Weekly Market Overview

Wall Street opened the week little changed despite rising gasoline and oil prices that threaten consumer spending. Today, investors got a little relief from a retail sales report showing an increase in consumer spending. However, the big question is whether the short term effects of an economic stimulus will be enough to offset a troubling trend. Federal Reserve Chairman Ben Bernake also eased concerns by stating that the turmoil in the financial markets is beginning to wane. However, he was careful to caution that the credit crisis is still "far from over".

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. JA Solar Holdings (JASO) - Chinese solar stocks spiked on higher-than-average volume this week following earnings announcements from many industry players. JA Solar Holdings, China Sunergy Company, ReneSola, and Trina Solar are just four Chinese solar companies that rose today as several companies reported strong earnings. (Read More)
2. Deere & Company (DE) - Deere shares surged higher this week after CNBC's Jim Cramer recommended the stock in his latest Mad Money broadcast. The television superstar hailed the $37 billion company as being in the sweet spot between the two biggest shortages of our time, oil and food. We agree. (Read More)
3. Baidu.com, Inc. (BIDU) - Baidu shares extended their losses from yesterday despite positive earnings this week from fellow Chinese firm Alibaba.com. The top Chinese e-commerce firm more than doubled its first quarter earnings on strong demand for online trade and better profit margins after cost cutting. However, the broader Chinese indexes sold off in recent weeks thanks to fears of rate hikes and inflationary concerns in mainland China. (Read More)
4. Hyperdynamics Corporation (HDY) - Hyperdynamics shares surged higher after Executive VP Jim Speer announced that he would be presenting to a group of pominent Canadian Geoscientists intersted in exploration offshore West Africa, and several of the expected attendees represent potential joint venture partners. The meeting is designed as a way to drum up interest in the company's 31,000 square mile concession area and pave the way for drilling. (Read More)
5. Spanish Broadcasting (SBSA) - Spanish Broadcasting is finding itself under increased pressure from dissident shareholders seeking to put the company up for sale. Discovery Equity Partners, which owns a 9.8% stake, encouraged shareholders to vote in favor of their candidates for the board of directors at the company's next annual meeting. The activist hedge fund said it intends to retain an investment banker to pursue strategic alternatives to enhance shareholder value. (Read More)

Technical Analysis

1. Informatica Corporation (INFA) - Long-term bullish continuation diamond.
2. Gigamedia Limited (GIGM) - Intermediate-term bullish double bottom.
3. Shengdatech Incorporated (SDTH) - Intermediate-term bullish double bottom.
4. Depomed Inc. (DEPO) - Intermediate-term bullish bottom triangle.
5. Venoco Incorporated (VQ) - Intermediate-term bullish head and shoulders bottom.
   

Stock of the Week : JA Solar Holdings (JASO)

Chinese solar stocks spiked on higher-than-average volume today following earnings announcements from many industry players. JA Solar Holdings (NDAQ: JASO), China Sunergy Company (NDAQ: CSUN), ReneSola (NYSE:SOL), and Trina Solar (NYSE: TSL) are just four Chinese solar companies that rose today as several companies reported strong earnings. (Read More)

Article of the Week : Retirement Savings with Roth IRAs

Roth IRAs are a great way to supplement your retirement income without paying the government too much. The retirement account was designed in 1998 as part of the Taxpayer Relief Act and enables individuals to forego deductions on contributions to instead cash out all of your earnings tax free. The program also provides some more lenient guidelines on early withdrawal for valid purposes. (Read More)

Final Words

The future of the U.S. economy remains uncertain despite an improvement in the financial sector thanks to dealmaking. Overall, the economy seems to be heeling, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.

