Three Stock Ideas From California

The Final Numbers - Stocks Move On Oil

News: The market closed the session mixed as it played off the action in the oil pits. With crude getting close to $140/barrel and hitting a new record high this morning, the Dow was down nearly 100 points. As the day wore on, the price oil fell $6 from the high to close in the red for the session. The selling in oil sent the Dow into positive territory before closing the day at 12,269, down 38 points. The S&P 500 closed unchanged and the NASDAQ rallied 20 points on the back of Research in Motion’s (RIMM) 6% gain.

The Bottomline: The market continues the zig-zag trend it has been over the last couple of months and neither the bulls nor bears have complete control. Over the long-term I remain very bullish, in the short-term I am neutral at best for the overall market. That being said, there are a number of sectors that I feel are ripe for a rally into the Fall and will be the place to invest your money. There is also the single stock play if you prefer that strategy over ETFs. The key will be sector and stock selection for the remainder of 2008 and possibly longer. Here at PFG we will implement the Top-Down Strategy to uncover tomorrow’s winners.

The Daily ETF Update - Hello From San Fran

News: I arrived this morning at the 3rd Annual Exchange-Traded Funds and Vehicles Conference in San Francisco.

The Bottomline: For the next two days I will be finding out firsthand what the experts in the field of ETFs are saying about the future of the industry. Everything from new asset classes to specific strategies will be discussed over the two-day event. After the conference is over I will put together a synopsis of the discussions. I was lucky enough to be asked to speak at the conference and will be explaining sector rotation strategies using ETFs on Wednesday morning if anyone is in the San Francisco area.

McCall’s Call - Buying Opportunities For The Treasure Hunters

News: After today’s close I was running through my normal PFG stock/ETF scans that we run on a daily basis and I was a bit surprised by the number of attractive investments sitting on support and/or giving buy signals.

The Bottomline: As I alluded to in the first section, right now it does not feel like a time when you should be putting money into stocks or ETFs. However, when analyzing the scans it is clear there are a handful of individual names that could be bought this week. For starters, how about one of my favorite countries in the world? Yep, ***** is now a buying opportunity for the aggressive investor after a 10% pullback. FYI - This country ETF is mentioned in today’s issue of The ETF Bulletin!

Because it is a chilly Monday here in San Fran, I will go out on a limb and share a trifecta of stocks with you that caught my eye after pulling back to support.

#1 - Vale (RIO) - The Brazilian steel & iron company hit $44 in May on its way to a new all-time high. One month later the stock is at $34 and is sitting right on top of the 200-day moving average. The last two times this stock touched the indicator it rallied big time.

#2 - Aracruz Celulose (ARA) - Another Brazilian name that is $10 off the recent all-time high and is now sitting at $81/share. Great support at the $80 area and the stock is oversold on the RSI. Finally there is the annual 5.6% dividend yield.

#3 - ABB Ltd (ABB) - Staying with the foreign theme, I went to Switzerland to land one of the major infrastructure players around the globe. Think anything from power grids to nuclear plants and ABB is a player.

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