Shrewd Investing

[Shrewd Dude]

Our Top 50 Watch Stocks – August 13, 2004 – updated daily

Yesterday proved to be another very disappointing day with tech problems and high oil prices again impacting on market sentiment.

Well what about today? U.S. stock futures are certainly indicating that we could see a flat but positive opening to today’s trading helped by a solid financial report and outlook provided yesterday by Dell after the closing bell.

Please however remember that today is Friday the 13th, oil continues to hover at near record peaks and terrorist fears are once again to the fore. While another sell-off could therefore be on the cards, a technical rebound is overdue although whether that will happen without a trigger such as a huge market capitulation, is not known. Worth perhaps noting that the market's top was reached when 90% of stocks were trading above their 200 day moving averages and that this figure has now fallen to less than 50%. Also the short interest is now at enormous levels and the market, particular the tech sector, has had an almost uniform sell-off, irrespective of the quality of the company or its earnings.

Watch today for the release of several key economic indicators reflecting inflation (PPI) and the consumer (consumer sentiment).

If you have any views or comments on any of our Watch Stocks please post them in the Forums section of our web site which can be accessed via the following link:
http://www.shrewdinvesting.com/forums.asp

Today’s Additions: EFJI; EMA; MTRX.
Watch Stocks: EFJI; RFMD; ECLG.
Possible Trend Reversals: AMCC; EVCI; ADRX; MVL; CKFR; EYE; APOL; PACR; MOSY; SWW; HILL; IDEV; WGAT; IDWK; IWOV; LSCP; CREE;.
Failures: DCEL; CYTK; LOUD; DSPG; SSTI; SWKS; IVAC; SGTL; TKO; EBKR; RETK; AVNX; CORI; RDWR; EFII; HELX; SANM; CMGI; UTSI; ALVR; ARTX; ARRS; ROG; MSPD; CGNX; MAMA; VISG; PTIX; ANDW; LSI; OVTI; STKL; DRIV; PLXT; BKHM; WEBX; CNXT; JCOM.
Deletions: SONSE (now SONS.PK – while this stock could have considerable potential if the Company can, by the end of the current month provide restated accounts & quarterly figures, we do not include in our Watch List stocks quoted on the Pink Sheets)

Useful Links
1. AM Market Call from CNN: http://www.shrewdinvesting.com/links2.asp?LinkId=292
2. Pre-market activity: http://www.shrewdinvesting.com/links2.asp?LinkId=806
3. Companies reporting today: http://www.shrewdinvesting.com/links2.asp?LinkId=755
4. Market Commentaries: http://www.shrewdinvesting.com/links.asp?CatId=329


Trade to Win

The Shrewd Dude

Notes
1. Watch Stocks are not stock tips but stocks that we have selected to monitor for a trend reversal. While selected stocks will therefore show considerable volatility they should provide many trading opportunities.
2. Possible Trend Reversals are previous Watch Stocks that we believe have significant potential and could be at the initial stage of an upward trend.
3. Failures are stocks that we continue to like but the trend reversal may be erratic or have broken down.
4. As a rule of thumb a movement of 2% (can be over one or more days) is required for a stock to move between the above categories.
4. Deletions are stocks that are being removed from our Top 50 Watch Stocks to make way for new additions and their deletion does not mean that we feel they lack further potential.

IMPORTANT: Until any downward trend has been reversed, buying highlighted stocks will carry additional risks. We recommend waiting for 10-15 minutes after open before placing an order. Please remember the old saying that amateurs trade the open while pros trade the close and that as a rule you should not chase after a stock nor should you fall in love with it. Also while all stock picks are subject to our disclaimer, Penny Stocks, particularly where trading volumes are low, can and will have greater price volatility. Remember, if trading was easy, everyone would be doing it and everyone would be rich.

Disclosure LONG: n/a