Weekly Market Overview

The markets ended lower today as investors were downbeat on the Yahoo-Microsoft situation over the weekend. Mergers and acquisitions activity has traditionally worked to boost shareholder value and Microsoft's decision to abandon their bid led to an immediate decline in Yahoo shares. Meanwhile, investors continued to digest economic reports from last week that suggested a recovery in the credit crisis may be closer than once thought.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Monsanto Company (MON) - Monsanto is up about 2% in midday trading Monday to $117.55 on a quiet day for a stock that almost exactly a year ago closed at $59.71 per share. The obvious question is with a market capitalization of over $64 billion, how much more phenomenal share price growth can the company muster? Based on recent results, market developments, and Wall Street sentiment Monsanto may have only started to blossom. (Read More)
2. Polo Ralph Lauren Corporation (RL) - Ralph Lauren's high-end apparel may not be the best market right now, but the economic decline may create a buying opportunity for bargain hunters. Apparel makers dropped today amid a broader market decline fueled by last week's economic reports and the failed merger between Yahoo and Microsoft. (Read More)
3. Companhia Vale do Rio Doce (RIO) - Vale is the world's largest producer of iron ore which is used as a raw material in the production of the steel. The company has seen record growth in recent years as developing nations like China have consume an increasing amount of steel to build up their infrastructure. (Read More)
4. Freeport-McMoRan Copper & Gold Inc. (FCX) - Freeport shares surged higher today amid strength in the two commodities. Gold prices rose $7 per ounce to $857.90 while copper prices jumped $0.12 per pound to $3.82. Many investors are also bullish on the firm's prospects as copper price assumptions for 2009 have been raised substantially from $2.75 per pound to $4.50 per pound. The result has been at least one analyst raising his target to $200 per share. (Read More)
5. iStar Financial Inc. (SFI) - iStar shares are up nearly 10% in midday trading Friday after reporting mixed first quarter results. The New York city-based financial company that primarily lends to owners of commercial real estate announced earnings of 87 cents per share for the first three months of the year compared to 93 cents per share a year earlier. Despite this 6.5% drop in earnings, the company matched Wall Street estimates of 87 cents per share earnings, while revenues of $422.4 million actually beat estimates of $411 million. (Read More)
   

Technical Analysis

1. Marathon Oil Corporation (MRO) - Intermediate-term bullish bottom triangle.
2. Micron Technology Inc (MU) - Long-term bullish double bottom.
3. Whole Foods Market Incorporated (WFMI) - Intermediate-term bullish double bottom.
4. Regions Financial Corporation (RF) - Long-term bullish head and shoulders bottom.
5. Sun Healthcare Group Incorporated (SUNH) - Intermediate-term bullish double bottom.
   

Stock of the Week : Ag Giant Monsanto Poised for More Growth

Monsanto Company (NYSE: MON) is up about 2% in midday trading Monday to $117.55 on a quiet day for a stock that almost exactly a year ago closed at $59.71 per share. The obvious question is with a market capitalization of over $64 billion, how much more phenomenal share price growth can the company muster? Based on recent results, market developments, and Wall Street sentiment Monsanto may have only started to blossom. (Read More)

Article of the Week : Retirement Savings with Roth IRAs

Roth IRAs are a great way to supplement your retirement income without paying the government too much. The retirement account was designed in 1998 as part of the Taxpayer Relief Act and enables individuals to forego deductions on contributions to instead cash out all of your earnings tax free. The program also provides some more lenient guidelines on early withdrawal for valid purposes. (Read More)

Final Words

The future of the U.S. economy remains uncertain despite an improvement in the financial sector thanks to dealmaking. Overall, the economy seems to be heeling, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.

