Moring Stock Report – Stocks to Watch 13-7-09

International Markets

• U.S. Data Releases:

-          Trade Bal. -$26.0B v cons. $30.0B: lowest reading since Nov. ‘99.

-          Import Price Index: MoM 3.2% v cons. 2.0%.

-          U. of Mich. Confidence: 64.6 v cons. 70.0: down from June’s 70.8.

• Slide in cons. conf. adds concern eco. recovery will be delayed. S&P 500 drops 4th week in a row; -7% since June 12.
• China’s exports fell for an eighth month as the global recession cut demand
• Citi slid as much as 39% on concern FDI won’t guarantee its bond sales.
• Biggest weekly decline in Crude since Jan, plunging 10.3% this week. Closing below $60 @ $59.89.
• GM to emerge from bankruptcy
• Greenback rises 0.7% v most major currencies since beginning of July reflecting general risk aversion.
• 10 yr notes extend their longest weekly rally in ’09: 5th weekly gain. “Green shoots were premature”.
• Investors look to tech stocks for hope as Intel, Google and others report next week. NASDAQ still positive for year.

ASX200

-          Focus remains on 3550 during this correction. Initial support found last week at May lows of 3715 but this will not prove to be the major low. Caution still warranted.

-          Head and shoulders top formation also in place giving high probability that any strength is still unlikely to exceed recent high of 3956

Stocks At Major Resistance/Correction Likely

- ASX      New Resistance = $36.25           New Downside Target = $31.00

- AMP     New Resistance = $5.00             Downside Target = $4.27

-  WPL     Resistance = $43.75                   Downside Target = $36.00

-  BLD      Resistance = $4.18                      Downside Target = $3.20

-  OSH     Resistance = $5.55                      Downside Target = $5.06

-  PPT      New Resistance = $29.15           Downside Target = $24.90

-  JHX       New Resistance = $4.22            Downside Target = $3.20

Stocks to Outperform

- AGK   Next Support = $12.83               Upside Target = $15.15

- SGT    Support $2.46                               Upside Target REACHED = $2.80

- NCM  Next Support = $29.24                Upside Target = $34.90, 37.40

- LGL    Next Support = $2.73                  Upside Target = $3.34, 3.52

- CEU   Support = $0.285                          Upside Target = $0.38

- TCL    Support = $3.85                            Upside Target = $4.90

TLS  –   Similar format to last BUY trade in June  for outperformance.

-          share price attemptiong to break through resistance at $3.45 with potential then for $3.75/3.80

-          Support $3.25/3.20

 View Full Report

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