Monthly Archives: March 2006

MegaShift Stocks: Going Against the Grain

30
Mar 06
Despite the 15th straight interest rate hike causing ups and downs in the stock and bond markets this week, our MegaShift stocks are powering on through the earnings confession season with little to worry about so far. I have a specific example of why that happens in the Content on Demand MegaShift comments below, as one of our holdings took flight amidst the market’s volatility. A couple of our biotech holdings are also having a great week, and I’m going to tell you why we are not doubling down on our travel investments in the China MegaShift right now. But...

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Outshine the Rest: Invest in MegaShifts

23
Mar 06
I’ve been telling you for quite a while now that a move to 1313 on the S&P 500 would happen, and Tuesday’s intraday high on the S&P 500 of 1310.88 may be “close enough” to call the top of this rally. However, the shallow pullback of the last two days suggests some chance of a quick spike up to 1325 by mid-April, followed by an even sharper decline than I’ve been expecting. That’s the less likely scenario, but possible, thanks to the flood of liquidity the Fed is pumping into the money supply. If a spike rally happens, our large...

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Buying Opportunity in ViroPharma

20
Mar 06
On Friday, ViroPharma (VPHM) fell 33% on gigantic volume of nearly 50 million shares, compared to the normal 2.1 million shares. The stock was down a bit more today, again on huge volume of 29 million shares. The company only has 68.6 million shares outstanding, so it’s turned over more than its entire capitalization in two days. This on news that may make a difference two years from now, or may turn out to be trivial. The issue at hand is that the Office of Generic Drugs, part of the Center for Drug Evaluation and Research, may change the requirements...

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Battling a Bear Market with MegaShift Stock Ammo

09
Mar 06
The S&P 500 was range-bound between 1280 and 1300 for a long time, frustrating both bulls and bears, but this week may mark the change. A weekly close tomorrow below 1280 would suggest this downturn has just begun, with 1260, 1245 and 1225 likely targets by mid-April. I don’t think this leg down will get worse than that — it’s the June to October period that should really hurt. Our Plan for 2006 In the next few weeks: While my current market outlook could be considered bearish, I do believe there are many opportunities to make money in 2006. I...

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An Update on Our Holdings

02
Mar 06
The last couple of days sum up this market to a T — range-bound and reactive to every little bit of information that comes along. Tuesday’s weakish numbers for consumer confidence, home sales and manufacturing clocked the market for its worst loss in five weeks. The S&P 500 went to 1280, cracking the 1283 support level I mentioned in last week’s Radar Report. But it didn’t stick, as Wednesday’s better numbers on consumer incomes and spending, and a different take on manufacturing, pushed it right back up to 1290 again. If the S&P can close back over 1295, it could...

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