ColemanChimneyCorner Daily Musings

April 3
I read an excellent market commentary over the weekend on Louis Navellier's website. Navellier has an excellent record as a growth stock picker, and puts out a free newsletter on the site.
Link:
http://www.navellier.com/marketmail/
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Especially interesting was his take on energy prices. He believes that energy prices will be high for the forseeable future.
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I agree with that. The rise of China and India, in particular, as economic superpowers will probably keep demand strong. There will be corrections. But it appears that we are in a commodity bull market.
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China is on the road to becoming a true super power on the world scene. I also believe we are in the last days before Christ's return, and that the Chinese are referred to as a superpower in the book of Revelation. They are the one nation that could come up with a 200 million man army.
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We are told from time to time that they are slowing their economy to keep it from overheating, but I'm not sure I buy that. They are hosting the Olympics in 2008, I believe. They will be wanting to impress the world. There is a lot of infrastructure work to be done before then. As huge as they are, they can probably keep strong demand on most of the world's resources at least until then.
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One further note on Navellier's website. There is another excellent tool on that site called Stock Grader. You can enter a stock symbol and the site will return a letter grade, from A to F, for an overall grade on the stock according to Navellier's criteria. In addition, it also shows you letter grades for eight different sub-categories that go into the overall letter grade.
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I use Stock Grader quite a bit. I also keep a portfolio on that site, so I can keep track of changes to those stocks. I use it for getting grades on both long and short candidates. Best of all, Market Mail and Stock Grader are both free.
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As for the coming week, once we get the 401k and mutual fund incoming cash put into the markets, we will likely see renewed selling by the end of the week. The markets are oversold, but they are also weak, and there doesn't seem to be genuine buying enthusiasm.
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I have noticed recently that the volume on the NYSE exceeded the volume on the Nasdaq several times in the past couple of weeks. More often than not that occurs during weak market times. It happened frequently during the bear market of a couple of years ago. It happens much less frequently in good markets.
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The markets are at important short and intermediate term junctures right now. The bulls need to get a rally going, or the selloff could be severe IMO. For those who don't trade actively and can't watch the markets during the day, this period is a pretty good one to be in cash. Never forget that cash is a position, too. A zero day is disappointing, but it is better than a minus day brought about because you were in trades you shouldn't have put on in markets you shouldn't have been trading.
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