Archive for March, 2005|Monthly archive page

Where The Trend Ends

Welcome to this week’s edition of The Growth Stock Report!

Traders,

The holiday shortened week brought more selling to the picture, and we’ve seen some price action that indicates it might only get uglier.

Keep it in perspective that stock market tops are often a process that can take months to play out. There is nothing wrong with doing nothing with your portfolio.

As the great trader Jesse Livermore (who is presumed by many to be the subject of Edwin Lefevere’s “Reminiscences of a Stock Operator”) supposedly said:

“After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that?”

Our current position:

In this week’s edition you will find:

Where We Are:

Taking a look at the overall markets:

Long-term trend lines are in play. When long-term trendlines are broken it is usually a sign that bigger things are going on in the markets.

Technically speaking,

Where could things turn around?

Our answer is – How would we know? These levels are next in line to the downside:

We have Dow support at 10,380 area where a long-term trendline would be tested. And S&P 500 support around 1,170, which is also parked at critical trendline. Nasdaq support is found around 1,974 where it will come into a confluence of levels and a key long term trendline as well.

Key chart action:

Charts courtesy of Stockcharts.com.

The Semiconductor Index ($SOX) posted a modest gain for the week.

The Banking Sector ($BKX) had a heavy sell-off for the week after breaking a longer term trendline.


The Broker Dealer Index (XBD) remains within a trading range.

The Internet Sector ($IIX) broke its long term trendline.

Energy (IXE) put in a modest rally for the week.

Volume indications continue to illustrate an environment of institutional selling.

Leadership: The top 10 industry groups from the 6 month RS screen are:

  1. HOSPITALS
  2. CONSUMER SERVICES
  3. RAILROADS
  4. TEXTILE MANUFACTURING
  5. HEALTH CARE PLANS
  6. GROCERY STORES
  7. INTERNET INFO PROVIDER
  8. RUBBER PLASTICS
  9. LONG-TERM CARE FACILIT
  10. INVESTMNT BROKERAGE-RE

New Highs: The number of New Lows perked up for the week as New Highs tapered off.

What We Like:

We continue to see nothing worth buying at this time.

We are seeing some things that are encouraging as new highs were made with AFFX, CMTL, GPN, HANS, LCAV, PNRA.

Energy is in pullback mode. As long as we continue to see our positions from this sector hold up we’ll stick it out. We want to see volume dry up to indicate selling pressure is exhausted.

Healthcare and Drug stocks have held up well in recent selling. From a technical perspective we believe there is potential here, though are not going to make any commitments just yet.

Action from our open positions:

KCS – KCS Energy fell apart on us and we’re out of it. We were able to nab a 20% gain on half a position so no complaints here.

STO – Statoil succumbed to selling pressure for the week though is still technically alive. This one came within a shade of our 20% profit target and we recommended ringing the cas register in anticipation of selling. We want this one to stay above its 50-day moving average of 16.77.

XTO – XTO energy slid south like the rest of the energy stocks, and we’re still in it after taking a 20% profit with half a position.

MUSA – Metals U.S.A. has been consolidating. We still like it despite not having hit a profit target. We’ll exit half a position if it reaches our buy point of , and perhaps hold on to our other half if it stays above a 2% loss mark of 18.72. Any sever weakness from the metals sector will force us out before any loss is registered. After STLD’s knock out last week remain very cautious of the sector.

PMTI – Palomar Medical technologies is vulnerable to further selling. This is now considered by us an aggressive long, or in other words don’t be surprised to lose on this one. BUT, if it can stage a turn around around its 50-day moving average its upside could be stellar. A re-entry into the position may come in play going forward – it’s hard to say.


