Welcome to Hawk’s Scan Sentry Report. This is Sunday night May 15th with stock picks for early this week.

According to a local weather prognosticator the markets will likely keep rising. Yep, I got that from a veritable walking almanac whom I happen to know. Let me explain….

It has been raining a lot out here… I mean a lot… I know that the people in the floodplains of the Mississippi River know what I’m talking about. They really are aware of how to gauge how much rain is a lot of rain; their very lives depend on it.

Well, I live on an island in Washington state, near Canada, where one trader recently presented to me his own analysis of the stock market. He correctly pointed out that it has been raining here more or less nonstop since about the beginning of this market rally, which started around September of last year. He went on to point out that the ratio of daytime hours of overcast or rain to those of sunshine was similar to the ratio of hours when the indexes went sideways or up versus when the markets went down. His logic went on to predict that as long as it keeps raining out here, the markets will probably continue to rise… after all, like Fibonacci ratios, everything is a natural phenomenon and linked together in some kind of gestalt web. Well, statistically his numbers actually look like they may be close to accurate; but, I believe I will make more money using the Arps Scan Sentry toolkit to help with my trading decisions, which monitors demonstrable market patterns. I’ll let him trade from his rain-gauge.

Last week’s stock picks did pretty well, with the one exception of CHBT, highlighted by ERTS and WCG combining for a profit of 15%.

So, through the laborious efforts of technical analysis made so much easier by the Arps Scan Sentry tools, I have come up with several ideas to look at for entry possibilities for short term swing positions this week. Remember, although stock selection is important, sound money management is the most important key to long term success in these financial markets.

Here are the picks…

(Longs) (Shorts)

GIS                     CSCO

BBY                    CGA

K                         FMER

MMM                 LPHI

All of these symbols showed recent signals in the Trend Exhaustion 1 tool.

May the trend be with you,

Hawk

GIS

CSCO

BBY

CGA

K

FMER

MMM

LPHI