Weekly Stock Market Recap

Market Beating Foresight: Market Hits Fresh New Highs

Volatility returned as the Stock Market hits fresh new highs for 2009. For the week the broad market (S&P) ended 2.2% higher, a strong turnaround from earlier in the week. For the most part economic data was poor with jobless claims rising more than expected and housing data failing to meet consensus estimates. The stock market was able to shrug off the bad news and rise further. By the end of the week, better than expected home sales were released which helped the market realize a weekly gain. A lot more economic data is due for release next week, which we expect will confirm an economy that is slowly beginning to stabilize. Most key measures are still declining, but the pace of decline has certainly slowed. We think the worst is over, but acknowledge that the recovery will likely be weak and slow. We just do not see a quick return to the high flying days of the past few years. The de-leveraging underway amongst consumers and businesses will temper spending and economic growth. That said, we think the stock market is still an excellent place to invest. We are very optimistic that our stock selection strategy and portfolio management approach will significantly outperform the market indexes in this environment. Frankly, we would welcome a stock market with lower volatility, even if that means somewhat slower market appreciation. We know our strategy can far exceed market returns in just such an environment.

Momentum And Value Screen: Hot Stocks To Buy

What Stock Tips do we have? Our Momentum and Value stock screen has uncovered several Hot Stocks. The Breakout Stocks on our list include Babcock & Brown (FLY, Rental & Leasing), Innophos Holdings (IPHS, Chemical Manufacturing), Core Mark Holding (CORE, Retail Grocery, Bucyrus Intl (BUCY, Constr. & Agric Machinery), Credit Accep Corp (CACC, Consumer Financial Services), and World Accep Corp (WRLD, Consumer Financial Services). Babcock & Brown stock price is now up 22% since we first added to our buy list. We still like the company prospects although price momentum has slowed recently. Innophos has also been on our list for a while and is up 16% from our initial buy list price. We just purchased a call option on Innophos for our Aggressive Portfolio last week. Core Mark Holdings has been steady in August and is up 5% from our buy price. Bucyrus Intl was just added last week and we have not yet decided on whether to buy the stock or a call option. This week we are also adding two new stocks in Credit Accep Corp and World Accep Corp. Both companies are in the consumer finance space and are showing very strong momentum. Financial stocks in general have shown much strength over the past few months from what were very oversold levels. We dropped Incredimail, Joy Global, and NRG Energy from our buy list. Incredimal is already up nearly 40% since we first recommended and we do not want to chase the stock. Company prospects remain very strong, its just that the stock is now not as cheap as it once was. We recently purchased both Joy Global and NRG Energy for our stock portfolios, and our practice is to remove stocks we buy from our buy list. Subscribers that are looking for ideas on stocks to buy should always check our buy list as well as stocks we have recently purchased for our portfolios. All in all, we remain optimistic long term and would encourage investors to stay invested and not risk missing out on the next big move. However, it is always prudent to take some gains off the table when there is a big advance, just as we recently did with our 75% gain on Boise stock over just two short weeks. Volatility did rise last week and that is a trend that may continue as the market marches forward. As a result of that volatility, stock prices could swing in wider ranges over coming weeks. In that light, we suggest using that volatility as an advantage by investing in opportunities whenever the market moves sharply down.

Remember, you can access daily updates on Hot Stocks to Buy directly from our web site At: http://www.marketbeatingstocks.com