Weekly Market Overview

The markets began the week mixed as investors appeared unethusiastic about acquisition news and were cautious of upcoming earnings and economic reports. The big news of the day was Mars Inc.'s offer to purchase Wm. Wrigley Jr. Co. for about $23 billion in cash, which will be financed with the help of billionaire investor Warren Buffett. Activist Kirk Kerkorian also plans to make an offer to extend his stake in Ford, saying he sees signs that the firm's turnaround plan is working. On the flip side, Continental Airlines decided that it would not join with United Airlines despite rumors to the contrary last week. Meanwhile, the Federal Reserve is expected to cut interest rates by a quarter point before leaving them steady for the remainder of the year.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Alliance Resource Partners (ARLP) - The coal industry is starting to reignite after Alliance Resource Partners reported strong quarterly earnings that beat analyst expectations. Record revenues and coal sales volume helped the coal company report an increase in EBITDA despite lower net income due to the loss of synfuel-related benefits along with capital expenditures associated with various growth initiatives. Regardless, the bottom-line improvement has many investors bullish on the news. (Read More)
2. Baidu.com Inc. (BIDU) - China's Internet presence is growing and several companies are well positioned to reap the rewards. Baidu.com Inc. and Sohu.com Inc. are two portal operators that stand to benefit the most as China's online adult population now stands at 221 million, which puts them on par with the United States. However, great potential remains with just 16% of China's population online, compared to 71% of the United States population. (Read More)
3. Hyperdynamics Corporation (HDY) - Hyperdynamics Corporation surged more than 50% Friday after confirming it has discovered giant structures in West Africa usually associated with oil and gas reserves. The Texas-based oil and gas exploration and production company owns the rights to 31,000 square miles of land off the coast of the Republic of Guinea in West Africa where these geological discoveries were made. (Read More)
4. Tenet Healthcare (THC) - Tenet Healthcare shares soared over 10 percent last week after it was upgraded by Credit Suisse to outperform from neutral based on improving hospital pricing trends and progress in its turnaround. The analyst also raised the price target on the stock to $8 per share from $6 per share. (Read More)
5. Goodrich Corporation (GR) - Goodrich Corporation, the world’s largest maker of airplane landing gear, is up nearly 10% today after beating first quarter earnings expectations and increasing its full year profit outlook. (Read More)
   

Technical Analysis

1. E Trade Financial Corporation (ETFC) - Intermediate-term bullish diamond bottom.
2. Wells Fargo & Company (WFC) - Intermediate-term bullish diamond bottom.
3. Foundry Networks Incorporated (FDRY) - Intermediate-term bullish double bottom.
4. Home Depot Incorporated (HD) - Long-term bullish diamond bottom.
5. Qlogic Corporation (QLGC) - Intermediate-term bullish continuation diamond.
   

Stock of the Week : Candidates' Plans Could Boost Cable Operators

Broadband Internet has become a hot topic for debate among the U.S. presidential candidates. Many believe that broadband is one of the key components needed to maintain competitive advantage over other nations. The Internet not only affords a vast amount of information, but can also create information jobs and support small businesses. Unfortunately, the United States has already dropped from a #1 position in worldwide broadband penetration down to #15. (Read More)

Article of the Week : Retirement Savings with Roth IRAs

Roth IRAs are a great way to supplement your retirement income without paying the government too much. The retirement account was designed in 1998 as part of the Taxpayer Relief Act and enables individuals to forego deductions on contributions to instead cash out all of your earnings tax free. The program also provides some more lenient guidelines on early withdrawal for valid purposes. (Read More)

Final Words

The future of the U.S. economy remains uncertain despite an improvement in the financial sector thanks to dealmaking. Overall, the economy seems to be heeling, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.

Weekly Market Overview

The U.S. markets pulled back today amid weaker-than-expected earnings reports from Bank of America, which reignited concerns about the health of the economy. Back of America reported that its first quarter earnings fell 77% thanks to more writedowns and widening credit losses. The move ruined the positive mood seen last week among corporations reporting strength both domestically and abroad. Major indexes erased some of last weeks 4% gains as the market looks forward to future reports.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Sun Microsystems (JAVA) - Sun Microsystems shares continued their rally this week despite concerns about the future of its flagship database product MySQL. The technology giant was hit with a wave of criticism from open source advocates after officials disclosed plans to reserve some of its key upcoming features for paying customers. (Read More)
2. First Solar (FSLR) - First Solar has beat earnings expectations by a wide margin for every quarter in its short history. The company is set to announce its first quarter financial results on April 30th. The solar industry leader is expected to post earnings per share between $0.36 and $0.63 with an average analyst estimate of $0.47. However, shareholders are more bullish with shares trading at a lofty 204.1x current earnings with a P/E to growth ratio of 2.01x. (Read More)
3. Wendy's International (WEN) - Wendy's shares are up sharply this week after the company disclosed an activist investor unveiled two takeover proposals. Unfortunately, both were rejected by the fast food chain despite hefty premiums to the going market price. Nelson Peltz's Trian Fund Management has not stopped fighting, however, as the company progresses with its review of strategic alternatives. (Read More)
4. Baidu.com Inc. (BIDU) - Chinese Internet search giant Baidu.com is benefiting heavily today from Google Inc. unexpectedly strong results. Baidu.com is up significantly on sentiment that Google is a good barometer for the entire Internet search sector, but especially Baidu.com. (Read More)
5. Silver Wheaton Corp. (SLW) - Silver stocks declined today following a 5.1 percent drop in the commodity amid a rise in the value of the dollar. The move comes after the metal had climbed 23 percent this year on the rush into commodities during the weak economy. Other metals, including gold and palladium, also declined sharply on the day. (Read More)
   