What Was Important About Last Week:

  • The Federal Open Market Committee raised its target for the federal funds rate, by a quarter of a point to 2.75%. It was the seventh such increase since last June.
  • The Bureau of Labor Statistics said its consumer price index rose 0.4% in February, beating economists’ estimates.
  • Internet company Yahoo! (YHOO) said it intends to spend up to $3 billion on its own outstanding stock. At itsÂ’ current price the purchase would buy around 97 million shares.
  • General Electric (GE), raised its first-quarter profit estimate to between 37 cents and 38 cents a share, previous estimates were for 36-to-37 cents. GE is the largest U.S. company.
  • Defense contractor Northrop Grumman (NOC) raised its full-year earnings forecast to between $3.60 and $3.75 a share. Previous estimate were between $3.45 and $3.60 a share.
  • Entertainment giant Sony(SNE) released its PlayStation Portable. The handheld device plays games, movies and music and can display digital photos, be connected to a computer, or communicate with other PSPs wirelessly. The product sells for $249 retail.
  • Shareholders approved Kmart’s (KMRT) $12.3 billion merger with Sears (S), to create the third-biggest U.S. retailer behind Wal-Mart (WMT) and Home Depot (HD).
  • New-home sales rose 9.4% for February to a seasonally adjusted annual rate of 1.226 million. This is the biggest gain in more than four years, and reverses a steep decline for January. Despite rising interest rates, the housing market has not showed signs of a decline.
  • Unemployment claims rose to 324,000 last week, to make it the third straight week above the 320,000.
  • Mutual fund group Pax World Funds, a fund specializing in only socially responsible companies, sold $23.4 million worth of Starbucks (SBUX) shares because of the marketing of a coffee-flavored liqueur with Jim Beam. The fund liked Starbucks using “fair-trade” coffee, though drew the line when it came to booze.
  • Blockbuster (BBI), the No.1 movie-rental chain, failed to close a hostile tender offer for Hollywood (HLYW) which is the No. 2 chain by revenue. The offer’s deadline passed Thursday, ending its bid.


What We Are Watching For This Week:

Key earnings releases:

  • MONDAY: none
  • TUESDAY: Biogen (BGEN), Genzyme (GENZ), Apollo Group (APOL)
  • WEDNESDAY: Best Buy Inc. (BBY), Circuit City Stores (CC), Health Management Assoc. (HMA), Veritas (VRTS)
  • THURSDAY: Aetna Inc. (AET), Citigroup Inc. (C), Merck & Co. (MRK), Redhat Inc. (RHAT)
  • FRIDAY: none

On the economic front we have potential market movers with:

  • MONDAY: none
  • TUESDAY: Consumer Confidence
  • WEDNESDAY: GDP (Q4f, 2004)
  • THURSDAY: Factory Orders, Jobless Claims, NAPM Chicago
  • FRIDAY: Construction Spending, Consumer Sentiment, Emloyment Situation, Motor Vehicle Sales, ISM Mfg. Index

This Week’s Scans:

SOON TO BE UPDATED!

SETUPS: AMHC, ARO, ISSC, OMM, OSG, RAH, REM, TNP

BASES: ALDN, EXP, LSCP, MTLM, RRGB, THX

This Week’s Word On Discipline:

“No evil propensity of the human heart is so powerful that it may not be subdued by discipline.” — Seneca

DISCLAIMER:
Past Performance Is Not Indicative of Future Returns. All commentary provided
by The Growth Stock Report is for educational purposes only. The analysts and
employees or affiliates of The Growth Stock Report may hold positions in the
stocks or industries discussed here. This information is NOT a recommendation
or solicitation to buy or sell any securities. Your use of this and all information
contained in The Growth Stock Report is governed by the Terms and Conditions
of Use. Opinions expressed are our present opinions only. This material is based
upon information that we consider reliable, but we do not represent that it
is accurate or complete, and that it should be relied upon, as such.

Wait And Watch Mode

Welcome to this week’s edition of The Growth Stock Report!

Traders,

Are cautious outlook has turned to concern for the market. Price and volume on the major indexes have turned us off from taking on any new positions, so we’re in wait and watch mode.

Our current position:

WARNING! This market is vulnerable to further selling.

In this week’s edition you will find:

Where We Are:

Taking a look at the overall markets:

The Dow 30 and S&P 500 declined for the week, and are now just below their 50-day moving averages.

