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February 10, 2010

 

In yesterday's Stark Report, I mentioned that it would take a technical bounce for the market to keep from experiencing a fifth straight down week.  I failed to mention possible news that would spur a rally.  That is precisely what we got yesterday as fears about Greece defaulting, coupled with so many stocks being oversold on the daily charts, created an environment that allowed stocks to rally sharply.

 

Yesterday's bounce created a unique situation for the Stark Market Barometer.  We see the second strong bullish signal within the last couple of weeks.  The only other time we have seen this was last February 24 and March 4, right ahead of the rally that lasted for the rest of the year for the most part.  While I think this is a good sign for the next few weeks, I would not count on the same kind of sharp move higher.  The bullish signals last winter came at a time when the S&P was the most oversold it had ever been based on the monthly RSI reading.

 

The overall results from last night's scans were 226 bullish signals and nine bearish signals, all nine of which were inverse ETFs.  This sent the SMB soaring to a reading of 93.  I look for a nice rally over the next few weeks as the huge number of stocks that are oversold on a daily basis work off some of this bearishness.  I ran an extra scan last night with many of the same indicators I use in the Stark Report, but I removed any kind of volume restrictions and I only ran the scan on my database of ETFs.  Out of 838 total ETFs, 420 came up on the bullish list, 36 inverse ETFs came up on the bearish list and six bond funds came up on the bearish list.  Hopefully this gives you some perspective on how strong of a bullish signal we are getting right now.

 

 

 

When you have 235 bullish signals, it makes it tough to isolate a particular stock or a particular sector.  I think the best thing you can do is just make some bullish picks and use leverage in some way, either with a leveraged ETF or buy some calls on one of the major ETFs like the Spyders or QQQQ.  I must admit that there was one particular stock that I looked for on the bullish list even when I saw the huge number of stocks on the list and that was ArcelorMittal SA (MT).  MT is one of the best performing stocks when it appears on either of the lists and especially when it appears on the bullish list.


Best Bets: Alpha Natural Resources (ANR) and ArcelorMittal (MT)

 

Bullish

 

 

 

 

Symbol

Name

Open

Close

Volume

ABB

Abb Ltd.

17.89

17.97

4882725

ACE

Ace Ltd.

48.77

48.70

1739677

ADI

Analog Devices, Inc.

27.21

27.12

4841298

ADP

Automatic Data Processing, Inc.

40.84

40.70

2948202

AEO

American Eagle Outfitters, Inc.

15.81

16.06

2673361

AEP

American Elec Pwr Co., Inc.

33.05

33.20

3414755

AET

Aetna, Inc.

29.57

28.97

9961248

AIG

American Intl Group, Inc.

22.38

23.14

9706526

AKS

AKSteel Holding Corp.

20.56

20.80

10685118

ALL

Allstate Corp.

28.64

28.73

2813505

AMP

Ameriprise Financial Inc.

37.65

37.93

3471447

AMT

American Tower Corp.

41.28

41.45

4121257

AMZN

Amazon.com, Inc.

118.20

118.03

9224904

ANR

Alpha Natural Resources Inc.

41.75

41.83

6023632

APA

Apache Corp.

98.55

98.51

3843876

APC

Anadarko Petroleum Corp.

63.03

63.54

4433388

ASML

ASM Lithography Holding N.V.

31.48

31.47

2385458

ATI

Allegheny Technologies

41.63

41.95

2624233

BAX

Baxter Intl Inc.

56.71

56.38

3199750

BBD

Banco Bradesco

16.58

16.90

18406274

BBY

Best Buy Co, Inc.

35.72

35.98

5554209

BCS

Barclays Plc

17.13

17.19

2917033

BGU

Direxion Daily Large Cap Bull 3x Shares

46.09

46.18

11667385

BHP

BHP Billiton Ltd.

69.95

71.16

5456103

BMC

BMC Software Inc.

36.33

36.32

1807585

BMY

Bristol Myers Squibb Co.

24.10

24.25

9906506

BP

BP Amoco PLC

52.92

53.61

8017014

BTU

Peabody Energy Corp.

41.39

42.37

8508670

BUCY

Bucyrus Intl, Inc.

53.36

54.11

3185110

CA

CA Inc.