Technical Analysis

1. Gemstar-Tv Guide International (GMST) - Intermediate-term bullish diamond bottom.
2. Fiserv Incorporated (FISV) - Long-term bullish continuation diamond.
3. Verisign Incorporated (VRSN) - Intermediate-term bullish symmetrical continuation triangle.
4. Express Scripts Incorporated (ESRX) - Intermediate-term bullish ascending continuation triangle.
5. Memc Electronic Materials Incorporated (WFR) - Long-term bullish continuation diamond.
   

Stock of the Week : The Wendy's Versus Peltz Drama Unfolds (WEN)

Wendy's International (NYSE: WEN) shares are up sharply this week after the company disclosed an activist investor unveiled two takeover proposals. Unfortunately, both were rejected by the fast food chain despite hefty premiums to the going market price. Nelson Peltz's Trian Fund Management has not stopped fighting, however, as the company progresses with its review of strategic alternatives. (Read More)

Article of the Week : Retirement Savings with Roth IRAs

Roth IRAs are a great way to supplement your retirement income without paying the government too much. The retirement account was designed in 1998 as part of the Taxpayer Relief Act and enables individuals to forego deductions on contributions to instead cash out all of your earnings tax free. The program also provides some more lenient guidelines on early withdrawal for valid purposes. (Read More)

Final Words

The future of the U.S. economy remains uncertain despite an improvement in the financial sector thanks to dealmaking. Overall, the economy seems to be heeling, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.

Weekly Market Overview

Stocks ended the session quietly after investors spent the majority of the day trying to determine the health of corporate profits. Wachovia Corporation and Royal Philips Electronics dominated the news by posting disappointing earnings while energy prices also continued their rise. However, investors appeared to be pausing following Friday's sell-off ahead of a slew of quarterly results and economic data due to arrive this week.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. PDL BioPharma Inc. (PDLI) - PDL BioPharma annnounced today that it would spin-off its antibody humanization royalty assets from its biotechnology operations to unlock shareholder value. Simultaneously, the company declared a special dividend of $4.25 per share payable to stockholders of record on May 5th using proceeds from recent asset sales. (Read More)
   
2. Select Comfort Corporation (SCSS) - Select Comfort shares may be well off of their $19/share 52-week highs, but at several professional investors are giving this stock a second look. The depressed levels have led to several analyst upgrades as well as at least one activist hedge fund that has taken a positive stance. (Read More)
3. Mac-Gray Corporation (TUC) - A large Mac-Gray shareholder expressed disappointment on Friday in a Schedule 13D/A filing with the SEC. Fairview Capital, which has pushed for changes in the past without success, told the board that the "rising tide of discontent" amongst shareholders has reached a peak and changes are necessary now to preserve shareholder value. (Read More)
4. Bassett Furniture Industries Inc. (BSET) - Bassett management was caught sitting around on the job, according to at least one activist hedge fund. Costa Brava, which owns just over five percent of the company, recently expressed its disappointment with the furniture business and initiated a proxy contest in order to install its own board members to enforce change. So, should shareholders support these new board candidates? (Read More)
5. Dillard's Inc. (DDS) - Dillard's announced an agreement with many of its dissident shareholders in a move designed to avoid an expensive proxy contest. Activist hedge funds Barington Capital and the Clinton Group agreed to forgo a proxy contest in exchange for the voluntary nomination of four of its proposed directors. Additionally, the board agreed to review whether the company's real estate assets and capital are being optimally deployed to build shareholder value. (Read More)
   

