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Daily Archives: August 12, 2008

The Bulls Are Back in Retail

August 12, 2008
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The Bulls Are Back in Retail

Energy prices down, retail stocks up.  Goes together like America and apple pie. As oil and unleaded gasoline have fallen more than 20% since peaking four weeks ago, money has been moving into many retail names.  But what caught my eye was the monstrous volume seen in many retail chains on Monday, August 11.  Just check out the charts below of Kohl’s (KSS), Home Depot (HD) and Gap (GPS)– in particular, notice the gigantic volume that flowed into these stocks on Monday.  Many other big retailers are experiencing similar action. All three stocks burst above their 200-day moving averages,...

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How Readers See the World

August 12, 2008
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Last week I asked readers how they think the world has or hasn’t changed in the last 34 years. I want to thank everyone who wrote in and I’m posting some of the letters here. Here’s a letter from D.L.: I might point out that in 1974 Blacks were just becoming mainstream in professional and college sports (Bill Russel fighting acceptance/ Kareem Abdul-Jabbar not so much) and that China was also just recently joining the world after the Nixon/Kissinger initiatives. Also, we were just finishing an unpopular military initiative – Vietnam. Pretty eerie, Huh? And here’s one from B.B....

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Stuck on Biotech Stocks

August 12, 2008
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I’m stuck on biotech stocks right now for several reasons. One, they’re strong; many have earned spots in Cabot Top Ten Report in recent months. Two, many actually boast growing earnings trends. Three, the group has failed many times in past decades to put together a lasting advance, so maybe now is the time.  Psychologically, the fact that so many people are skeptical of biotech stocks is a big plus. Four, there will be tremendous demand for health-improving products as baby-boomers age; biotechnology offers the best chance we have to stay healthy. So take a look at Illumina (ILMN),...

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