21.82

21.76

3978094

CAL

Continental Airlines, Inc.

17.79

19.16

10534957

CAM

Cameron International Corp.

38.22

39.33

5370121

CAT

Caterpillar, Inc.

52.70

53.53

15497719

CCJ

Cameco Corp.

26.30

27.01

3508249

CCL

Carnival Corp.

33.40

32.80

5075050

CHK

Chesapeake Energy Corp.

24.68

24.51

11592906

CLF

Cliffs Natural Resources Inc.

41.97

42.75

5728104

CMCSA

Comcast Corp.

15.38

15.39

24182885

CNX

Consol Energy, Inc.

45.73

46.54

4461313

COF

Capital One Fncl Corp.

35.17

35.33

5408975

CRM

Salesforce.com, Inc.

62.68

64.66

2274714

CSX

CSX Corp.

43.69

43.08

6715416

CTRP

Ctrip.com Intl Ltd.

31.22

31.43

2304665

CVX

Chevron Corp.

70.89

71.31

13051974

D

Dominion Resources Inc

36.50

36.57

2705606

DBC

DB Commodities Tracking Index Fund

22.57

22.79

2047264

DDM

ProShares Ultra Dow 30 Fund

40.47

40.76

6247884

DE

Deere & Co.

49.90

50.32

5843455

DIA

Diamonds

100.16

100.65

19228293

DIG

ProShares Ultra Oil And Gas

31.35

31.62

7104888

DISH

EchoStar Communications Corp.

17.90

18.07

2665497

DOW

Dow Chemical Co.

26.54

27.79

20333809

DTV

DirecTV Group Inc.

30.77

31.14

9434563

DUK

Duke Energy Corp.

16.42

16.56

15168599

DVN

Devon Energy Corp.

67.11

67.30

3853293

ED

Consolidated Edison, Inc.

43.04

43.44

2116133

EEM

iShares MSCI Emerging Markets

37.73

38.03

133342053

EFA

EAFE Index iShares

51.59

52.05

30811720

EMC

EMC Corp.

16.99

16.95

21683373

EPP

iShares MSCI Pacific Ex-Japan

38.20

38.42

1751177

ERX

Direxion Daily Energy Bull 3x Shares

33.87

34.51

6345031

ESV

Ensco International Plc

39.07

39.55

2564162

ETN

Eaton Corp.

62.75

63.86

2602379

EWA

Australia iShares

20.98

21.06

5574824

EWC

Canada iShares

24.57

24.73

2398317

EWW

Mexico iShares

46.90

46.63

3283069

EWY

South Korea iShares

45.02

45.17

4211925

EWZ

Brazil iShares

65.04

65.37

33276153

EXC

Exelon Corp.

44.10

44.22

4478256

EXPD

Expeditors Intl of Washington, Inc.

33.24

33.46

2847859

EXPE

Expedia, Inc

21.76

21.88

3961541

FAS

Direxion Daily Financial Bull 3x Shares

64.00

63.33

48915279

FCX

Freeport McMoran Copper&Gold

71.13

71.58

25217935

FE

Firstenergy Corp.

41.29

41.74

2909409

FST

Forest Oil Corp.

24.22

24.69

1881602

FWLT

Foster Wheeler Corp.

25.98

26.02

3095500

FXI

iShares FTSE/Xinhua China 25

38.10

38.46

50062027

GDX

Market Vectors Gold Miners

41.76

42.57

24228538

GDXJ

Market Vectors Junior Gold Miners

22.88

23.41

2310656

GIS

General Mills Incorporate

68.87

69.45

1881760

GLD

SPDR Gold Trust Shares

105.18

105.41

25959374

HAL

Halliburton Co.

28.56

29.08

20175395

HBC

HSBC Holdings PLC

51.49

51.45

4167162

HES

Hess Corp.

58.05

57.69

4967550

HGSI

Human Genome Sciences, Inc.

26.12

27.06

4295257

HIG

Hartford Financial Servic

23.39

22.34

20528014

HK

Petrohawk Energy Corp.

21.91

21.67

6649555

HOG

Harley Davidson Inc

22.61

22.73

2633961

HON

Honeywell Intl

37.37

37.82

6870842

HUM

Humana, Inc.