Technical Analysis

1. Scientific Games Corporation (SGMS) - Intermediate-term bullish double bottom.
2. Lsi Corporation (LSI) - Intermediate-term bullish bottom triangle.
3. Myriad Genetics Inc. (MYGN) - Intermediate-term bullish head and shoulders bottom.
4. Thoratec Corporation (THOR) - Intermediate-term bullish megaphone bottom.
5. Pioneer Natural Resources Company (PXD) - Long-term bullish upside breakout.
   

Stock of the Week : Circuit City (CC)

Blockbuster Inc. (BBI) announced today that it has offered to acquire Circuit City Stores, Inc. (CC) for between $6.00 and $8.00 per share in cash. The original offer was made back in late February, but rebuffed by the electronic retailers' board, which refused to provide the due diligence necessary to make a definitive proposal. (Read More)

Article of the Week : Need More Time to Pay Your Taxes?

Taxes comes up quicker than most people expect and sometimes it can be difficult to come up with the cash. Those who are not able to file their taxes by April 15th can file a Form 4868, or an application for automatic extension, with the Internal Revenue Service (IRS) to get an additional six months to pay. The extension is an affordable way to get more time to come up with the money to pay your taxes. (Read More)

Final Words

The future of the U.S. economy remains uncertain despite an improvement in the financial sector thanks to dealmaking. Overall, the economy seems to be heeling, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.

Weekly Market Overview

Stocks rose today after reports of potential corporate deals surfaced and sent the indexes higher. Washington Mutual led the pack with speculation that it might get a $5 billion investment from private equity firms. Such deal-making is often seen as a bullish sign and could signal that stocks are starting to recover from a decline in consumer credit amid a slowing economy. The other big story was the exchange between Yahoo and Microsoft where a three week deadline was established but no further news emerged. All in all, this deal-making is great news for the markets after last week's disappointing employment data.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Motorola Inc. (MOT) - Motorola Inc. will be calling upon two of Carl Icahn's nominees for election to its board as part of a truce with the activist shareholder. Let's just hope their using Motorola phones: The cellphone-maker's shares have fallen nearly 50% over the past year thanks slowing sales. (Read More)
2. Select Comfort Corporation (SCSS) - Select Comfort shares may be well off of their $19/share 52-week highs, but at several professional investors are giving this stock a second look. The depressed levels have led to several analyst upgrades as well as at least one activist hedge fund that has taken a positive stance. (Read More)
3. Southwest Airlines (LUV) - Airlines are struggling to get any lift amid record oil prices and a weakening economy. ATA Airlines and Aloha Airlines both shut down operations and filed for bankruptcy this week alone while larger carriers like Northwest Airlines are raising prices and cutting routes to stay alive. In fact, the only airline eking out a profit seems to be Southwest Airlines. (Read More)
4. Bassett Furniture Industries Inc. (BSET) - Bassett management was caught sitting around on the job, according to at least one activist hedge fund. Costa Brava, which owns just over five percent of the company, recently expressed its disappointment with the furniture business and initiated a proxy contest in order to install its own board members to enforce change. So, should shareholders support these new board candidates? (Read More)
5. Dillard's Inc. (DDS) - Dillard's announced an agreement with many of its dissident shareholders in a move designed to avoid an expensive proxy contest. Activist hedge funds Barington Capital and the Clinton Group agreed to forgo a proxy contest in exchange for the voluntary nomination of four of its proposed directors. Additionally, the board agreed to review whether the company's real estate assets and capital are being optimally deployed to build shareholder value. (Read More)
   

Technical Analysis

1. JDS Uniphase Corporation (JDSU) - Intermediate-term bullish bottom triangle.
2. Crocs Incorporated (CROX) - Long-term bullish continuation wedge.
3. Corinthian Colleges Inc. (COCO) - Intermediate-term bullish bottom triangle.
4. Lam Research Corporation (LRCX) - Intermediate-term bullish double bottom.
5. Coach Incorporated (COH) - Intermediate-term bullish megaphone bottom.
   

