06/06/2003 12:00 am EST
"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."