Stock Trading Secrets -pt1

Daily Stock Report for Wednesday Morning, April 14, 2010 pt1

US stocks are moving up in the classic “Goldilocks” environment where everything is just right but as with any financial market, things could change real fast, especially as unstable as the world can be.

The US indexes moved up in small increments today that signifies the low volatility steady uptrend of a marching bull. As mentioned in recent reports, this is the environment that is ideal for stocks to move up with a low interest rate environment, recovering economy (although slowly), inflation is very low and still plenty of people on the sidelines saying this market is overvalued.

Skepticism is required for stocks to continue to move up. If everyone is on the bull wagon, then there is little or no new money to buy stocks because everyone is invested at that point. Then stocks can only go down at that extreme.

Some Federal Reserve officials said the economy is far from a full recovery and is operating well below full capacity. This is often planned talking points to keep expectations down and keep the stock market from getting too far ahead of itself. If you can imagine their job is to keep the cruise ship steady with little change in speed or direction.

The HUD chief (Housing and Urban Development) said today that the housing recovery is well underway. We are seeing more and more encouraging signs and since we are the earliest stages of recovery, the chances the stock market continues to move up is high.

We will see some of the big banks report earnings this week and that will be interesting as the government aid in the last year is taking effect with the profits, which is likely going to be excellent.

REPEAT: We are still looking for stocks to continue a shallow uptrend with some volatility in this earnings season.

Scalp of the Day:

Not many good scalps today.

EDMC, Education Management. The education and training stocks have been hot lately and this gave an excellent short for a potential profit of 10%!

*These are the kind of trade ideas we will be giving in the Trading Room, which we are in beta testing right now. Put your email address and name on website page to be notified of actual launch date and info.

Mitch King is the founder of TradeStocksAmerica.com. All material presented herein is believed to be reliable but we cannot attest to its accuracy. All material represents the opinions of Mitch King. Investment recommendations may change without notice and readers are urged to check with their investment counselors before making any investment decisions. Opinions expressed in these reports may change without prior notice. Mitch King and/or the staff at TradeStocksAmerica.com may or may not have investments in any stocks cited above before or after this newsletter is prepared. Use the stock table above as a model portfolio of ideas that look attractive at the time of the writing. Comments can be hypothetical in nature. Opinions expressed in these reports may change without prior notice. Disclaimer - Stock investing or stock trading has large potential rewards, but also large potential risk. There is risk of loss as well as the opportunity for gain when buying or selling stocks, bonds, option contracts or engaging in any strategy listed in the Daily Stock Report, The Wizard Training Course, The Trading Room and our seminar or workshops. You must be aware of the risks and be willing to accept the risks when investing or trading in any financial markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell stocks. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

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