Stock of the Week : Bassett Furniture Industries Inc. (BSET)

Bassett Furniture Industries Inc. (NDAQ: BSET) management was caught sitting around on the job, according to at least one activist hedge fund. Costa Brava, which owns just over five percent of the company, recently expressed its disappointment with the furniture business and initiated a proxy contest in order to install its own board members to enforce change. So, should shareholders support these new board candidates? (Read More)

Article of the Week : Need More Time to Pay Your Taxes?

Taxes comes up quicker than most people expect and sometimes it can be difficult to come up with the cash. Those who are not able to file their taxes by April 15th can file a Form 4868, or an application for automatic extension, with the Internal Revenue Service (IRS) to get an additional six months to pay. The extension is an affordable way to get more time to come up with the money to pay your taxes. (Read More)

Final Words

The future of the U.S. economy remains uncertain despite an improvement in the financial sector thanks to dealmaking. Overall, the economy seems to be heeling, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.

Weekly Market Overview

Stocks rose moderatley today as investors await data on the manufacturing sectors and details of a government plan to overhaul the way Wall Street is regulated. Volume was also light as many institutional investors had closed their books for the quarter that ended with this session. The quarter itself was disappointing as financial conmpanies continue to experience credit market losses while the poor economy wiped out any appetite for individual investors. There were a few up days, but the overall market still trended down. Whether or not it improves during the next week and quarter depends largely on an economic recovery.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Gannett Company (GCI) - The newspaper industry is making the news, but not in a good way. The Newspaper Association of America reported that ad revenues in the industry have fallen by 9.5 percent in the biggest drop in any year since 1950. The decline comes at the heels of an economic slowdown and an increase in online advertising that together have put a damper on the fourth quarter - a peak period for ad sales. (Read More)
2. Citigroup Inc. (C) - Investors are looking for change and new chief executive Vikram Pandit is ready to act. The bank announced a broad restructuring move after the banking giant loss half of its market value in six months thanks to the sub-prime crisis. The new additions to the larger restructuring plan involve breaking up the consumer banking group into regional divisions and separating its credit card division. (Read More)
3. Take-Two Interactive (TTWO) - As reported here Wednesday, Take-Two Interactive Software's board rejected Electronic Art's most recent buyout offer, saying that it was not in the best interest of shareholders. Instead, the company also confirmed that it would explore strategic alternatives to maximize shareholder value in other ways that could deliver a higher value than the current $2 billion EA offer. (Read More)
4. Captaris Inc. (CAPA) - Captaris may be able to efficiently manage business data, but a strategic review of its own company is another story. Private equity firm Vector Capital offered to acquire the software company for $4.75 per share just last week, but the deal fell through after the company failed to take any decisive action. Now many shareholders are left wondering whether any deal will be done at all. (Read More)
5. Motorola Inc. (MOT) - Motorola Inc. may have agreed to Carl Icahn's proposed spin-off, but they are not out of the woods yet. The billionaire activist investor sent another letter to the board (via a Schedule 13D/A filing) earlier this week bringing up several concerns about the speed and manner in which a new management team is selected for the mobile devices division. (Read More)
   

Technical Analysis

1. Sohu.Com Inc. (SOHU) - Intermediate-Term Bullish Symmetrical Continuation Triangle.
2. Novartis Ag Ads (NVS) - Intermediate-Term Bullish Megaphone Bottom.
3. Energy Conversion Devices Inc. (ENER) - Long-Term Bullish Diamond Bottom.
4. Fuel Systems Solutions Inc. (FSYS) - Intermediate-Term Bullish Head and Shoulders Bottom.
5. Dealertrack Holdings Inc. (TRAK) - Intermediate-Term Bullish Continuation Wedge.
   