47.35

47.92

3131191

IBM

International Business Machines

122.65

123.21

6044466

IGT

International Game Tech

17.81

17.62

5206095

IJR

SP SmCap 600 iShares

52.14

52.20

1707471

ILF

Latin America 40 Index iShares

42.71

42.98

4847103

ILMN

Illumina, Inc.

35.50

35.83

1638409

INTC

Intel Corp.

19.64

19.65

69198799

INTU

Intuit, Inc.

29.54

29.31

3876938

IP

International Paper Co.

22.86

22.92

6754421

ITUB

Itau Unibanco Banco Multiplo S.A.

19.26

19.62

20727459

ITW

Illinois Tool Works, Inc.

42.71

43.29

3267071

IVV

S&P 500 iShares

107.49

107.58

4977193

IVZ

Invesco Ltd.

18.66

18.61

7248122

IWB

Russell 1000 iShares

58.97

58.99

3089878

IWD

Russell 1000 Value iShares

55.33

55.51

2826161

IWF

Russell 1000 Growth iShares

47.68

47.80

3369164

IWM

Russell 2000 iShares

59.38

59.49

91987171

IWO

Russell 2000 Growth iShares

64.52

64.66

2917569

IYF

Financial iShares

49.71

49.53

2499117

IYM

Basic Matls iShares

55.42

56.12

2213021

JEF

Jefferies Group, Inc.

25.22

25.24

1235688

JNJ

Johnson & Johnson

62.55

62.76

11356334

JNK

SPDR Lehman High Yield Bond ETF

37.76

37.79

1805642

JOYG

Joy Global Inc.

45.74

45.73

2697192

JPM

J.P. Morgan Chase & Co.

38.19

38.39

45177325

KBE

SPDR KBW Bank Index ETF

22.30

22.18

5735798

KLAC

KLA-Tencor Corp.

29.11

29.17

3539885

KO

Coca Cola Co.

53.69

54.01

15747669

KRE

SPDR KBW Regional Banking Index ETF

23.06

23.07

2924298

L

Loews Corp.

35.13

35.22

2060884

LIFE

Life Technologies Corp

47.52

47.82

1600290

LLTC

Linear Technology Corp.

26.84

26.67

4184301

LM

Legg Mason, Inc.

24.83

25.08

2268175

LNC

Lincoln National Corp.

24.50

24.50

10533642

LOW

Lowes Companies, Inc.

22.02

21.84

16562882

LVS

Las Vegas Sands Corp.

15.93

15.89

20932090

MAR

Marriott Intl Inc New

26.37

26.12

4293118

MCK

McKesson Corp.

58.37

58.75

1693127

MDY

S&P Midcap SPDRs

127.31

127.35

3871201

MEE

Massey Energy Co.

39.45

40.05

5365388

MET

Metlife, Inc.

34.00

35.15

16339662

MHS

Medco Health Solutions Inc.

60.71

61.25

3093210

MRO

Marathon Oil

28.44

28.62

7086290

MS

Morgan Stanley

26.86

27.13

19517282

MT

ArcelorMittal SA

39.31

39.46

5438177

MTL

Mechel Steel Group OAO

21.41

21.90

5408418

MXIM

Maxim Integrated Products, Inc.

17.84

17.79

3160758

NBR

Nabors Industries, Inc.

21.97

22.29

8486956

NKE

Nike Inc.

61.78

62.51

2359528

NTRS

Northern Trust Corp.

50.40

50.08

1869046

NUE

Nucor Corp.

40.42

40.46

5044310

OIH

Oil Services Holders

117.07

118.09

7723752

PBR

Petroleo Brasileiro (Petrobras)

39.67

39.54

25030345

PBR/A

Petroleo Brasileiro Sa

34.97

34.99

7914238

PCAR

PACCAR, Inc.

34.45

34.95

2949031

PCU

Southern Copper Corporation

28.08

28.22

5194699

PFE

Pfizer, Inc.

17.87

17.88

70976415

PFG

Principal Financial Group

21.64

21.45

6365476

PGR

Progressive Corp.

16.41

16.37

3193263

POM

Pepco Holdings Inc.

16.08

16.09

1607173

PRU

Prudential Financial Inc.

47.81

48.36

4967033

PTEN

Patterson-UTI Energy, Inc.

15.43

16.04

8335378

PX