The Bulls Still Have Work to Do

To ensure delivery of this newsletter, please add mail@wyattresearchnewsletters.com  to your address book.   To be removed from the list and stop receiving Daily Profit please click here. Tuesday July 5, 2011 To unsubscribe - click here TradeMaster Half Off sale An Exclusive "Sneak Peek" The Chart of the Day Fellow Investor, I received a number of emails from Daily Profit readers yesterday and this morning regarding the TradeMaster Half Off sale. Specifically some readers wrote in because travel plans for the holiday weekend prevented them for signing up. And others wanted a "sneak peek" at the service. Well, here's both: we're extending the sale one more day. You can sign up here. For those who want more of a free sample, today's Daily Profit is taken directly from this morning's TradeMaster Daily Stock Alerts. Each morning, before the market opens, Jason Cimpl of TradeMaster brings subscribers up to speed on what's going on the market and what he's looking at for profitable trades. Please enjoy today's edition with Jason's compliments. Best Regards, Ian Wyatt Editor Daily Profit ------------------------------------------------------------------------------------------------ Fellow TradeMaster Reader, The market blasted higher last week. In fact, most indices were up over 5% on the week. And all of the bearish rhetoric over the past two months disappeared along with the losses incurred over that time. In last week's quick burst higher the indices managed to erase eight weeks of decline. But the bulls still have work left to do. The rally last week was impressive, but obstacles remain in place and the bears will likely return soon. In the weekend video, I mention in greater detail the kind of challenges the indices face. But the short version is that every sector is within one percent of a major resistance zone. Additionally, the rally from last week pushed the indices into overbought extremes. While the market could push higher from here, I think some kind of pull back is likely first. I think the pull back should be fairly mild, and it will resemble consolidation before earnings season gets underway next week. But there is always the possibility that the market turns hard at resistance and falls all the way back down to 1280/1250 support.                                Special opportunity, article continues below. "Must Buy" Tech Stock to Own Now Tech stocks across the board are cheap right now. But that doesn't necessarily mean you need to dive in headfirst and expose yourself to the whole sector. Discover in this exclusive report the select few tech picks that look extremely promising. Gain access here. Open Positions Ticker Buy Date Buy Price Position ENTG 5/27 $8.87 Long HELE 6/16 $31.67 Long WRES 6/16 $3.52 Long GBG 6/27 $1.97 Long         Recently Closed Positions Ticker Position Sell Date Return BGZ Long 4/1 -1% SRS Long 6/29 -0% JOEZ Long 6/24 +16% MTW Long 6/24 -7% NOG Long 6/17 +0.4% MMR Long 6/13 -7% SWK Short 6/13 +9.2% DXD Long 6/13 -4% SMN Long 6/13 +6.1% MU Long 6/8 -10% ADPI Long 6/6 -4% QPSA Long 6/2 +6.3% AXK Long 5/31 +30.3% JBL Long 5/24 -0% BEAT Long 5/24 +8.3% View All Positions   I do not think the market will fall back to that support area over the next few weeks. But until the indices can take-out overhead resistance that was established in May, the market is prone to a reversal. One area of the market that we will be focused on this week, today especially, is gold. The yellow metal remains in an amazing long term bullish trend, but as we saw in the video this weekend, it needs to find support very soon. In fact, unless it can blast higher today, it is likely to fall another 5%. I am banking on a gold, and silver, recovery. And I think that recovery will happen soon. As a bonus to all TradeMaster readers, because this could be a big opportunity, I have constructed a special report on gold and silver miners to buy as commodity prices recover. The report was sent out to subscribers last week and it can also be viewed at our homepage. The bulls have recovered a large portion of an eight week decline that began in May. While the recovery from the lows looks promising, substantial resistance is expected in the near term for nearly all sectors. The weekend video "Index Review" goes over resistance levels to watch for the week and I encourage all members to watch the video over the weekend to prepare for the new week. Current Stops (7/1 updated) These positions will only be sold if the stock closes below each stop. There is no magical rule for stop losses, only use what is comfortable for you. I like to setup with closing price just above/below a resistance/support zone, but many others prefer limit/market stops or trailing stops, please give each for a test drive and go with the one that makes the most sense to your style. HELE - The stock has done well despite a weak market and weak consumer. Shares rallied hard off $29 support but could not find the momentum to get over the $33 hump. I think that if the market recovers shares should pop 15% higher with the chance of $40 if earnings come in strong next quarter, the stop loss is $32.76. WRES - It is tough to say if WRES has bottomed, but I think it is very near one. The $3.40 area was steady resistance for most of 2010, but in October, shares broke past that price and ramped to $6 before coming back down to $3.40. I would expect WRES to find immediate support and rally up to $4.15, $3.39 is the stop. ENTG - target is $11.75 with a stop loss of $9.81 GBG - stop loss $1.88 I recommend that all subscribers read the past few daily comments before they trade. The market evolves each day and my short-term analysis will also change. But the big story trends do not change as frequently and they are not always included in each morning alert. The archives can be found on the website here. We always enjoy hearing from you about your recent trades and product suggestions at tradedesk@trademasterstocks.com. SPX intraday levels to watch this week 1377 is resistance 1332 is resistance 1301 is resistance 1280 is support 1250 is a major support level 1225 is support 1197 is major support 1175 is a major support level 1155 is support 1131 is support 1115 is a support level 1100 is support 1085 is support 1019 is major support Best Regards, Jason Cimpl, Research Analyst TradeMaster Daily Stock Alerts If you're ready to juice your returns and make profits in days--not weeks or--months, then check out Jason's trading service, TradeMaster Daily Stock Alerts. Through today only you can sign up and get 2 years for the price of 1. Take 30 days--a whole month!--to test drive the service. If you're not immediately making the gains that will change your portfolio then call or email to cancel and get a full 100% refund. Click here for more...   Follow Daily Profit Editor Ian Wyatt on Twitter:     Funding an American Retirement Low interest rates are penalizing savers and jeopardizing your retirement plan. Find out how to build your nest egg regardless of market direction. Is Your Win Rate 90%? If you're not winning on 90% of your investments we can help. In the last 2 years we've had 32 paydays out of 37 stocks, averaging 12.5% profit every 90 days. The 8.2% Bank With most banks paying a paltry 1% or less it's hard to stay ahead of inflation, let alone make a buck. 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