The Nasdaq has broken its 9-week trading range to the downside.

Technically speaking, the major indexes have broken their up trends. We have critical support areas for the Dow 30 around 10449, for the S&P 500 around 1160, and for the Nasdaq around 1974. Before taking a short bias we need to see weekly closes with conviction below these zones, though anticipate a fight. We’re going to be watchers, not players in here.

The look we’re getting from the market is mostly negative, though we still have pockets of strength that will be monitored closely.

As mentioned in last week’s report, sell offs are great litmus tests, and so far we have Internet stocks and broker dealers holding up. These sectors tend to be leaders in the market, so strength here will be perceived as strength for the market.

The negatives we have are in techs and banking as they broke key support levels. We believe the hard truth is the market won’t rally without support from these areas.

Key chart action:


Charts courtesy of Stockcharts.com.

Dow Jones Commodity Index ($DJAIG) hit another all time high.

The Semiconductor Index ($SOX) declined for the third week in a row.

The Banking Sector ($BKX) broke a 9-month trend-line to the downside.

The Broker Dealer Index (XBD) is holding ground after upbeat earnings from key players in the group.

The Internet Sector ($IIX) continues to flirt with a key trend-line.

Energy (IXE) put in a modest rally for the week.

Homebuilders ($DJUSHB) have declined for the second week in a row. We’ve mentioned this sector looks like it may be putting in a climax top.

Volume indications gave us a clear bearish signal for the week as all major indexes gave us back to back distribution days.

Leadership: The top 10 industry groups from the 6 month RS screen are:

  1. TEXTILE MANUFACTURING
  2. MULTIMEDIA GRAPHICS SF
  3. RESORTS CASINOS
  4. CONSUMER SERVICES
  5. HOSPITALS
  6. HEALTH CARE PLANS
  7. CATV SYSTEMS
  8. RAILROADS
  9. TRUCKING
  10. SEMICONDUCTOR-BROAD LI

New Highs for the NYSE and Nasdaq declined in numbers for the week as the number of new lows hit increased, giving us a bearish bias.

What We Like:

We continue to see nothing worth buying at this time.

Energy remains attractive.

Stocks with top fundamentals setting up are: ARO, CNI, EXP, GPN, HLEX, OSG, PETD, RAH, THX, TNP.

Action from our open positions:

KCS – KCS Energy retreated to below its 50-day moving average, though turned around without hitting our break-even stop-loss mark. We’re still holding half a position after taking half off at the 20% profit target.

STO – Statoil continues to hold ground just shy of an all time high. 19.97 is our 20% profit target – So close now it won’t hurt to ring the cash register if energy stocks come under pressure.

XTO – XTO energy edged higher for the week, as its 20-day moving average holds as support. We still like it, and have already bagged a 20% profit on it.

MUSA – Metals U.S.A. continued to pullback for the week, and is still above our buy point of 19.10, though still short of our 20% mark of 22.92.

STLD – Steel Dynamics took it on the chin for the week – we’re out with a 2% loss.

PMTI – Palomar Medical technologies inched higher as its 20-day moving average marks support. 32.80 is our 20% profit target.


What Was Important About Last Week:

  • The Treasury Department said foreigners bought $91.5 billion more in U.S. securities than domestic investors did in January. This is a far bigger number than economists were expecting, and eased fears of a retreat in support of America’s $58.3 billion trade deficit.
  • U.S. retail sales rose 0.5% for February, slightly less than expectations.
  • General Motors (GM), the No. 1 U.S. auto maker, said it expected to lose $1.50 a share in the first quarter, down from previous expectations that it would break even. For the year, the company expects to earn between $1 and $2 a share, down from its earlier $4-to-$5 range.
  • Earnings reports from broker dealers were stellar – as usual. Lehman Brothers (LEH), Bear Stearns (BSC), Goldman Sachs (GS, and Morgan Stanley (MWD).
  • The price of crude oil hit a new high of $57 a barrel.
  • Housing starts rose 0.05% for an annual pace of 2.195 billion. This is the fastest pace since February 1984, and beat economists’ forecasts.
  • The U.S. current account deficit rose to a record $187.9 billion, or 6.3% of gross domestic product, in the fourth quarter of 2004.
  • Jobless claims fell to 318,000, matching estimates.
  • Leading indicators rose 0.1% for last month, though the index has fallen 6 out of the last 9 months.
  • The Philadelphia Federal Reserve said its index of factory activity fell to the lowest level in 20 months.


