Weekly Market Outlook |
By Dave Mecklenburg |
Published
02/16/2009
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Currency , Futures , Options , Stocks
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Unrated
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Weekly Market Outlook
World markets look to be in a free fall, and economists are saying don't look for a bottom this week in the U.S. economy. What do the professional traders of TraderInsight.com think?
Here’s the list of 5 stocks our professional traders will be watching this week:
Willis Group (WSH), Marsh & McLennan Companies (MMC), Arthur J. Gallagher & Co (AJG), Allscripts Healthcare Solutions (MDRX), Cerner Groups (CERN)
Adrian Manz, Stock Day Trader
Price action continues to suggest that the path of least resistance is lower. Positive news from Washington impresses traders long enough for a short-term rally here and there, but nothing takes hold and the ultimate outcome is continuation of the downward momentum. While the Dow Industrials are starting to show signs of a big picture Backdoor Slider short-side setup, there are still some pockets of strength that will make for excellent intraday trading if we see a reversal move higher. Early trading this week, however, will have me focused on the short side of the market once again with the insurance brokers in the crosshairs for Tuesday’s session.
Willis Group (WSH), Marsh & McLennan Companies (MMC) and Arthur J. Gallagher & Co (AJG) are on my short list among the Insurance brokers for a continuation move lower. The group as a whole is a Switch Hitter short setup, and each of the aforementioned stocks are likely to participate in any downdraft. In the pockets of strength out there, the Healthcare Information Services stocks have staged a move above a recent base, and I will be on the lookout for additional signs of expansion in Allscripts Healthcare Solutions (MDRX) and Cerner Groups (CERN).
Tom Incorvia, Stock Swing Trader
At the risk of repeating myself, all three of the broader averages were down last week. The sectors didn’t fare much better as all 31 sectors were in the red column, and of the 239 industry groups only 19 were up. To sum last week up, it was ugly, especially in the Dow. The Dow looks ready to retest the November lows.
Looking forward to this week, most of the action will once again probably be coming out of Washington. There also will be a lot of attention paid the release of the Producer Price Index (PPI) and the Consumer Price Index (CPI) that will be announced at the end of the week.
Even though the broader indexes are looking lower, there are some industry groups that may be worth looking at on the bullish side. There are several companies in the Generic Drug, Drug Manufacture, and Biotechnology industry groups that may be pushing to the upside. If there is more weakness in the markets, I will be watching stocks in the Building Materials industry group.
Art Collins, Index Futures Trader
A three-day weekend on the heels of a skittish market doesn't portend the most positive of market scenarios. It was interesting that bonds and equities fell in tandem, albeit the bonds faring much worse. I'm wondering if we'll see some sort of concerted plunge in most or all financials as the crisis reaches its crescendo. That would be consistent with the foreshadowing of an inflationary panic. One certainly can't discount that possibility as the government abandons balanced budgets in favor of plugging up holes in the dyke.
For Monday, look for initial support in the S&Ps in the 797.50 to 805.50 area. If that gives way, the next stop would be the November lows at 739.50.
Dave Mecklenburg is the Editor-in-Chief of TigerSharkTrading.com.
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