"Our Buyback Premium Portfolio is beating the S&P 500 by
over 119.18% since its inception (August 2, 2000); the portfolio is up
86.22% since inception (August 2, 2000) vs. a 32.96% decline in the S&P 500
over the same time frame," notes David Fried, editor of
The Buyback Letter. "We are adding three new
stocks to this portfolio: Polymedica Corp. (PLMD NASDAQ); Pre-Paid Legal (PPD NYSE),
which underwrites and markets legal expense
plans; and Archstone-Smith (ASN NYSE), a
real estate investment trust that manages apartment communities. All three
stocks are rated as buys."
"Small-cap stocks in a stronger position than large-caps," says technician
John Murphy of stockcharts.com . "That's good for
two reasons. One is that small-caps usually lead large-caps in the early stages of a
market bottom (and economic recovery). Secondly, small-caps account for a large part of
market breadth figures. [There are a lot more smaller stocks than bigger
stocks]. That also confirms the recent signs of improvement in market breadth
figures. The second strongest stock index has been the Nasdaq Composite, which
has also broken out to the upside. We've commented many times on the beneficial
results of Nasdaq leadership. That suggests a further rally to the highs formed
at the start of 2002. We think there's a strong chance the Nasdaq will get
there. The Nasdaq is helping pull the rest of the market higher as
well."
Says Richard Rhodes, editor of The Rhodes Report,
"We have taken long positions in two energy related stocks. Diamond Offshore
(DO NYSE) recently broke above its 200-day moving average,
with prices following through into resistance between $23-$24. Prices continue
to be strong, and we feel that any correction will be a short-term affair with
the $21 level holding any and all price declines. Our initial objective is $23-$25
in the days and weeks ahead. We are also long Amerada Hess (AHC NYSE). The recent rise in prices broke higher through
the intermediate-term 90-day moving average, and is testing resistance once
again. Our objective is $56."
"It took a long time coming, but today the S&P 500 index finally
confirmed that we're in a new bull market for stocks," notes Richard
Band, editor of Profitable Investing
. "The market closed above 965 in the S&P 500 ceiling that had
turned back last summer's first rally off the July lows. With the bull confirmed,
you should now close out any remaining hedges (such as short sales you may
have entered in the NASDAQ 100 Qubes). In the meantime, if you're
underweighted, you might nibble at drug giant Pfizer (PFE NYSE),
which is trading at a reasonable 18 times this
year's estimated earnings. PFE also yields nearly 2%. Pay up to $33. I'm looking
for PFE to climb into the low $40s within the next 12 months."
"When low-priced 'garbage' is rallying, it's a sure sign we're in another speculative bubble," says Mark Leibovit, editor of
VRTrader. "But, when will the bubble pop? The answer
is that the market will tell us, though we may
not catch the ultimate high in the process.
What we're experiencing is a 'squeeze play' where
shorts are being 'forced' to cover and the news
is being doctored up to look better than it is.
Greed follows greed and fear that you'll be the last guy on the block
long is driving the buying. We're in a time frame for top. The top should
be by a technical market event or a news
item that shakes the very foundation of the
rally. If I was long the market, I would be out
regardless. Not discounting the risk that gold
could pull back, I'm very convinced we're going substantially higher, so I'm
hanging in there."
