Wednesday, January 21, 2009

Daily Stock Picks: NVTL, SXE, APOL, IOC, DISCA [Already Double Talk?]

The stock markets today experienced a nice sharp rally off of very oversold conditions. Chart wise the market would have been much better served opening lower, trading way down, near the November lows, and then rallying with a slight close on the day. However that didn't happen and all I see here is a short term bounce. Don't look now but LIBOR (bank to bank loan rates) is on the rise again as the question of the health in the banking sector is once again brought into question.

RankPrevious RankSymbolMLT+SwingDays in Top 5
#1(#3 +2)NVTL0.886
#2(#2 --)SXE0.866
#3(#5 +2)APOL0.746
#4(#7 +3)IOC0.721
#5(#6 +1)DISCA0.671


The market now must try and buy time as it awaits the comprehensive plan that continues to be hinted at in a couple of weeks. The secrecy of this, as of right now, pie in the sky plan stands in stark contrast to the goals Obama himself stated today about being as transparent as possible. If you want to gain people's confidence why not come out and tell us about this plan, how you're coming to the tough decisions, and allow people to comment on it even if that plan is still being worked on? Why is the transparency in keeping it secret? Where is the benefit of doing so? I hate being so critical so early, but his press conference today was about transparency, and yet the most important thing he can be doing right now is kept behind closed doors: Why?

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