pull back to under 10,000 on the DOW - see - stock market charts - he may yet be proved right. Actually some analysts are still waiting for the stock markets to re-visit the lows we saw back in March 2009, so a pullback to under 10,000 seems quite mild by comparison.

The stock market tomorrow ? Well it's closed, so that was easy.

Today, stocks started in the red on speculation that China might raise interest rates to fend off inflation. The fear is that this would slow growth and led to a 5.2% drop on the Chinese stock market in the Shanghai Composite index. There were also concerns about eurozone sovereign debt in the form of Ireland which is in a pickle and will need to be bailed out.

Stocks tried to rally briefly but when that didn't work the selling increased pace, and the markets fell through support levels. The S&P 500 finally ended the day below 1200 with a 2.2% loss for the week. 90% of S&P 500 stocks ended up down, although NVIDIA, Intel and Disney were among the gainers. Disney shares are now strangely enough, given the fact that there are nearly 10% unemployed in the USA, at their best level in ten years.

Back on Monday 8, Mark Waterhouse, portfolio manager at Garrett Nagle, said there were bargains to be had

“The whole energy sector has lagged the market, and we find that somewhat surprising,” he said. “And by the year 2035, energy consumption in the U.S. is going to be up 40 percent from where it is now.” The year 2035 !! Holy carbon monoxide emissions Batman ! By the year 2035 the Amish might be making a fortune from their horse and cart monopoly ! Or we might all have solar-powered roller blades to get around.

Anyhow here are Mr Waterhouse's picks and the good news is they are even more of a bargain than they were on Monday !

Yuhe International [YUII 10.41 -0.26 (-2.44%) ]
ExxonMobil [XOM 70.99 -0.84 (-1.17%) ]
Citigroup [C 4.29 -0.07 (-1.61%) ]
ConocoPhillips [COP 62.42 -0.47 (-0.75%) ]
Timberland [TBL 23.10 -0.40 (-1.7%) ]
Wonder Auto Technology [WATG 9.40 -0.28 (-2.89%) ]

I wonder if Mr Waterhouse is anything to do with online stock brokers (ha ha) TDWaterhouse, if so then I'm afraid I will be eschewing his recommendations as the last time I dealt with the Waterhouse family it cost me $1500, through no fault of my own, which would lead you to wonder perhaps whose fault it was and whether it had anything to do with a software fault. Suffice to say I no longer have an account with TDWaterhouse given their refusal to admit anything and their refusal to give me back my $1500 - very short-sighted as it has cost them a lot more than that in lost trade. If you are looking for proper online stock brokers e.g Etrade or Tradeking etc... then check out this list of cheap and cheerful brokers here - how to buy stocks online  - you will notice that TDWaterhouse is not among them as I do not feel I can in all honesty recommend them, just my humble opinion based on my experience with their trading software.

Make of that what you will. The year 2035 ?! I Think when all is said and done I prefer Mr PerfectStockAlerts approach - if you are curious about how to trade stocks and make money on the stock market by doing nothing more complicated than looking at a few squiggly lines then check out stock charts for beginners.

Sunday Times

Sportingb*t is looking at a merger with Swedish rival Unib*t, that would create a £600 M group [the asterisks are there because Uncle G don't like g*mbling, in case you were wondering - Ed.]

Bidders are circling Pontin’s

RBS agrees to sell Grosvenor House hotel to s Sahara for a knock-down price of around £470 M.

GM in talks to sell a $500 M stake to Chinese state car firm SAIC Motor.

Quantitative easing will not cause cautious banks to loosen credit standards, nor businesses to invest their $2 T of extra cash. [Subprime mortgages are returning though - allegedly - more on 'new prime mortgages' later in the week - Ed.]

Sunday Telegraph

Questor share tips
Buy Aviva at 401.7p -1.4p.
Buy Genus at 826p +6p.

Independent on Sunday

Mitchells & Butlers is selling off 53 pubs

Premier Oil in takeover talks with Korean state group KNOC

Mail on Sunday


John Laing Infrastructure Fund's
Midas verdict:
Not a stock market offering for investors wanting huge capital growth, but should provide a decent annual income pf arpund 6% p.a.. The offer closes on Wednesday so contact your stockbroker as soon as possible.

Midas verdict:
If you are already an investor in Latchways you have done well and may be tempted to sell about half your shares. New investors could buy on weakness. Profits are climbing and should climb further as the British economy recovers. There may even be a bid.

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