Written by Patrick McCubbin
Exact Stock Picks
Good Afternoon,
Investors looking for reassurances about the health of the global economy received just that Monday.
Stocks extended their rally into a third week after global regulators agreed to new rules for how much money banks must hold in reserves, China reported its economy remains robust and companies announced a flurry of new takeovers.
The Dow Jones industrial average rose 81 points for its eighth gain in the past nine days. The Dow did close off its high after some traders pulled money out of retail stocks ahead of the government’s monthly retail sales report due out Tuesday, but overall sentiment remained positive, pushing major indexes to their highest closes in more than a month.
Well, as we said in the morning newsletter it would be important for the markets to keep their gains after breaking early resistance, and they did. This has been a very strong market lately, and our strategies are paying off each and every day.
We exited our position in TIBCO Software (TIBX) today. We entered the position on Sept. 1st and felt like an 8.5% gain justified our actions. Although this stock is hot its relative strength is in an overbought condition and with the fact we have all long positions we needed to pocket some money. It’s all about consistency.
Meru Networks Inc (MERU) had a fantastic day up over 10% on huge volume! If the volume wasn’t so astounding we may have taken this opportunity to lock in some profits. But with this type of action there could be more to the story than we can see. We are up nearly 13% on this stock and we have only held it for less than three sessions.
The rest of our stocks traded in a thin range.
Have a great evening and we’ll see you in the morning!
Market Wrap Up – 9/13/10 is an article from: 
