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Sterling
Weekly for January 9th, 2006
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The overall
market started 2006 on a positive
note, with the Dow Jones Industrial
Average finishing the week at
a 4 year high. My thoughts on
the overall market continue
to be very straight forward.
The stock market is a reflection
of expectations for the future.
The overall economy is doing
well and looks as if it will
continue to do well, and the
overseas situation in Iraq appears
to be progressing in the right
direction. Thus the future looks
good and the market should continue
to perform positively as a result.
however it does not mean there
is not risks for future performance.
The domestic political climate
needs to remain stable with
the tax cuts that helped spark
the current economic expansion
(growth) need to be extended
and not allowed to expire and
there needs to be continued
progress in reforming parts
of the government and economy
that are inefficient. The Bottom
Line: I am expecting the overall
market to remain strong and
the Dow Jones Industrial Average
to set new record highs later
this year.
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I
have inserted a weekly chart on
the Amex Biotech Index 'BTK' below.
The Amex Biotechnology Index 'BTK'
is an equal dollar weighted index
designed to measure the performance
of a cross section of companies
in the biotechnology industry
that are primarily involved in
the use of biological processes
to develop products or provide
services. Such processes include,
but are not limited to, recombinant
DNA technology, molecular biology,
genetic engineering, monoclonal
antibody-based technology, lipid/liposome
technology, and genomics. The
BTK Index was established with
a benchmark value of 200.00 on
October 18, 1991. The components
of the 'BTK' include: Cephalon,
Inc. 'CEPH', Vertex Pharmaceuticals
'VRTX', Celgene Corp. 'CELG',
Gilead Sciences 'GILD', Millenium
Pharmaceuticals 'MLNM', Biogen
Idec 'BIIB', Human Genome Sciences
'HGSI', Protein Design Labs 'PDLI',
Genentech Inc. 'DNA', Amgen Inc.
'AMGN', Genzyme Corp. 'GENZ',
Enzon Pharmaceuticals 'ENZN',
Chiron Corp. 'CHIR', Medimmune
Inc. 'MEDI', Affymetrix Inc. 'AFFX',
Applera Corp-Celera Genomics 'CRA'
and Invitrogen Corp. 'IVGN'. Additional
infomation on the 'BTK' and its
components can be found at the
Sterling Investment's page covering
the Amex Biotech Index 'BTK' by
clicking (here).
It appears that the 'BTK' is in
the process of forming a very
long term cup pattern. If the
'BTK' closes above a level of
765.61 then it will have completed
the cup pattern. If this cup pattern
is completed then we would expect
the 'BTK' to continue to move
higher over the couse of the next
couple of years with a long term
target of 1,234.93 Currently I
do not see anything that is preventing
the 'BTK' from moving towards
the 765 level, as a result I think
the long term prospects for the
BTK remain very positive. |
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Sterling
Investment Services has recentlypublished
a report on the Philadelphia Gold
& Silver Index and its components.
This report is available to the
subscribers and trial subscribers
of our daily newsletter the Prime
Stock Newsletter. The report
can be accessed by subscribers
& trial subscribers here,
and additional information concerning
this report is available from
our home
page. |
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| Sterling
Calendars for the Week of January
9th, 2006 |
| Date: |
Comments: |
| 1/09 |
Alcoa,
Inc. 'AA' announces earnings after
the close. Est. $0.37 |
| 1/09 |
WD-40
Company 'WDFC' announces earnings.
Time n/a. Est. $0.35 |
| 1/10 |
Genetech,
Inc. 'DNA' announces earnigns after
the close. Est. $0.34 |
| 1/10 |
Infosys
Tech. 'INFY' announces earnings after
the close. Est. $0.52 |
| 1/10 |
Supervalu,
Inc. 'SVU' announces earnings before
the open. Est. $0.50 |
The
full earnings calendar for this
week can be found (here) |
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Prime
Update:
Sterling
Investment Services is an investment research
and money management firm publishing the
Prime
Stock Newsletter. The Prime
Stock Newsletter is a daily comprehensive
newsletter that is useful for investors
and traders alike. Whether you are looking
for short term trading opportunities ranging
from day trading to a couple of weeks
or if you looking to acquire a long term
portfolio at smart entry points. Subscriptions
are $50/month. A Free
2 Week Trial is currently being offered.
Highlights
from Recent editions of the Prime
Stock Newsletter |
| Recommendation |
Date |
Entry
Point |
Recent
Close or Exit Price |
Profit* |
Note |
| Advanced
Micro 'AMD' |
Nov.
7th |
$24.63 |
$33.78 |
$9.15 |
Should continue
to move higher. |
| Vertex
Pharm. 'VRTX' |
Dec.14th |
$27.26 |
$31.29 |
$4.03 |
Should still move
higher. |
| Capital
One 'COF' |
Dec
19th |
$85.25 |
$88.56 |
$3.16 |
Held overnight and
sold the next day |
| * The
per share PROFIT is a theoretical
calculation based upon the opening
price the day the recommendation is
published and the intra day high (or
low for short sales) on the exit day.
The exit day is determined based upon
the application of our "Rules
for Trading", the implementation
of "stops" within our stated
policy, and may not reflect the complete
or full movement of the underlying
recommendation. |
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Dow Jones Industrial
Average (INDU)
Current
Opinion:
Closed @ 10,959.31 Last Signal:
Called Higher with the close of 10,823.72
on December 13th.
Current Expectations: I think the
end of the year weakness is over for
the market. I am expecting the Dow Jones
Industrial Average to move higher and
test 10,940.55 on a closing basis.
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The
S&P 500
Current
Opinion: Closed
@ 1,285.45 Last Signal: Called
higher with the close of 1,267.43 on December
13th. Current Expectation: I am
expecting the S&P 500 to continue
to move higher and test
1,312.54 on a closing basis.
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The
NASDAQ 100 (NDX)
Current
Opinion:
Closed @ 1,734.99 Last Signal:
Called Higher with the close of 1,679.93
on January 3rd. Current Expectations:
This index was hit harder by the end of
the year selling, declining more than
the other major indices. I am now expecting
the NDX to continue to move higher and
test 1,751.45 on a closing basis. |
CBOE
Ten Year Treasury Index (TNX)
Current
Opinion: Closed
@ 4.379% Last Signal:
Called Lower after the close of trading
on December 16th with a close of 4.448%
Current Expectations:
This index should move lower and test
then 4.176% on a closing basis. Note:
Our technical indicators are warning that
this index may turn higher within the
next few days. |
Disclaimer:
The Sterling Investments series of newsletters is produced by Sterling
Investment Services, Inc. All information
used in the production has been obtained
from sources believed to be reliable and
accurate. Sterling Investment Services
does not warrant or assume any liability
for inaccuracy of the information used
to produce our publications. To receive
further information on these services
please visit our web page at: www.sterlinginvestments.com
If you would like to contact us our fax
# is (404)-816-8830 Email address is:
enelson@sterlinginvestments.com Sterling
Investment Services may hold positions
in the securities recommended or may be
providing consulting services to the companies
mentioned within this report. |
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