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Sterling
Weekly for October 24th, 2005
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Well it is Wednesday morning
and it has been a busy week,
so I'm getting this out a little
late this week. As I sit here
on a chilly morning in Atlanta
and think about the recent market
and where it is going a couple
of things come to mind. 1)
Monday's rally brought back
some nice memories of the late
'90s when the Dow would routinely
move 100+ points within a day.
While we could, and probably
will, see a return to higher
volatility; I seriously doubt
we will see a return to the
days when Intel, Microsoft,
Cisco, and the other high flyers
from those days make routine
big, $1+ daily moves. This is
primarily due to the fact that
all these companies forward
split their shares when they
were trading at ski high valuations.
These companies now need to
be so huge in order to post
any significant per share numbers
that there are very unlikely
to be any surprises that are
not already priced into their
shares. The next generation
of big gainers and volatile
trading stocks will be a whole
new group of companies. Think
of names like SanDisk 'SNDK'.
2) This market
has been moving sideways for
the last 18 months plus, and
has really been directionless
since this spring. I truly believe
politics is the single biggest
influence on the market. Alan
Greenspan in a recent speech
stated the reduction in burdensome
regulations allows businesses
to grow and expand, creating
economic growth and new jobs!
Deregulation is a function of
politics. One of the main reasons
the market is going sideways
is that there is no clear signal
coming from politicians. The
White House is distracted by
the problems surrounding the
CIA leak and being undermined
by members of its own party
in Congress. And as my friend
Adam says, the Democrats really
do not stand for anything right
now except opposition to the
President. By the way, Adam
is a hardcore Democrat. I know
my buddy in Denver who reads
this newsletter doesn't think
I should discuss anything political;
but mark my words, until the
political situation clarifies
(either for the better or worse)
do not look for the market to
move out of either end of its
recent trading range.
In the short term, I am looking
for the market to test the upper
end of its trading range, but
don't see it moving above there.
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| Sterling
Calendars for the Week of October
24th, 2005 |
| Date: |
Comments: |
| Oct.
24 |
AFLAC
Inc. 'AFL' announces earnings after
the close. Est. $0.64 |
| Oct. 24 |
Altera Corp. 'ALTR'
announces earnings after the close.
Est. $0.20 |
| Oct. 24 |
American Exp. 'AXP'
announces earnings. Time N/A. Est.
$0.71 |
| Oct. 24 |
Clear Channel
Comm. "CCU' announces earnings
after the close. Est. $0.38 |
| Oct. 24 |
CNET NEtworks 'CNET'
announces earnings after the close.
Est. $0.04 |
| Oct. 24 |
Kimberly Clark 'KMB'
announces earnings before the open.
Est. $0.95 |
| Oct. 24 |
Texas Inst. 'TXN'
announces earnings after the close.
Est. $0.40 |
| Oct. 25 |
AAON 'AAON' announces
earnings before the open. Est. $0.33 |
| Oct. 25 |
Amazon.com 'AMZN'
announces earnings after the close.
Est. $0.10 |
| Oct. 25 |
Ameritrade 'AMTD'
announces earnings before the open.
Est. $0.22 |
| Oct. 25 |
Bellsouth 'BLS'
announces earnings before the open.
Est. $0.46 |
| Oct. 26 |
Amerada Hess 'AHC'
announces earnings. Time N/A. Est.
$3.31 |
| Oct. 26 |
Amylin Pharmaceuticals
'AMLN' announces earnings after the
close. Est. ($0.58) |
| Oct. 26 |
Anheuser-Busch 'BUD'
announces earnings. Time N/A. Est.
$0.81 |
| Oct. 26 |
ConocoPhillips 'COP'
announces earnings before the open
Est. $2.57 |
| Oct. 26 |
Diamond Offshore
'DO' announces earnings. Time N/A
Est. $0.40 |
| Oct. 26 |
Kerr-McGee 'KMG'
announces earnings. Time N/A Est.
$2.61 |
| Oct. 27 |
AirTran Holdings
'AAI' announces earnings before the
open. Est. ($0.08) |
| Oct. 27 |
Georgia Pacific
'GP' announces earnings before the
open. Est. $0.70 |
| Oct. 27 |
KLA-Tencor 'KLAC'
announces earnings after the close.
Est. $0.49 |
| Oct. 27 |
McAfee, Inc. 'MFE'
announces earnings after the close.
Est. $0.29 |
| Oct. 27 |
XM Satellite Radio
'XMSR' announces earnings before the
open. Est. ($0.66) |
| Oct. 28 |
Anadarko Petro 'APC'
announces earnings before the open.
Est. $2.88 |
| Oct. 28 |
Bristol Meyers 'BMY'
announces earnings before the open.
Est. $0.33 |
| Oct. 28 |
Overstock.com 'OSTK'
announces earnings before the open.
Est. ($0.51) |
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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
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or if you looking to acquire a long term
portfolio at smart entry points. Subscriptions
are $50/month. A Free
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Highlights
from Recent editions of the Prime
Stock Newsletter |
| Recommendation |
Date |
Entry
Point |
Recent
Close or Exit Price |
Profit* |
Note |
| Caterpillar 'CAT'
shorted |
Oct.
13 |
$54.56/share |
$48.25 intra day
low on October 21st |
$6.31
|
Very negative chart
ahead of earnings. |
| XM Satellite
'XMSR' shorted |
Oct.
12 |
$32.42 |
$29.28 intra day
low on Oct. 19th |
$3.14 |
Another 'CAT'? |
| Amgen
'AMGN' shorted |
Oct
6 |
$78.01 |
$73.51 intra-day
low on October 13th. |
$4.50 |
Should move lower. |
| * 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. |
|
Dow Jones Industrial
Average (INDU)
Current Opinion:
Closed @ 10,348.10 Last
Signal: Called higher on October
18th with the previous day's close of
10,348.10
Current Expectations: I am expecting
the Dow Jones Industrial Average to
move higher and test 10,378.03 and then
10,441.11 on a closing basis.
|
The
S&P 500
Current Opinion:
Closed @ 1,190.10 Last Signal:
Called higher on October 18th with
the previous day's close of 1,190.10
Current Expectation:
I am expecting the S&P 500 to move
higher and test
1,205.10 and then 1,210.20 on a closing
basis. |
The
NASDAQ 100 (NDX)
Current Opinion:
Closed @ 1,549.88 Last
Signal: Called higher on October
18th with the previous day's close of
1,549.88
Current Expectations: I am expecting
the NDX move higher and test 1,558.84
and then 1,568.96 on a closing basis. |
CBOE
Ten Year Treasury Index (TNX)
Current Opinion:
Closed @ 4.489% Last
Signal: Called higher after the
close of trading on September 12th at
4.169% Current Expectations:
This index should continue to move higher
and test then 4.624% |
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
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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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