Stock Market Trading Newsletter, February 25, 2008

Tuesday, February 26, 2008

Stock Market Trading Newsletter February 25

The Week Ahead: News that the Philly Fed Index reached its lowest level since 2001 indicates that the economy is still sliding lower and increases the chances of the Fed lowering rates again by 50 basis points. Listen to Ben Bernanke's testimony to Congress on Wednesday and Thursday for clues to this possibility. Existing home sales are due on Monday and the PPI on Tuesday. Durable goods numbers and existing home sales are released Wednesday while preliminary 4th quarter GDP is out on Thursday.

Stocks to Watch: Intuit (INTU) shares reached levels not seen since 06' after reporting lower 2nd Q earnings and sees the 3rd Q below street estimates. Calgon Carbon (CCC) had a big turnaround in numbers as sales rose 21% and earnings went from a loss to a sizeable gain. Omnicare Inc. (OCR) turned up from an important low after announcing an an important new director to its board. Orthofix Int'l (OFIX) which makes orthopedic products collapsed after announcing a 4th Q loss versus a gain a year ago.

Special Note: The S&P 500 and DOW are now up 4 of the past 5 weeks despite no net progress since the February 3rd and 4th highs. The late day surge on Friday came on a report of an imminent bank sponsored bailout of Ambak Financial (ABK). This rings hollow though on the same day that Fannie Mae (FNM) and Freddie Mac (FRE) both received major downgrades. Even GMAC was lowered three notches by S&P toward junk status as its residential mortgages unit has mounting losses.

Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.

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