The market snapped out of the down week with force. The Dow gained 376 points (4%) this week. At the end of the week, my watch list has 9 companies compared to 12 from the previous week. Here are the companies on my watch list as of October 9, 2009.
Becton Dickinson (BDX) is still on this list and the price hasn't move much since Buffett announced back in August that he's taking a stake in the company. May be it's worth to take a look.
Note: Abbott Lab (ABT) is no longer on this list after being on it since this list began in June. I flagged you to ABT on 9/24/09 and the stock gained 8.5% since.
Market Commentary
This bull run appear to be alive and well. Both the Dow and S&P closed today at their yearly high. Such strength should keep the market momentum alive. The one thing I worry about going into next week is the Transport. Remember that the Transport tells us the movement of goods and services. If the economy is not moving along, transportation index will also reflect that. This is the view of the Dow Theorist which I am a student of. Let's examine the Industrial and Transport below. First, you see how strong the Industrial is. The Transport, however, have me worry about this rally. A non-confirmation from the Transport might signal the end of a bull market rally.
So what should you do? If you are long, stay long but flat. Watching ALL your positions closely and make sure none of your profit dissipated or loss magnify. Transport is the key index I will be watching. Of course I won't know when this rally end until three months after but my goal is not to lose money. It's just too hard to earn it back.
Art
| Symbol | Name | Price | P/E | % Yr Low | Yield | EPS (ttm) | Div/Shr | Payout Ratio |
| WMT | WAL MART STORES | 49.97 | 14.65 | 8.04% | 2.18% | 3.41 | 1.09 | 32% |
| CAH | CARDINAL HEALTH INC | 27.32 | 8.56 | 9.85% | 2.56% | 3.19 | 0.70 | 22% |
| WEYS | Weyco Group, Inc. | 22.65 | 20.97 | 12.63% | 2.65% | 1.08 | 0.60 | 56% |
| BCR | BARD C R INC | 77.94 | 16.35 | 13.05% | 0.87% | 4.77 | 0.68 | 14% |
| PNY | PIEDMONT NAT GAS CO | 23.73 | 15.31 | 15.64% | 4.55% | 1.55 | 1.08 | 70% |
| NWN | NORTHWEST NAT GAS | 42.43 | 15.37 | 15.90% | 3.91% | 2.76 | 1.66 | 60% |
| BDX | BECTON DICKINSON CO | 68.75 | 14.27 | 18.25% | 1.92% | 4.82 | 1.32 | 27% |
| PGN | PROGRESS ENERGY INC | 37.45 | 13.05 | 19.46% | 6.62% | 2.87 | 2.48 | 86% |
| MKC | MCCORMICK & CO | 33.67 | 16.75 | 19.91% | 2.85% | 2.01 | 0.96 | 48% |
| 9 companies |
Note: Abbott Lab (ABT) is no longer on this list after being on it since this list began in June. I flagged you to ABT on 9/24/09 and the stock gained 8.5% since.
Market Commentary
This bull run appear to be alive and well. Both the Dow and S&P closed today at their yearly high. Such strength should keep the market momentum alive. The one thing I worry about going into next week is the Transport. Remember that the Transport tells us the movement of goods and services. If the economy is not moving along, transportation index will also reflect that. This is the view of the Dow Theorist which I am a student of. Let's examine the Industrial and Transport below. First, you see how strong the Industrial is. The Transport, however, have me worry about this rally. A non-confirmation from the Transport might signal the end of a bull market rally.
So what should you do? If you are long, stay long but flat. Watching ALL your positions closely and make sure none of your profit dissipated or loss magnify. Transport is the key index I will be watching. Of course I won't know when this rally end until three months after but my goal is not to lose money. It's just too hard to earn it back.
Art
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