Stock investing, and stock trading:

As we noted in yesterday's stock market post (see copy below), the stock market has been generally weaker today. It broke the low of the prior trading day, and so far stock prices are having difficulty to rise. While the indicators and averages in daily stock market price charts are rising, there are potentially some dangers. If the stock market were to rise before eventually retreating, the sp500 index price pattern seems to anticipate sellers around 2% higher from the current stock market prices. The 24 days moving average is around 1185 area, which places it at 40 points lower than the current stock market prices which are around 1225. The 2% higher prices are around 1250. If we look at the situation from the perspective of position traders, the stock market might be in a situation where the down side risk at the present time might be in an area where the expected rewards are probably less than or equal to the risks, which would not be a good situation for immediate stock investing. In addition, while the stock market has been remarkably resilient (particularly in the last two days with a rising dollar), there can are however be limits to market resiliency. It is therefore not surprising that certain hot rising stocks have been having difficulty to rise today. This has not been limited to individual stocks, and not to today stock trading session. for instance The leading EFT sector in the stock market has been the Nasdaq-100. One may note that the Nasdaq-100 index has been trading essentially flat over the last 5 days or so.

The current conclusion seems to be that stock market investors might be anticipating a limited upside potential, and a rising risk to the downside. It is therefore not unreasonable to expect that such stock investors and stock traders might wait for a retreat to consider buying, or might wait for the passage of time so that current prices would become better in terms of parameters such as risk, reward and probability of success.

If the hot rising stocks experience difficulty rising, the weaker stocks would find it even harder to rise, and might lose in such stock market environment. Weaker stocks might also be targeted by short stock sellers, which can make the supply of stocks higher than what it would have been should such short stock sellers delay their selling decisions.

A stock screener gave us a list of stocks that have a negative return on equity, and that are trading below their 200 moving average, with a reasonably liquidy. Such stocks might be what stock short sellers look at when they consider building their short selling stock lists. A list of stocks that passed the criteria in the stock screener is below.

Below is a copy of yesterday's post (mentioned in above post).

The commodity and basic materials stocks have been one of the hottest areas in the stock market over the last 7 years or so. These stocks can be affected by the value of the US dollar, and their bull market has been influenced in a major part by the weakness in the US dollar.

While, generally the prices of these stock are negatively correlated with the US dollar, this past Friday, the US dollar improved markedly, while the sp500 stock index actually rise. This is not common, and is a welcome outcome for US stock investors. It can however make certain stock market sectors vulnerable if the dollar were to continue to rise. Therefore, we consider it important to keep an eye on the US dollar on the eve of tomorrow stock trading session, and if the dollar does not weaken, we have to keep a special eye stocks from the basic material sectors as they may be affected on Monday.

Since there are thousands of such stocks, it is not practical to watch and analyze all of them, but keeping an eye on the most active stocks in this sector might provide warnings on any potential retreat. The list below contains examples of such stocks.

A way that some investors and stock traders hedge a divergence between the US dollar and these sectors of the stock market, is shorting a basic material EFT stock if they want to hedge against a rise in US dollar.

In a stock brokerage account, one can also take a position on the US dollar by buying a long-dollar stock ETF. However the gyrations that happen during the nights in the USD dollar may not be captured. Note that this can present some problems, if for instance if the dollar were to move significantly overnight, it can result in morning gaps in US dollar stock EFTs, which trade during normal stock market hours only.