What We Are Watching For This Week:

Key earnings releases:

  • MONDAY: none
  • TUESDAY: Biomet Inc. (BMET), KB Home (KBH), Synopsus (SNPS), Wal-Mart (WMT).
  • WEDNESDAY: Applied Materials (AMAT).
  • THURSDAY: Northrop Grumman (NOC).
  • FRIDAY: none

On the economic front we have potential market movers with:

  • MONDAY: none
  • TUESDAY: FOMC Meeting and Announcement, Producer Price Index, Investor Confidence.
  • WEDNESDAY: Consumer Price Index, Existing Home Sales.
  • THURSDAY: Durable Goods, Jobless Claims, Money Supply, New Home Sales.
  • FRIDAY: none


This Week’s Scans:

SOON TO BE UPDATED!

SETUPS

BREAKOUTS

BASES

SHORTS

This Week’s Word On Discipline:

“He that cannot obey cannot command..” — Ben Franklin

DISCLAIMER:
Past Performance Is Not Indicative of Future Returns. All commentary provided
by The Growth Stock Report is for educational purposes only. The analysts and
employees or affiliates of The Growth Stock Report may hold positions in the
stocks or industries discussed here. This information is NOT a recommendation
or solicitation to buy or sell any securities. Your use of this and all information
contained in The Growth Stock Report is governed by the Terms and Conditions
of Use. Opinions expressed are our present opinions only. This material is based
upon information that we consider reliable, but we do not represent that it
is accurate or complete, and that it should be relied upon, as such.

Litmus Test

Welcome to this week’s edition of The Growth Stock Report!

Traders,

Key leadership sectors staged pullbacks for the week, and as we maintain a tight watch over our open positions we see little to get excited about.

We will be watching volume closely for any signs of institutions exiting at these levels.

Our current position:

VERY CAUTIOUS, USE SMALL PROFIT TARGETS!

In this week’s edition you will find:

Where We Are:

Taking a look at the overall markets:

The Dow 30 and S&P 500 hit 3 and half year highs, while the tech driven Nasdaq remains in a 9 week trading rage.

Charts courtesy of Stockcharts.com.

We are anticipating deeper pullbacks in the market, and are considering the selling pressure to be a litmus test. There’s nothing better that a sell off to separate the strong from the weak.

Dow Jones Commodity Index ($DJAIG) hit an all time high.

The Semiconductor Index ($SOX) posted a slight loss for the week as it remains in a 5 week trading range.

The Banking Sector ($BKX) is pressing a lower trend line that, if broken, may trigger selling.

The Internet Sector ($IIX) also faces ana important decision as it flirts with a 2 and a half year trend line.

Energy (IXE) pulled back, with distribution evident in key players (MUR, KCS, AHC, REM, SUN, VLO).

Action from our open positions:

KCS Energy (KCS) zoomed to our 20% profit target of 18.10 before violently turning around. This has turned into a wild one, so we’re going to pull the plug on the second half of our position if it falls below our buy point of 15.09. Another way to play this is to exit half of th half left open and stick it out as long as the stock remains above the initial stop loss market of 2$ or 14.78.

XTO Energy (XTO) pulled back for the week, though will be considered “healthy” as it attempts to reverse on its 20-day moving average. This one already hit our 20% profit target of 43.68 where we exited half of our position.

Metals USA (MUSA) also hit a new high before selling off. We’ve already booked a 20% profit on this one, and are comfortable. We’re looking at the 2 day moving average as critical, and will exit if the stock falters here.

