Weekly Stock Market Update

Market Beating Foresight: 3rd Quarter Reporting in Full Swing

Third quarter reporting is now in full swing with the results to date somewhat mixed. Despite mixed results the broad market was able to rise 1.5% for the week. Financial services got a boost from JP Morgan, Goldman Sachs, and Citigroup all of which reported better than expected results. Bank of America on the other hand was a major disappointment as losses widen greater than expected. The soon to be retirement of CEO Ken Lewis also played into the selling pressure on B of A stock. Overall, results were mixed at reports on both IBM and GE added to the selling pressure. Third quarter reports will continue for a few more weeks and we expect more of the same. That is, mixed results, with the majority of companies struggling to meet top line revenue targets. We hope the market can carry current price levels through the end of the year, and frankly do not expect another big market rise. However, we also do not expect a big market downturn unless upcoming third quarter reporting deteriorates significantly. We expect fourth quarter reports show more favorable trends and would expect the market to have another bounce early next year as a result. We plan to buy on dips to be invested in the market in advance of that anticipated price rise.

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 that remain from last week include Kapstone Paper & Packaging (KPPC, Paper Products), Walter Energy (WLT, Coal), VSE Corp (VSEC, Business Services), and Hi-Tech Pharmacal (HITK, Biotechnology & Drugs). Newly added to our watch list this week are Breitburn Energy Partners (BBEP, Oil & Gas) and KMG Chemicals (KMGB, Chemical Manufacturing). Breitburn is an independent oil and gas partnership focused on acquisition, exploitation, and development of oil and gas properties. The BBEP stock price has been on a tear, but we consider the stock valuation still very reasonable. However, oil and gas stocks have been rocky over the past year, so investors need to be prepared for that volatility when choosing to buy. KMG Chemicals is the other new stock we added, a company that manufactures, formulates, and distributes specialty chemicals. We really like this stock and may buy early next week. The KMGB price chart is very strong and the stock valuation is very reasonable in light of past earnings and sales growth. Furthermore, institutional ownership remains low, so additional buying interest could really propel the stock higher. We think this stock could be poised for big gains given all these factors, and of course will only benefit further as the economy rebounds.

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