TheRumpledOne
6,411 posts
msg #47904
- Ignore TheRumpledOne |
11/10/2006 2:24:21 PM
Dear Reader:
A few weeks ago in my investment advisory service, New America Investor, I made a call for Dow 15,000 within two years.
Here's the technical rationale:
If you look at the chart above, you'll see that resistance (previous high) is roughly around 11,800. That high was set in 2000.
Support is just a few ticks above 7,000, which was set in 2002. The difference between resistance and support is roughly 4700 points.
Now, the Dow has broken above its previous high of 11,800. Technically, this is significant. If we add 4700 points to 11,800, we come up with 16,500. That's a rational price target for the Dow.
When do we get there? Anybody's guess.
However, I think the next two years are going to be great for stock investors.
Here's why . . .
Republicans in the White House + Democrats in Congress = GRIDLOCK
When the Dow broke out to new record highs in October, it was in reality predicting a Democratic sweep in Congress.
Don't take this wrong way. The Dow is neither a Democrat nor Republican. It doesn't care whether Nancy Pelosi is Speaker of the House or Mickey Mouse.
What the market loves is gridlock. With the Dems in control of Congress and with Bush in the White House for two more years, the word on the Street is gridlock, baby!
And gridlock is to the stock market what grease is to gears.
Why?
Because while the Dems and Republicans beat each other over the head for the next two years, the markets won't be bothered by "do-gooder" politicians who think they know how to improve the economy.
The promise of gridlock is already paying dividends. Check this out. I've recommended a total of 17 stocks this year in New America Investor. Of those 17, only two are in the negative. And one of those is down just 3%.
NAI Portfolio
Company Symbol Exch. Date Initial Current
or Sold Status Percent
Traffic.com Inc. TRFC NASDAQ 2006-06-31 $5.47 $7.35 Sold 34.36%
PowerShares Lux Nanotech PXN AMEX 8-23-2006 $17.75 $18.04 Buy 1.633%
Censored *** Nasdaq 10-24-2006 $26.00 $28.00 Buy 8.0%
Censored *** Nasdaq 11-07-2006 $1.95 $2.00 Buy 2.5%
MMC Energy Inc. MMCN.OB OTCBB 06-01-2006 $2.36 $1.74 Buy -26.2%
Zoltec Companies Inc. ZOLT Nasdaq 06-13-2006 $22.42 $22.81 Buy 1.739%
Freescale Semiconductors Inc. FSL NYSE 7-11-2006 $28.60 $37.00 Sold 29.37%
NVE Corp. NVEC NASDAQ 7-14-2006 $16.45 $37.50 Sold 127.9%
SiRF Technology SIRF NASDAQ 8-02-2006 $19.00 $28.38 Buy 49.36%
Censored *** OTCBB 8-11-2006 $6.00 $8.20 Buy 36.66%
American Science & Engineering ASEI NASDAQ 6-6-2006 $56 $62.83 Hold 12.19%
Censored *** OTCBB 8-15-2006 $3 $3.40 Buy under $4 13.33%
Censored *** Nasdaq 09-22-06 $9.30 $9.36 Buy under $9.75 0.645%
Spartan Motors SPAR NASDAQ 8-18-2006 $16.75 $23.14 Hold 38.14%
Censored *** Nasdaq 10-20-2006 $3.90 $4.30 Hold 10.25%
DIAMONDS TRUST DIA AMEX 10-13-2006 $118 $120.97 Hold 2.516%
Gofish GOFH.OB OTCBB 2006-10-31 $4.20 $4.05 Buy -3.57%
Total Portfolio (+/-) : 22.857 %
In fact, we sold Traffic.com (TRFC:NASDAQ) this past Tuesday for a profit of 34% when the company announced it was being acquired. We bought Traffic.com on June 31, 2006. So think about that . . . we took a profit of 34% on a stock we've own for just four months!
But as good as 34% in four months is, today I want to tell you about a stock I think will quadruple over the next 24 months.
The company makes an armored vehicle that's used to search and destroy improvised explosive devices (IEDs).
Now, you might think that with Rumsfeld out and the Democrats in, defense spending will be slashed.
Nothing could be further from the truth. You see, Rumsfeld sent our men and women into Iraq with insufficient equipment. And we've all heard the stories about soldiers in Iraq having to buy body armor . . . on eBay!
The Democrats think they have solutions to the problem, one of which is giving our soldiers the very best equipment.
And it didn't take long. Just two days after Rumsfeld's resignation, this armored vehicle company landed a $214 million contract with the US Marines. The stock immediately ran up 20% in the first three hours of trading.
The stock currently trades for $8 a share . . . but I think it'll be four times that. Impressive? Yes.
But not as impressive as the performance of this armored vehicle. Not a single American soldier has ever been killed while inside of it.
In fact, one American soldier said the following:
"I feel so safe that I would put my wife and child in it and ride down any street in Baghdad."
If you want to see this armored vehicle in action, go here: http://wealthdailymail.com/cntdir.asp?num=1069
Sincerely,
Brian Hicks
http://wealthdailymail.com/cntdir.asp?num=1069
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