Ticker Company
REVU Princeton Review Inc.
EEE Evergreen Energy, Inc.
RDN Radian Group Inc.
PCBC Pacific Capital Bancorp
COMV Comverge, Inc.
EPCT EpiCept Corporation
SUF Sulphco Inc.
GSI General Steel Holdings, Inc.
DRL Doral Financial Corp.
PMI PMI Group Inc.
CLWR Clearwire Corporation
KRY Crystallex International Corp.
CYCC Cyclacel Pharmaceuticals, Inc.
YRCW YRC Worldwide Inc.
MVIS Microvision Inc.
EXEL Exelixis, Inc.
HGSI Human Genome Sciences Inc.
SNV Synovus Financial Corp.
EXH Exterran Holdings, Inc.
GRS Gammon Gold, Inc.
DNDN Dendreon Corp.
OXGN Oxigene Inc.
PHH PHH Corporation
ANPI Angiotech Pharmaceuticals Inc.
CYTX Cytori Therapeutics, Inc.
JOE The St. Joe Company
OPXT Opnext, Inc.
CWTR Coldwater Creek Inc.
WL Wilmington Trust Corporation
AFFX Affymetrix Inc.
CEDC Central European Distribution Corp.
PPHM Peregrine Pharmaceuticals Inc.
X United States Steel Corp.
LEAP Leap Wireless International Inc.
VRTX Vertex Pharmaceuticals Incorporated
MNKD MannKind Corp.
ALKS Alkermes, Inc.
JNY Jones Apparel Group, Inc.
LYV Live Nation Entertainment, Inc.
RF Regions Financial Corp.
BP BP plc
ARNA Arena Pharmaceuticals, Inc.
LVLT Level 3 Communications Inc.
PVTB Privatebancorp Inc.
NOVL Novell Inc.
SYNM Syntroleum Corp.
AONE A123 Systems, Inc.
RRI RRI Energy, Inc.
ZION Zions Bancorp.
ELN Elan Corp. plc
ANDS Anadys Pharmaceuticals Inc.
PVA Penn Virginia Corp.
IRM Iron Mountain Inc.
HAFC Hanmi Financial Corp.
BCON Beacon Power Corporation
CPST Capstone Turbine Corp.
SNSS Sunesis Pharmaceuticals Inc.
WAL Western Alliance Bancorporation
ALXA Alexza Pharmaceuticals Inc.
S Sprint Nextel Corp.
MI Marshall & Ilsley Corporation
MAS Masco Corporation
CLGX CoreLogic, Inc.
DYN Dynegy Inc.
RAD Rite Aid Corp.
RYL Ryland Group Inc.
CRBC Citizens Republic Bancorp, Inc
GDP Goodrich Petroleum Corp.
CLNE Clean Energy Fuels Corp.
MWA Mueller Water Products, Inc.
JAG Jaguar Mining Inc.
BPZ BPZ Resources, Inc.
OSG Overseas Shipholding Group Inc.
ERTS Electronic Arts Inc.
GSIC GSI Commerce Inc.
PHM PulteGroup, Inc.
DXCM DexCom, Inc.
XRA Exeter Resource Corporation
GMXR GMX Resources Inc.
CRK Comstock Resources Inc.
BAC Bank of America Corporation
ACOR Acorda Therapeutics, Inc.
ENER Energy Conversion Devices, Inc.
AMLN Amylin Pharmaceuticals, Inc.
CTIC Cell Therapeutics, Inc.
VMC Vulcan Materials Company
PDC Pioneer Drilling Co.
QTWW Quantum Fuel Systems Technologies Worldwide Inc.
PEIX Pacific Ethanol, Inc.
HERO Hercules Offshore, Inc.
BQI Oilsands Quest, Inc.
BANR Banner Corporation
FBP First Bancorp
SGMS Scientific Games Corporation
SVNT Savient Pharmaceuticals, Inc.
DPTR Delta Petroleum Corp.
MFC Manulife Financial Corporation
HOV Hovnanian Enterprises Inc.
BIOD Biodel Inc.
NGBF New Generation Biofuels Holdings, Inc.
OCNF OceanFreight, Inc.
ALTH Allos Therapeutics, Inc.
SOMX Somaxon Pharmaceuticals, Inc.
STEM StemCells Inc.
JTX Jackson Hewitt Tax Service Inc.
XNPT Xenoport, Inc.
MELA MELA Sciences, Inc.
XSEL Xinhua Sports & Entertainment Limited
CHRS Charming Shoppes Inc.
DSCO Discovery Laboratories Inc.
IKAN Ikanos Communications, Inc.
WEST Akeena Solar, Inc.
AIB Allied Irish Banks plc
ROIAK Radio One Inc.
FCEL FuelCell Energy Inc.
VRML Vermillion, Inc.


Recent Entries

Recent Comments