Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 8th of March.
MR. ICAHN, THANKS FOR YOUR VALIDATION
It seems that every time our Trade Triangles signal a move in the market, Mr. Icahn follows suit a little bit later. Coincidence? Perhaps. If you look at some of Mr. Icahn's recent announcements, you may get to see a pattern. A couple of days ago we talked about TransOcean, the next day Mr. Icahn fires off a letter to TransOcean about its poor capital allocation and capital structure. We signaled back in December that we received a bullish Trade Triangle signal in Netflix, next month in January we see Mr. Icahn taking a position. The same thing also happened in Yahoo, which begs the question... is Mr. Icahn using our Trade Triangle technology or something similar?
Mr. Icahn is a very successful investor and the one takeaway we have is that Mr. Icahn basically trades with the trend. If one of the top investors in the world trades with the trend, shouldn't you? In my opinion, it is the best way to make money in the market. There's a reason why smart investors say "the trend is your friend," it's because it works.
SMOKE AND MIRRORS
According to the poll we are conducting on our website, over 70% of you feel that the recent bank stress test is all smoke and mirrors. Are our poll results another indication that the FED is beginning to lack credibility? Did you vote?
HAPPY DAYS HERE AGAIN?
The American economy created more jobs at a faster pace in February, adding 236,000 positions, the Labor Department reported this morning. Does that mean happy days are here again? The unemployment rate dropped to 7.7%, all of which was pretty much in the market, in my opinion.
We are going to be looking at two stocks that jumped on the bull band wagon this morning, they are:
SPIRIT AEROSYSTEMS HOLDINGS (SPR) - The technical trend is positive for this stock. All of our Trade Triangles are green. We see this market moving up to the $21.00 level, where it should run into previous levels of resistance. Present trading level around $18.00. Always use stops and continue to monitor the Trade Triangles for early exit signals.
CROCS (CROX) - The technical trend is positive for this stock. All of our Trade Triangles are green. We see this market moving up to the $17-$18 range from its present trading level around $15.80. Always use stops and continue to monitor the Trade Triangles for early exit signals.
March 27th - Budget Resolution Expires
May 19th - Debt Ceiling Suspension Expires
Have a great trading day and weekend.