Steel Dynamics (STLD) has dipped below our initial buy point of 39.81. Three days of distribution in the past two weeks is additional incentive for “safe money” to be out of this one. STLD’s cousin STTX was hard for the week.

Staoil (STO) was surprisingly resilient for the week while hitting a new high and weathering sector selling pressure. Our 20% mark is at 18.92.

Technically speaking, this market is trend up, though without participation tech we are suspect. T

Volume is giving us a slight bearish signal as distribution in techs has not been offset by any significant buying from institutions.

Leadership: The top 10 industry groups from the 6 month RS screen are:

HEALTH CARE PLANS
OIL GAS DRILLING EXPLO
MULTIMEDIA GRAPHICS SF
TEXTILE MANUFACTURING
RAILROADS
RESORTS CASINOS
SEMICONDUCTOR-BROAD LI
RESIDENTIAL CONSTRUCTI
INTERNET SERVICE PROVI
HOSPITALS

New Highs on the NYSE began to slow in numbers for the week. New Lows on both the NYSE and Nasdaq have taken it up a notch, though have yet to tilt the scales to the sell side.

What We Like:

We like nothing right now.

Stocks with top fundamentals setting up are: ARO, CHRW, HLEX, NCE, RAH, and THX.


What Was Important About Last Week:

The Federal Reserve said in January consumers borrowed $11.5 billion more than in December – almost double economists’ forecasts – for a 6.6% annualized rate, the fastest pace in three months. Total consumer debt outstanding, excluding mortgage debt, was $2.12 trillion. Yikes.

Crude-oil prices hit a record high above $55 a barrel.

The U.S. Energy Information Administration raised its forecast for China’s consumption for the year with estimates of $45-a-barrel through 2006.

The World Wide Fund for Nature said China would soon be the world’s biggest consumer of timber, threatening “devastating impacts” to forests in the rest of the world. China bans logging in many of its forests.

Airbus forecast that China will increase its commercial airline fleet by around 1,790 planes in the next 20 years, a $230 billion purchase representing more than 10% of global demand.

The Beige Book reported continuing economic growth and strengthening labor markets.
Intel said it expected sales of between $9.2 billion and $9.2 billion for the first quarter, raising previous forecasts.

Unemployment claims rose by 17,000, beating expectations by 2,000. The four-week moving average of claims rose from last week’s four-year low.

The U.S. trade deficit rose to $58.3 billion in January, the second-widest on record and wider than economists expected.


What We Are Watching For This Week:

Key earnings releases:

MONDAY: Hansen Natural (HANS)
TUESDAY: Washington Mutual (WM), Albertsons (ABS), Barr Pharmaceutical (BRL).
WEDNESDAY: Bear Sterans (BSC), Ross Stores (ROSS).
THURSDAY: Ford Motor (F), Morgan Stanley (MWD).
FRIDAY: No market movers.

On the economic front we have potential U.S. market movers with:

MONDAY: none.
TUESDAY: NY Empire State, Retail Sales.
WEDNESDAY: Current Account, EIA Petro., Housing Starts, Industrial Production.
THURSDAY: Leading Indicators, Jobless Claims, Phily Fed.
FRIDAY: Consumer Sentiment.

This Week’s Scans:

SOON TO BE UPDATED!

SETUPS

BREAKOUTS

BASES

SHORTS

This Week’s Word On Discipline:

“Right discipline consists, not in external compulsion, but in the habits of mind which lead spontaneously to desirable rather than undesirable activities.” — Bertrand Russell

DISCLAIMER:
Past Performance Is Not Indicative of Future Returns. All commentary provided
by The Growth Stock Report is for educational purposes only. The analysts and
employees or affiliates of The Growth Stock Report may hold positions in the
stocks or industries discussed here. This information is NOT a recommendation
or solicitation to buy or sell any securities. Your use of this and all information
contained in The Growth Stock Report is governed by the Terms and Conditions
of Use. Opinions expressed are our present opinions only. This material is based
upon information that we consider reliable, but we do not represent that it
is accurate or complete, and that it should be relied upon, as such.

