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The Daily Stock Report April 12, 2009

December

9th

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The banking sector moved up the whole market after WFC, Wells Fargo announced a $3 billion 1st quarter profit. The indices moved up 3-4% and this starts the whole market moving up another leg. It is likely that the market continues moving up from here that could last for weeks even though the press is playing up the fear that negative earnings could cause a lot of volatility. The market has been anticipating negative earnings surprises for some time now and any drop in the market is likely to be met with the “buy on the dip” buyers.

Most all the stocks on the wish list and the stock list below are likely going to continue their bull runs. The banking stocks that were short on the last attempt were covered at losses and more stocks triggered buy signals. The general direction should be up and what has been posted toward the bottom of this news letter about “expecting a substantial rally this year” has likely started. Any negative economic of financial news is not likely to have near as substantial impact as in previous months.

I am still expecting some sort of substantial rally in the stock market sometime this year mostly driven by the massive stimulus that has already been poured into the system plus the planned stimulus package being proposed now. Longer term though, in a couple years down the road, no doubt the taxpayer is going to have to pay for such the high debt amounts that the US government (and other countries) have taken on.

So tax rates probably will rise in coming years, interest rates will very likely have to rise as inflation surfaces and likely the bear market resumes sometime down the road. But we don’t have to be stuck in a miserable cycle like most investors. If you have been uncomfortable shorting stocks, which most people are, try to learn this technique, it will be a useful tool in the coming years.

The sentiment could even evolve into investors and corporations’ believing the economic downturn end is in sight and this bull run could bring a lot of investors into the market from the sideline with their trillions of dollars in their mattresses. Unfortunately for most of them, they will likely bring that money in toward the top of the bull run, if history continues to repeat itself.

Oil index closed up 4.2% to close at $52.19. So far, this index is still creating lower lows and lower highs.

For more tips and information about How to Buy Stocks, check out http://www.tradestocksamerica.com/daily-stock-pick-results.php.