Important Market Update: Lange Financial Services. Bullish. Stock List Updated.

[ 0 ] March 31, 2011 |


The market has now rallied more than 700 points from the close on February 18, 2011 of DOW 11,613 to 12,350 today. The 2011 high is 12,391. The Russell 2000 Index reached the highs made in October 2007 today as well. A new 2011 high for the DOW seems immininent.

We put out a strong buy memo on the blog during the day of the recent bottom, on March 16, 2011 and followed up by strong supporting buy memos on March 18th and March 25th.  The DOW is up days eight of the last 10 days, since the lows created by the ” Panic of the Professionals” ( see post on March 23th ). The previous Memos included numerous “favored stock” buy recommendations, all of which have appreciated substantially.

At this juncture, many market pundits remain cautious, as they have been for months. Looking forward, we remain bullish as we have been since the July-August 2010 bottom. Higher prices are likely in the months ahead. The S&P is selling at less than 13 times next year’s earnings forecasts. A valuation of 15x earnings seems realistic over the next 6 to 12 months. Given the recent strength, failure to exceed 12,400 could easily lead to a period of profit taking/pullback of 1%-3%. Some profit taking is warranted on further strength regardless of near term direction.

Some favored issues that should be accumulated during periods of weakness are:

Cliffs  ( CLF )
Walters Energy  ( WLT )
Alpha Natural  ( ANR )
IBM  ( IBM )
Apache  ( APA )
Anadarko  ( APC )
Devon Energy  ( DVN )
Qualcomm  ( QCOM )
American Express  ( AXP )
MetLife  ( MET )
3M  ( MMM )
Deckers Outdoor  ( DECK )
McDonalds  ( MCD )
Federal Express ( FDX )
Google  ( GOOG )
Oracle  ( ORCL )
Wellpoint  ( WLP )
Whirlpool  ( WHR )
Apple  ( AAPL )

We want to note that many of the above selections may be quite volatile and should be purchased during pullbacks with the objective being to establish a good average price on the position.


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Category: Markets and Trading