April 15, 2008

“You're Due the Truth”

Stocks are performing well.

If you reacted with a “HUH?” just now, you’re not alone—and I haven’t lost my marbles.
The fact is that stocks are outperforming the index. The index has stagnated since January, while stocks have continued to advance.

We have a ways to go before hitting resistance. So in the interim, it’s best to play the stocks that aren’t boring. I would classify momentum stocks as the antithesis to “boring,” as they have the potential to break out to all-time highs.

These high-beta stocks practically come with the catchphrase, “Where the action is!” Low-beta fundamentals and the latest breaking news be damned! These stocks couldn’t care less. Their momentum recognizes no bounds…

Especially when the QQQ—tracking stocks that emulate and measure the NASDAQ’s volatility—and the S&P 500 broke out, that gave the ALL CLEAR signal to momentum players to buy high-beta stocks.

So, if patience isn’t one of your virtues. then maybe these are the stocks for you! You won’t be toiling around wondering when these stocks will make their move. Nope. These suckers are going to move like hot melted butter sliding down a corncob! Speedy and deliberate—these stocks are our ticket for high and fast gains.

But remember: Beta stocks are a measurement of market risk, and if you are risk averse, investing in high-beta stocks is not the strategy for you. These momentum stocks can have you grinning from ear to ear or they can have you banging your head against the wall, especially if you don’t understand how they operate. You MUST be able to weather the rough and tumble times with ease, and the best way to do this is by understanding your level of risk tolerance.

Let’s face it, some speculators are better at comprehending the big picture while others have trouble seeing past what is directly in front of them. You know better than I into which category you fall.

Regardless of your perspective’s scope, though, you can reasonably expect to succeed, even in this market. In my next video update to Trending123 subscribers, I am going to shed some light on specific stocks and sectors that are outperforming the market that I think traders stand to reap a solid buck.

Don’t miss out on an opportunity to gain insight into where to play your money in this crazy market!

Sincerely,

John Lansing
Trending123

P.S. Watch out! Some stocks are like hot potatoes right now—you need to get your hands on them quickly if you expect to profit. At Trending123, we have a Portfolio Watchlist that’s as long as our current portfolio! Find out how you can capitalize on the next round of money-making/profit-taking stocks now!

P.P.S. Seems like everyone has a blog these days! So if you can’t beat ‘em, I say join ‘em! Especially when you are overflowing with trading goodness. Check out my Trending123 blog today!

Do the Math!

Even writing the word “math” makes me squirm a little in my seat. It’s certainly an Achilles heel for a lot of us—but be not afraid dear traders! I promise nothing resembling calculus will ever be mentioned. Besides, this is the kind of math that will calculate the kind of profits we can expect. (A lot of good coming out of doing just a little math!)

Case in point: Intel (INTC). The stock is in an inverted head and shoulders pattern, as shown below. (Check out how this pattern forms and how best to trade it.)

At the moment the stock is trading in the low 20s and I have told my Trending123 members that it’s a good time to accumulate this stock on weakness.

My target for INTC is around 40. (HERE’S WHERE THE MATH COMES IN.) I didn’t just pull that number out of a hat or because I want us all to earn a double. There is actually a tried and true formula for calculating target for any given stock. And this one is no different.

To figure out target, all I did was measure the distance from the neckline to the head. Then I added that number from the base of the neckline and TA-DA: we have target!

Lessons that pay in profits—that’s just one of the many benefits of being a Trending123 subscriber—are available to you for free, once you sign-up!

The Best Mode of Transportation

I’ve been talking about transportation stocks for a while now. And no wonder—stocks like JB Hunt (JBHT), Ryder (R), Burlington Northern (BNI) and CSX—are at new all-time highs and in many cases are front-running the market. No doubt about it, right now this is the BEST performing sector.

So how should you plan on taking advantage of this transportation trend? By grabbing hold of PCAR and letting it take you for a ride!

PACCAR Inc. (PCAR) is similar to the stocks I just mentioned except it hasn’t broken out just yet. Along with the other transportation stocks, it topped in the spring of last year and has formed a quasi-channel pullback of a continuation wedge (of sorts). We’re seeing positive inflow on the MACD as everything is coming up bullish!

It’s currently trading in the mid-40s and it looks to be a target of about 80, so it’s not quite a double but we are still poised to profit handsomely. Get all the details in the Trending123 portfolio.