Stock of the Week : Google Inc. (GOOG)

New research data shows that online advertising is beginning to run out of steam at what could become a turning point for the industry. Many analysts have been concerned that such trends would continue as the industry began to mature, but the decline in consumer spending could expedite the process as fewer consumers click on ads while more publishers are looking to fill ad inventory. The big question is whether or not this trend will be permanent. (Read More)

Article of the Week : Predict Stock Momentum with the MACD

Moving Average Convergence/Divergence (MACD) is one of the most common tools used by traders to determine the direction and momentum of a given stock. The standard MACD formula involves subtracting a stock's 26-day exponential moving average (EMA) from its 12-day EMA to create a single line that fluxuates above and below zero. The theory is that the movements of this line can be used to make accurate predictions. This article will take a look at what exactly the MACD is and how you can use it to profit! (Read More)

Final Words

The future of the U.S. economy remains uncertain desite an improvement in the financial sector. Overall, the economy seems to be heeling, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.

Weekly Market Overview

The big news on Wall Street today was J.P. Morgan's quintupled buyout price for the trouble Bear Stearns, which came as a result of one faulty line in the original buyout offer that promised to cover liabilities indefinitely. Meanwhile, the housing market got some good news when the number of home sales increased quarter over quarter for the first time in seven months, signaling that a bottom may be in sight. However, on the other side of the coin prices dropped over 8% in the largest downward move on record. All in all, the financials are continuing to improve this week while consumers may still have awhile to go!

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Capital Senior Living (CSU) - Activist investors have successfully pushed this company towards a sale situation. The operator of senior living centers announced that it has appointed two new activist directors while agreeing to explore a potential sale.
2. Borders Group (BGP) - Activist investor Bill Ackman offered the company financing along with a low-ball offer to purchase its international businesses. While the activist's offer is low, it may prompt other bidders to pursue the company that can now afford to stay alive for at least another year.
3. Micrel Inc. (MRCL) - Shareholders in this company have demanded that it immediately pursue a sale to unlock value. Given their 9.6% ownership in the company, this is a situation that is definitely worth watching.
4. General Mills (GIS) - This well-known company has benefited from a well-timed derivatives hedge against rising commodity prices while also outperforming many of its peers. These strong fundamentals make this company one worth watching over the next few months.
5. NYSE Euronext (NYX) - The most popular exchange in the world unveiled two new plans to boost shareholder value: a dividend and share buyback. Combined, these can only mean good news for shareholders despite minor concerns by ratings agencies that it may weaken their balance sheet.
   

Technical Analysis

1. Knight Capital Group (NITE) - Intermediate-term bullish continuation diamond.
2. Mastercard (MA) - Long-term bullish continuation diamond.
3. Telefonos De Mexico Sab De C.V. (TMX) - Intermediate-term bullish continuation diamond.
4. Alliance Data Systems (ADS) - Intermediate-term bullish bottom triangle.
5. Janus Capital Group (JNS) - Intermediate-term bullish continuation wedge.
   

Stock of the Week : Bear Stearns (BSC)

The Bear Stearns (NYSE: BSC) roller coaster ride took another sharp turn today after J.P. Morgan (NYSE: JPM) agreed to quintuple its offer for troubled investment bank. The move came amid widespread criticism that J.P. Morgan was getting a free ride on the backs of Bear Stearns shareholders. The new $10 per share takeover is slated to close by April 8th and now has much greater shareholder support. (Read More)

Article of the Week : Recover from Investment Losses more Quickly

Many investors have experienced a loss on an investment and simply want to break even on the trade. Unfortunately, this isn't possible without committing more capital to your losing position in order to "average in" at a lower price. Or is it? The Stock Repair is an options strategy that lets you give up any profit potential in exchange for a new, reduced break even point, without committing any new capital! (Read More)

Final Words

The future of the U.S. economy remains uncertain desite an improvement in the financial sector. Overall, the economy seems to be heeling, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.