The Material Decisions We Face

Welcome to this week’s edition of The Growth Stock Report!

Traders,

The overall market showed us some flashy moves for the week. We were happy to see our positions work for us, but we are beginning to get “that feeling” our conviction will be tested when (and not if) correction mode begins.

Our current position:

VERY CAUTIOUS, USE SMALL PROFIT TARGETS!

In this week’s edition you will find:

Where We Are:

Current positions:

XTO Energy (XTO), our best performing energy pick, is already beyond a 20% price target, so we’re sitting pretty with half a position and keeping an eye on overall sector health.

KCS Energy (KCS) put in another new high for the week, though is still short of our 20% target from its buy-point – which will hit at 18.10.

Statoil (STO), another energy buy candidate listed in the January 30th edition of The GSR is just a shade short of its 20% profit target of 18.97.

Metals USA (MUSA) moved higher for the week before backing off at the psychological 25 price. We have already hit our 20% mark and are riding with half a position.

Mannatech (MTEX) is benefiting from a strong healthcare environment and remains short of our 20% profit target of 27.

Palomar Medical Tech. (PMTI) also benefited from healthcare enthusiasm, though is short of a %20 profit target which we expect to be hit at 32.80.

We need to remind ourselves that our recent breakouts have been exceptionally good to us. We love it when our stocks only move up and not down, but the reality is we’re likely to see pullbacks in the near future. Stay the course.

Taking a look at the overall markets:


The Dow 30 and S&P 500 hit highs not seen since mid 2001.

The Nasdaq remains rangebound, short of a key high made 8 weeks ago. Healthy markets are led by tech issues. With key companies in techland reporting earnings this week, we should get a better gauge of overall sentiment here.

We continue to believe the key to this market will be found in the Semiconductor Index (SOX), which has been sluggish, but yet to give us a technical indication of real weakness.

Transportation ($TRAN) hit an all time high.


Commodity based issues ($DJAIG) are blowing up.

Banking stocks ($BKX) moved north of of its 10 month trend-line is looking healthy, though any drop below 98.02 may trigger heavy selling.

Internet stocks ($IIX) were quiet for the week, just holding on to a long-term trend line of over three years. Like the banks, any fall below the trend line (145.50) will likely entice selling.

Retail stocks ($RLX) as a whole are looking rather lackluster, though names from our top earners are blowing up: AEOS, BEBE, COH. We do NOT see an ideal buy situation for these stocks due to extended technical patterns and relatively weak sector performance.

Pharmaceuticals ($DRG) put in a healthy upside move, extending from a key downward trend-line.

Biotech ($BTK) fell apart, breaking down from over a four month range. The index is now parked at a critical trend-line level.

And Energy ($IXE) continues to tick higher, for its sixth week of consecutive highs.

Charts courtesy of Stockcharts.com.

Technically speaking, the bullish scenario for the Dow and S&P 500 has played out with new highs made, but the question is will it play out completely? Without participation from the techs, our answer i – NO!. So until techs break their range we are suspicious of the overall market.

Volume: Three days of Distribution for the Naz on the week, with two for the Dow and S&P 500 signals trouble. Unless we see accumulation from the institutions the situation is BEARISH.

Leadership: The top 10 industry groups from the 6 month RS screen are:

  • OIL GAS DRILLING EXPLO
  • HEALTH CARE PLAN
  • RESIDENTIAL CONSTRUCTI
  • STEEL IRON
  • RESORTS CASINOS
  • INDEPENDENT OIL GAS
  • SEMICONDUCTOR-BROAD LI
  • OIL GAS EQUIPMENT SVCS
  • TEXTILE MANUFACTURING
  • CONSUMER SERVICES

New Highs vs. Lows: Impressive New High showing for the NYSE, while the Nasdaq has been quiet with Highs and Lows. We do not look to much into these numbers at this juncture.

What We Like:

We like the way this market has gone for us. Though see nothing to commit new money to.

Our energy and commodity picks are due for a correction. Ideally this will happen after we hit all our 20% price targets, though any sign of distribution or a technical correction we will use as a signal to take a little off.

