Stock Market Commentary for 7/11/08

Thursday, US equities rebounded slightly after the 236-point decline of the DJIA on Wednesday. Many oil stocks strengthened as crude oil futures soared back to 142 dollars a barrel on the heels of repeated missile tests by Iran. Thus, you can see from our computer-generated HHI Index that oil-service stocks CRK, GMXR, and FSYS are back in play after sharp declines earlier in the week. The financial sector continues to be challenged, and market conditions remain weak. Our Viable Acquisitions Index has risen to 71 for Friday after hitting a record low of 25 last week. However, this index is still in the yellow cautionary zone. Some traders are speculating that we may need a time of sharp market capitulation before we can re-enter a bull market trend. Meanwhile, our computer model continues to identify stocks that are near their 52-week highs and that have more than doubled in price during this challenging stock market year. I wish you every success in trading as you proceed with unusual caution.

Best wishes, GH

The HHI Index for Friday, July 11, 2008 is as follows:

+7 (very strong buy) — NONE, /

+6 (strong buy) — PARL, NSYS, CRMT, /

+5 (buy) — LBAS.OB, CRK, CYBX, HCKT, ERES, /

+4 (hold) — GETG.PK, GMXR, FSYS, HIRE, GHM, AZZ, AFAM, /

Daily Stock Market Commentary is accompanied by a daily Bible Reflection.

• Today's Bible Reflection: Reflections on Psalm 32
• Yesterday's Stock Market Commentary
• Yesterday's Bible Reflection: Reflections on Psalm 31
• What is the HHI Index?

_{The HHI Index is a list of stock ratings derived from a proprietary computer model and are being shared as a public service with no guarantee of or responsibility for trading success. Readers are strongly encouraged to do their own research and to exercise caution in all trading activity. Click here for an explanation of the HHI Index.}

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