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| Leeb's Market Forecast | |
| April 30, 2008 | |
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| Dear Investor,
Leeb’s Ground-Floor Trader Weekly Update The overall stock market continued to move higher, step by step, in the past week, despite some negative news. This confirms our view that for now, the market has bottomed – or, at least, is supported by a strong floor.
We saw particularly impressive support today. Despite a wave of negative headlines, which knocked the S&P 500 lower at the start of trading, stocks began clawing their way back in the afternoon.
When stocks shake off a triple whammy of bad news -- consumer confidence dropped to its lowest point in five years, home foreclosures more than doubled (in the first quarter, vs. the first quarter of 2007) and home prices dropped 12.7% year over year (February's figure, reported today) – it's a good sign that investors may be looking toward better times ahead rather than wallowing in today's bad news. Advertisement How To Profit From Stocks On The Rebound Buying a stock that has been unfairly punished can be a great way to get a bargain. But how would you like take home fast, fat profits, and lower your long-term risk at the same time? Here's what we did with Western Digital. The stock had been punished along with most of the technology sector in January, yet its main product (disk drives) is one of the bright spots in the industry enjoying strong demand. After rebounding through February, the shares then surrendered much of their gains. So we took a leveraged position looking for a retest of the highs, ahead of the company's next earnings report. But here's where we played it safe. Rather than take a chance that earnings wouldn't be as high as everyone expected, we cashed in our position the day before for a nice gain of 27.7% in just 20 days. Of course, to take advantage of situations like this, you have to be able to act at the right time. That's why we issue trade recommendations in these cases by email. We also used leverage to amplify our gains. However, there's a lot to be said for our style of trading. In the years since we started, roughly 69% of our trades have made money - which is far more than most traders can say. Want to see for yourself how you can easily put such opportunities to work in your portfolio, and add some real juice to your returns? Take a look at some of the FREE information posted at ... Leeb's Aggressive Trader ------------------------------------- Are we among the bulls? Not exactly. Crude oil's continued advance is extremely worrisome, especially because we believe it reflects the reality that oil supply will be insufficient to keep up with demand in the coming years. Higher oil prices can't help but rein in the economic rebound that is the likely result of the Fed's aggressive policy of massive monetary stimulus. While the Fed is pushing on the gas pedal, higher commodity prices – especially oil -- are applying pressure to the brakes.
For that reason, we continue to predict a range-bound stock market. That means you'll need to be selective in search of lucrative investment opportunities. We continue to recommend overweighting energy and precious metals – and gold-mining stocks are especially attractive now, as they have taken a hit in the past two weeks, as gold has pulled back. In an era of rising inflation, gold is extremely likely to resume its bull market and push these share prices higher.
We're also keeping a close eye on bottom-fishing opportunities in the financial-services and housing sectors. History tells us that the best companies in down-and-out sectors tend to stage strong rallies that begin before those areas enter a clear recovery.
Until next week, Your Ground Floor Trader Team Advertisement How to make money staying out of some stocks. In volatile markets, here's how you can make better returns picking your entry points carefully and taking profits as they come... Micron Technology (MU) is a semiconductor maker whose products appear in PCs, servers and a wide range of consumer electronics. On April 2, we took advantage of the stock trading at a historically low price/book ratio. The stock has also been in the process of rebounding from a 52-week low - and it was supposed to report its quarterly results. Plus, there had been some positive news for the industry as a whole. Now, if this had been 1998, we might have bought this stock and held it for a year or more. But with today's uncertainty, we would rather take profits as they come. So 14 days later, when the stock was up nearly 11% above our entry price, we were quite happy to sell - instantly eliminating any risk that the price would pull back. Another example was our recent trade on Charles Schwab (SCHW). Schwab had limited exposure to the subprime meltdown and credit crisis, but its share price had been pulled down along with the entire financial industry. We expected that when the company announced good earnings there would be a rebound in the shares. So we bought the stock right before the earnings announcement, and sold it the next day for a profit of over 8% -- which is a great return considering our market risk lasted just over 24 hours. To get in on trades like these, check out Leeb's Ground Floor Trader program. It's easy to use. It takes very little time. You don't need much trading experience - because we give you all the help you need. It doesn't use complicated strategies like options. And it comes with a 60-day money-back guarantee. Just follow this link... Leeb's Ground Floor Trader ---------------------------------- This email was sent to LEMMETRY@GMAIL.COM. You are receiving this email because you have requested a free subscription to Dr. Stephen Leeb's Market Forecast. Click here to be removed from this mailing list. Click here to be removed from all of our promotional offers. TCI Enterprises, LLC 500 5th Ave., 57th Floor New York, NY 10110 Disclaimer TCI Enterprises LLC, The Complete Investor, Emerging Investments, Leeb ETF Trader, Leeb IPO Insight, Leeb's Aggressive Trader and their affiliated companies and publications ("TCI" or "Letters" or "Publications") are not registered as a broker dealer or investment advisers with the U.S. Securities and Exchange Commission or any state securities authority. Letters and their information and content providers make no representations or warranties of any kind in connection with the subject matter, performance or the suitability of the information contained in publications for any purpose and are not liable for the timeliness, accuracy, or completeness of the information contained herein. The information contained in publications is provided for general informational purposes, and is not a substitute for obtaining professional advice from a qualified person, firm or corporation familiar with your personal circumstances. Please seek the advice of professionals, as appropriate, regarding the evaluations of any specific security, report, opinion, advice or other content. TCI is not responsible for any trades placed by the recipients of TCI based on the information included therein. There can be no assurance that your portfolio or positions can achieve the indicated performance and therefore, the sample performance information should not be relied upon. Investment recommendations are not intended to be construed to be personalized advice, or recommendations to buy, hold, or sell mentioned securities and readers should consider their personal situation before making any investment. All opinions expressed and information and data provided therein are subject to change without notice. TCI, its officers, directors, employees, and/or associated entities may have positions in and from time to time make purchases, or sales of the securities discussed or mentioned in TCI. TCI shall have no liability for any e-newsletter that is lost, intercepted or not received by you in a timely manner, or at all, for any reason.  |