As much as we have loved or material based stocks, we have never liked the growing popularity of them. Sheep get slaughtered.

Our “aggressive small-cap” candidate from last week fell apart before signaling a buy. We love the fundamentals of this one, and will be keeping an eye on it for an invitation to get in on it.

We’re not going to call a top BUT we believe homebuilders are ripe for it. We care watching for any kind of “emotional turnaround” near these levels.

Due to our overall concern of for sustainable of upside market momentum, we list the following breakout candidates as “canaries in the coal mine”. All of the following possess top fundamentals:

EXP, HANS, NCI, OMM, OSG, PETD, THX, and URBN.

What Was Important About Last Week:

Drug makers Biogen Idec and Elan pulled their jointly produced Tysabri, after stating one patient died and another developed an often-fatal disease in combining Tysabri and Avonex, another Biogen MS drug.

Due to Microsoft’s one-time dividend payout of $32 billion in December, personal income rose to an all-time record gain of 3.7%. How ’bout dem apples!

New homes sales fell 9.2% to an annualized rate of 1.106 million units last month. The inventory of unsold homes was at its highest level on record. Some say it was the bad weather.

The No. 1 U.S. auto maker, General Motors reported a 12% drop in U.S. car and truck sales in February from a year ago. No. 2 auto maker Ford cut its quarterly production target after reporting a 2.9% decline in February sales. DaimlerChrysler’s U.S. unit, Chrysler, grew its market share, reporting a 7.5% jump in sales. Toyota sales rose 11%, and Nissan sales rose 10%.

The Institute for Supply Management Index slipped to 55.3 in February , the lowest level since October 2003. Any reading over 50 means the sector is expanding,

Federal Chair Greenspan told the House Budget Committee the U.S. economy could suffer if Congress didn’t act to fix the federal government’s budget deficit soon.

Retail sales in stores open a year or more were 3.6% higher than last February.

Nonfarm U.S. jobs grew by 262,000 jobs last month, the most since October and the fourth-biggest gain in the past five years.

The unemployment rate jumped back up to 5.4%, where it had sat for much of the latter half of 2004.

What We Are Watching For This Week:

Key earnings releases:

  • MONDAY: Internet Security Systems (ISSX), JDS Uniphase (JDSU), KLA-Tencor (KLAC), LSI Logic (LSI), Marvel Tech (MRVL), Motorola (MOT), Novellus Systems (NVLS), Rambus Inc. (RMBS), RSA Security (RSAS), Texas Instruments (TXN).
  • TUESDAY: Beazer Homes (BZH), Computer Associates (CA), Nextel Communications (NXTL), Varian Semiconductor (VAR).
  • WEDNESDAY: chinadotcom (CHINA), Xilinx (XLNX).
  • THURSDAY:Coach Inc. (COH), Mylan Laboratories (MYLN),
  • FRIDAY: no likely market movers.

On the economic front we have potential U.S. market movers with:

  • MONDAY: none
  • TUESDAY: none
  • WEDNESDAY: Beige Book, EIA Petro Status.
  • THURSDAY: Jobless Claims, Money Supply.
  • FRIDAY: none

This Week’s Scans:

SOON TO BE UPDATED!

SETUPS

BREAKOUTS

BASES

SHORTS

This Week’s Word On Discipline:

“Right discipline consists, not in external compulsion, but in the habits of mind which lead spontaneously to desirable rather than undesirable activities.”
Bertrand Russell

DISCLAIMER:
Past Performance Is Not Indicative of Future Returns. All commentary provided
by The Growth Stock Report is for educational purposes only. The analysts and
employees or affiliates of The Growth Stock Report may hold positions in the
stocks or industries discussed here. This information is NOT a recommendation
or solicitation to buy or sell any securities. Your use of this and all information
contained in The Growth Stock Report is governed by the Terms and Conditions
of Use. Opinions expressed are our present opinions only. This material is based
upon information that we consider reliable, but we do not represent that it
is accurate or complete, and that it should be relied upon, as such.