SHREVEPORT, La., Jan. 5, 2005 (PRIMEZONE) -- StockPickReport.Com (http://www.stockpickreport.com - the web's only non-mainstream stock rating service), rates Pharmos Corporation, Calpine, Applied Micro Circuits Corp, VERITAS Software Corporation
STOCKPICKREPORT RATINGS:
Pharmos Corporation (NASDAQ:PARS) - WEAK SELL http://www.stockpickreport.com/abrating.php?sym=PARS
Calpine (NYSE:CPN) - SELL http://www.stockpickreport.com/abrating.php?sym=CPN
Applied Micro Circuits Corp (NASDAQ:AMCC) - STRONG SELL http://www.stockpickreport.com/abrating.php?sym=AMCC
VERITAS Software Corporation (NASDAQ:VRTS) - SELL http://www.stockpickreport.com/abrating.php?sym=VRTS
STOCK COMMENTARY:
Wednesday, January 5, 2005
StockPickReport Commentary
PART ONE: Smiles, Hugs, and Good Times!
A member wrote us today to say, "Thank you for the very accurate call you made on the market today, its nice to be sitting on the sidelines with cash waiting for this 'sale' on stocks to continue,"
The member continued, "Since I joined StockPickReport I have not been caught in any major downturn of the market, I used to give all my profits back, but not any more."
This email is the VERY REASON we are in business. For six years we've collected emails from folks who've said that, if nothing else, we've helped them keep more money in their portfolio while the market dropped around them.
Thanks to this member for lifting our spirits today.
PART TWO: The Gloves Come Off
Remember last week when "mainstream wallstreet" was falling all over itself because gold prices fell, and oil prices "plummeted", and the new year was full of promise and bullishness and stocks were ready to rally and...
blah blah blah blah blah
MAN, it makes us so sick to read the garbage "mainstream wallstreet" calls "news". Tuesday, the markets sold off and - here's the kicker - gave back all the gains since the beginning of December. (Of course today's drop was not "news" to StockPickReport members - we've been looking for it for a month now!)
Yet, Tuesday evening, one news agency "reported", that,
"New concerns about inflation from the Federal Reserve drove stocks sharply lower Tuesday, adding to a spate of profit-taking that erased nearly a month of Wall Street's gains in the first two sessions of 2005.
"The losses over the past two days erased substantial gains from the past month, with the Dow and the S&P reaching their lowest levels since the second week of December and the Nasdaq falling to its lowest close since Nov. 30.
"The selling was intensified by climbing oil prices, with tight supplies of heating oil and evidence that Saudi Arabia was cutting back on production blamed for the increase. A barrel of light crude settled at $43.91, up $1.79, on the New York Mercantile Exchange."
No kidding? You mean inflation is an issue? Oil prices matter? "Profit-taking" actually can happen?
UGH.
Look at the chart below. You'll find the trendline we've been watching since August was broken today. The S&P is at a CRITICAL juncture. Now, if we were trading, we'd be OUT of the market right now in most stocks and in stocks on a VERY selective basis. MACD, RSI, Stochastics, and the broken trendline all point to more downside.
KEY FACT: 42 of the 43 stocks on our "Strong Buy and Strong Sell" list for Wednesday are STRONG SELLS. AMCC, KRB, and SLB are all good short candidates, we think.
Another reason you might consider is that all the cheerleading and PUMPING "mainstream wallstreet" did over the last quarter of 2004 can now be unwound. Brokers can cheerfully report that they "gave" their customers a great year in 2004, so look for some backpeddling over the short term. You'll hear a lot of talk about "profit taking" and stocks just got "over done", or a correction is "healthy".
UGH.
The S&P is below the trendline we've been discussing for months. This is an important trend, and, like I said, we'd be either A) selling calls on our stocks, B) selling out of some positions, or C) at the very least raising stop/losses to conserve capital in case the market drops further.
Before you say ask, "Why is StockPickReport so negative?", consider that we have tried to give you ways to MAKE MONEY in a downturn: Sell calls on stocks you own, conserve capital by lightening your exposure to the market, sell puts on stocks you'd like to own at lower prices, or outright short-sell.
No, we are not negative AT ALL. We hope y'all will MAKE SOME MONEY if the market does drop! And, keep in mind that the market GOES UP and the market GOES DOWN. But, the market WILL go up again.
And, when the market is in a more "bullish" position, you will see us "POUNDING THE TABLE" to jump in with both feet!
Finally, please view the recent BALONEY from "mainstream wallstreet" as the exact type of thing we want you to AVOID. It's why we recommend you TURN OFF hype-driven "financial" media. More importantly, it's why we hope more of you will pick up a book like, "Technical Analysis Explained" by Martin Pring.
Knowledge is power, and we think you'll find the knowledge you need AWAY from the roller-coaster "mainstream wallstreet".
If you have questions or comments, please email don@stockpickreport.com.
For More Commentary Go Here: http://www.stockpickreport.com
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:
Pharmos Corporation (NASDAQ:PARS) - WEAK SELL http://www.stockpickreport.com/abrating.php?sym=PARS
Calpine (NYSE:CPN) - SELL http://www.bigtimenews.com/sp500/CPN-Stock-Quotes-News-and-Research.php
Applied Micro Circuits Corp (NASDAQ:AMCC) - STRONG SELL http://www.bigtimenews.com/sp500/AMCC-Stock-Quotes-News-and-Research.php
VERITAS Software Corporation (NASDAQ:VRTS) - SELL http://www.bigtimenews.com/sp500/VRTS-Stock-Quotes-News-and-Research.php