Replies to post #2979 on A.I.M. Users Bulletin Board (AIMUSERS)

[Foxlette]

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8:40AM: The futures are pointing to a higher open on a quiet pre-mkt session thus far....Of note, Home Depot (HD 43.42) is being downgraded by UBS Warburg to Hold from Buy on fears that Home Depot is changing too much too fast. Firm reduces price target to $42.50 from $50....On the economic front, Personal Income matched the consensus estimate with a 0.3% increase in April; Spending was up 0.5%, a bit less than the 0.7% consensus. Though slightly below consensus on the spending number, these data are unlikely to have any market impact. Futures reaction is muted.....
More economic reports today: Existing Home Sales and Conf Bd Consumer Confidence are both due at 10 ET....Overseas, European markets were higher while Asian markets were mixed....S&P 500 futures are +4.30, or 2.3 pts above fair value while Nas 100 PMI is +5.72.

[jibes]

ET

That is a very real scenario to watch out for. If a stock is falling and getting into trouble you probably would not know it right away. I would not be so quick to just throw my other stocks money into the one thats falling. Find out whats going on. Is the company in trouble? That would be something to watch out for. If it is and you catch it soon enough it could be replaced with another stock without too much damage.

I did a backtest on these 4 stocks ARTI PALM BWS and ZQK.
The backtest was for 21 months. All except PALM were good. PALM though, went from approx $50.00 to $1.50 and ended up at around $4.00. I just followed the formula and still ended up ahead. I don't have the chart here but I believe buy and sell ended up 10% and I was up %20. I was very pleased with the results considering what PALM did.

So. In all things choose those stocks carefully.

Jibes