Market Beating Stocks Monthly Update

Flat Finish Masks Up & Down Week!

The broad market moved slightly down for the week dropping .4%. A flat finish to be sure, but those results masked the market volatility experienced during the week. We saw two sharp down moves, but were fortunate to also experience the rebounds. Consumer confidence figures came in significantly lower than expected and the rise in the dollar caused equity prices to fall. Bernanke came to the rescue by assuring investors that rates will remain low for some time. The economic recovery, while improving, is still very tenuous. In particular, the housing market continues to struggle as January existing home sales came in lower than expected. With all the uncertainty, we are encouraged that the market has been able to hold current levels. Overall, we do expect volatility to trend downwards and the market to rise albeit slowly over time. Occasional corrections will still occur, and when they do we will be buying. We recently bought protection for each of our portfolios and we will continue to do that whenever the market gets a bit overheated. We do not expect a major correction, but rather just felt it was prudent to protect some of our unrealized gains and long positions. Having some protection is an excellent way to manage and reduce overall portfolio risk without sacrificing the potential for big gains.

Momentum And Value Screen: Breakout Stocks To Buy!

What Stock Tips do we have? American Italian Pasta (AIPC, Food Processing), Delta Apparel (DLA, Apparel), Universal American (UAL, Insurance), Breitburn Energy (BBEP, Oil & Gas), Universal Corp (UVV, Tobacco), and Joes Jeans (JOEZ, Apparel) are the stocks currently on our buy list. Three of the stocks on our list were just added this weekend. Universal American offers health insurance and managed care products primarily to the senior market. The company recently announced quarterly earnings that significantly exceeded estimates. However, what really got us excited was the company exceeded top line revenue estimates and offered higher guidance on 2010 prospects. The stock price has moved up, but still represents an attractive buying opportunity. We also added Breitburn Energy to our buy list. The company has shown strong price momentum over the past three months and valuations remain attractive. The rise in oil prices has helped the company outlook, but we think the stock price can continue to move up even if oil prices come under pressure. We do not currently own oil and gas, so buying Breitburn represents good diversification for our portfolio. Universal Corp rounds out our buy list additions for this week. UVV is a tobacco merchant and processor headquartered in Virginia. UVV profit margins and earnings growth have remained strong despite the challenges with increasing revenue in the declining tobacco industry. However, tobacco companies have shown over many years how resistant they are in difficult economic times. This would not be a long term play for us, but we do see opportunity for taking advantage of stock price momentum for the next six months. We dropped two stocks from our buy list that included Amerisource Bergen and Lihua International. We think Amerisource is still a good company to buy in an industry with strong prospects. In fact, we just purchased Amerisource for one of our portfolios, and that is the reason we dropped the stock from our buy watch list. We also dropped Lihua International. China based stocks have struggled over the past few weeks, and that recent loss of momentum has dropped this stock from buy consideration. Overall, we remain optimistic that the market will trend upward through the remainder of the year. There will surely be some bumps along the way, but we plan to remain aggressive and fully invested in stocks.

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