The Ongoing Bear Market May Find Support Soon

Alright, we are piling up paper losses and it seems like there is no end to this downward spiral.
Looking at the S&P500 chart, i see a hint of some near term support. Should the S&P500 index close at or above 1120 within the next two weeks, I would expect this point to be the bottom and we could see a turn around of the markets.
Look for stocks in the heavy construction sector to be the leaders in this cycle. Some of these candidates are: Granite Construction Inc. (GVA 18.20), Terex Corp. (TEX 14.32), Foster Wheeler (FWLT 21.40) and KBR Inc. (KBR 27.26) to name a few.
Extreme caution should be taken before going "all in" at this time, we must be very selective in our choices.
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Time to Move Out of KBR

Written up on October 7, 2008 and again on January 29, 2009 with prices at 15.28 and 15.43 respectively, KBR Inc. had a tremendous run and after yesterday's drop of 1.41 (down 5.87%) we may have heard a wake up call to take profits.

This retreat clearly marked a break down below the 50 day moving average with a weak support at 21.50.

After gaining approximately 47.25% over a period of less than one year and selling for 22.61,i can happily call it a day and search for other opportunities.
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Watch List for the Week of 9/8/09 - Last Week's Recap

Stocks to watch for the week of 9/8/09:

ATW 28.32
COV 39.60
DOX 24.91


Recap for the week of 8/31/09:

on 9/1-------------on 9/4

EZPW 13.37---------12.63 (down 5.53%)
KBR 22.65-----------21.81 (down 3.71%)
PFE 16.70-----------16.39 (down 1.86%)
SEPR 18.15----------22.82 (up 25.73%) Luckyyyyy!!!

One pick (SEPR) saved our week.
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Expect a Drop Today - Last Week's Recap

Due to the significant drops in the Asian markets overnight, I am delaying the weekly watch list for at least one day. As a result, expect major losses today in the U.S. from the fallout.

Recap for the week of 8/10/09:
on 8/10------------on 8/14

AKAM 19.46---------18.01 (down 7.45%)
ATW 28.96----------28.08 (down 3.04%)
COV 38.16----------39.09 (up 2.44%)
KBR 22.42----------22.86 (up 1.96)

Hang on for dear life.
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Watch List for the Week of 8/10/09 - Last Week's Recap

Stocks to watch for the week of 8/10/09:

AKAM 19.46
ATW 28.96
COV 38.16
KBR 22.42

Recap for the week of 8/3/09:

on 8/3------------on 8/7

COV 37.81---------38.16 (up .93%)
ATW 28.84---------28.96 (up .42%)
GE 13.40----------14.70 (up 9.70%)
PFE 15.93---------15.96 (up .19%)


Have a profitable trading week.
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Time to Load Up on KBR?

The chart pattern for KBR seems to be holding well. I would add to my position (today at 15.43) on a small pull-back.
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KBR Looks Like a Good Prospect

Bottom fishing for value stocks has yielded an interesting prospect, KBR Inc. (KBR).

KBR, Inc. operates as an engineering, construction, and services company supporting energy, petrochemicals, government services, and civil infrastructure sectors worldwide.

Positive factors include:

• Volume at approximately 3.6 million average shares/day
• P/E is at 9.29
• Current price at 66.2% below the 52 week high
• Steady earnings increase since '06
• Trading today at 15.28

We could be seeing a bottom in the price of this stock