The Dow has been hit hard with selling, breaking through the key 11,600 support level I’ve been warning about. I said that once the Dow breaks 11,600, the bear is back in control and much lower prices are to come. That means U.S. stocks, and by default the U.S. economy, are going over the cliff. How low will it go? We need more fear in the market before a bottom comes and I see the Dow dropping to as low as 9,200 before a turnaround starts to take hold. Of course, it won't be a straight-down affair. There will be a lot of fake-out moves and with all the uncertainty out there, there will be a lot of volatility. The economic news is not good, and a lot of investors are very, very nervous, and rightfully so. What should you do? Be cautious. Stick ...

Andrew Bary, analyst/reporter at Barron’s, highlighted Ethanol companies in this week’s Barron’s.  He basically said that although it is a competitive industry (companies have a lot of debt and potential liquidity issues) and profits are volatile, the industry has government subsidiaries (until 2010) and is saving consumers money on gasoline.  And, ethanol reduced gasoline demand by 9 billion barrels annually.

Ultimately, he believes several stocks are trading at a discount to their book value. And, he says Ethanol producers VeraSun Energy (VSE), Aventine Renewable Energy (AVR) and Pacific Ethanol (PEIX) are trading below book value. All could rally in the coming year.

Check out Bary’s stock picks at:

http://www.trackthepros.com/categories.php?category_id=322

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This market looks a lot better and even though I only had one stock in my major holdings KILL IT today, I am setup for some huge potential gains, as long as this market holds up. It is looking a LOT better out there. If you are a bear, I would consider changing your robes before your butt is handed to you on a silver platter. It might not happen, but if this momo continues, you better believe the market is moving higher from here. I know one thing, I sure would NOT want to be short this market. The shorts are losing money and the longs are making money. Don’t make this harder than it is. The trend is your friend and no one should ever fight the trend…unless you have a few billion in the bank. If you don’t then forget about it. See you tonight with a fuller commentary. Or ...

Today was nearly a mirror of yesterday, minus the bigger point losses and the higher volume. But that to me doesn’t matter as what is more important is the fact that for the second day in a row the market appeared as if it was ready to crack WIDE OPEN but instead caught a heavy bid rallying into the close to pair back a lot of the damage. Yes it was a down day but it was a “good” down day. The selling was pretty bad intraday and in fact I did get a bit nervous. However, when I get nervous it is normally a good sign as the market normally doesn’t move well with my emotions. So the fact that I got a bit fearful was a contrarian signal. If I would have come back in the final hour, however, and the market would have been lower the entire tone ...

I don’t know what people are talking about. There is a LOT OF VERY BULLISH MONEY MAKING STOCKS OUT THERE!!!!! The good times will eventually end but some of you that have been so afraid of the “invisible bear” that you have now missed out on a 525% gain in MA since the August 2006 purchase. Or how about STSI the past three days. Or how about QTWW’s 70% gain in 12 days. Eventually, the market will top. But the market is not topping here. Some people need to realize a .9% rise in GDP is not a recession. LOL. I know my portfolio doesn’t show a recession. In fact, if the past two months are an indication of the summer, which I hope it is, it is going to be a GOOD 2008–even with a PATHETIC 18 VIX. I don’t have a lot of “perfect” charts out there. But I have ...

There is no doubt that I am suffering my WORST Multiple Sclerosis attack to date. Since Saturday I have basically been bed ridden and RIGHT OFF THE BAT I want to apologies if any of this is a little hard to follow because I feel like trash. I am not sure if this will effect what I am about to write but do me a favor and do NOT bust my balls if I misplace a word or misspell a word. My life is too short to deal with this. I had a completely different approach in mind when I first wanted to write this but I figure I will stick with the facts. The facts are as quickly as this market looked like good times could be returning it in fact was possibly throwing us false “all clear” signal. Now while I never fully bought into this rally due to ...