SHREVEPORT, La., May 15, 2006 (PRIMEZONE) -- DonHarrold.net (IARD #119079, http://www.donharrold.net), rates Microsoft Corp (Nasdaq:MSFT), Lucent Technologies Inc (NYSE:LU), Finisar Corporation (Nasdaq:FNSR), and Amgen Inc (Nasdaq:AMGN).
DonHarrold.net provides unbiased stock ratings from registered investment advisors. DonHarrold.net issues daily market commentary and features a member's area with detailed information on widely held stocks.
Important Stock rating Changes:
Microsoft Corp (Nasdaq:MSFT) DonHarrold.Net Rating: Weak Sell http://www.donharrold.net/ratings/US/MSFT.php Lucent Technologies Inc (NYSE:LU) DonHarrold.Net Rating: Weak Sell http://www.donharrold.net/ratings/US/LU.php Finisar Corporation (Nasdaq:FNSR) DonHarrold.Net Rating: Sell http://www.donharrold.net/ratings/US/FNSR.php Amgen Inc (Nasdaq:AMGN) DonHarrold.Net Rating: Buy http://www.donharrold.net/ratings/US/AMGN.php
Okay, now, on April 13, I said, "If you buy stocks this week, understand that what happens this week may give you the false impression that the market is about to begin a STRONG move higher. I would not buy into that until the technicals confirmed it." I titled my comments "Market Sucker Punch on the Way."
I told you all to be selling and moving out and getting liquid. So, how did you respond?
The emails I got over the last month ranged from "you're a moron" to "get a real job." Not one email from ANYONE saying, "Great call." Or, "Hey, you were right."
Folks, there is no glory and no love for a market-timer who gets it right on the SELL side.
So, here's what the mainstream folks told you last week contributed to the downslide. These reasons were all followed with the caveat that, whatever the reason for the market drop it was uncalled for and we'd see a new high very soon for all markets:
1) The economy is great. The sell off was a reaction to the great news about corporate profits.
2) Mutual funds are "taking profits."
3) Individuals are worried about -- A) Inflation, B) Oil Prices, C) Iraq, D) Iran, E) the NSA "scandal" (and the security of U.S. companies), F) Bird Flu in Indonesia (and in New Jersey, by the way -- bet you didn't see that piece of news), G) the price of Gold, H) China calling in our debts (we owe trillions to the "sleeping giant"), and oh, any other "fundamental" news item you can think of.
...Or a combination of these.
The one thing all the analysts I watched had in common was they believed "we'd hit a new high on the Dow this week" (or certainly sometime in the next few weeks). I mean, how can you sell "THIS" market?
Now, you know what. I have been pounding the macro economic issues for the last two months. For example, the dollar's value does make a difference. The price of oil really does affect stock prices. Etc. Ad nauseum. I could continue down that road.
But, y'all don't want to hear that. Y'all want to hear this in more "bullish" terms.
Here goes: I believe the market will give you some golden opportunities to BUY stocks to your heart's content soon. I believe you will see some GREAT prices on stocks you REALLY LOVE soon. I believe a move higher for all stocks is right around the corner. A great many stocks are "setting up" to be in "rally mode" and should see fantastic percent gains...
...for the astute trader...
My belief is that the market is not ready to move higher yet. I don't care what tomorrow brings. I would be selling into any rally at this point. Based on the technical analysis I follow (Stochastics, RSI, and MACD), there are only 22 stocks "oversold" and indicating a move up is near.
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