Market Beating Foresight: Another Flat Week As Consolidation Continues

The broad market ended flat again as the consolidation continued last week. The NASDAQ on the other hand ended the week up 1% as technology stocks got a big boost in light of positive earnings surprises from Research In Motion and Oracle. Economic measures were mixed with Producer Prices higher than expected, although the Consumer Price Index remained in line. Industrial productivity beat expectations, but jobless claims rose again last week. We view the consolidation action in the market as a plus. The market simply needs time to catch a breath following the tremendous climb since March. The economy is showing signs of improvement and we expect that to continue, although likely at a very slow pace. The market so far has established a resistance level around 1100 on the S&P Index. We expect more of the same over the next few weeks as we move through the holiday season. Trading volumes are usually much lighter over the holiday, which can cause more volatility at times particularly for smaller stocks.

Momentum And Value Screen: Hot Stocks To Buy

What Stock Tips do we have? We have kept VSE Corp (VSEC, Business Services), HealthSpring (HS, Accident & Health), and Nash Finch Company (NAFC, Grocery) on our watch list from last week. We bought stock in both World Accep Corp and Gulf Resources last week so those stocks were removed from our watch. We are adding one new stock to the list this week and that is Odyssey Healthcare (ODSY, Healthcare Facilities). Odyssey is a provider of hospice care in the US. The stock price has been moving up strong since May and over the last three months is up 18%. That is pretty strong price appreciation particularly relative to the overall market. Earnings and sales growth has been steady, and ODSY management has a good track record in exceeding earnings estimates. We like company fundamentals, as well as the industry prospects, and think those factors will help the stock continue to rise. As for our portfolios, we expect to become fully invested early next year, assuming the ma rket continues to hold current resistance levels. However, we do plan to take advantage of tax rules and sell those stocks in loss positions from our taxable portfolios before year end.

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