Weekly Stock Pick

Scanning the stock charts this week after last weeks worst market performance I’ve ever seen, ( i’ve been investing trading the markets since 1989 ) you may think twice about taking long positions right now, or it makes you think the market could be bottoming. I’m thinking both ways actually. I think we are in a long-term bear market, and it will continue for some time. In the short to intermediate term, I am looking for a reversal back to the upside up to previous support which is now current resistance.

The only decent high reward low risk long or short trade I could find for this week is a long position on a building materials manufacturer that provides energy efficient materials for homes and buildings. As Boone Pickens has said, the next big potential crisis after the financial sector melt-down, is the energy sector. So, if the USA doesn’t get their act together on the energy situation, we will just be sending more money to the Middle East for more oil as we’ve been doing in the past.

We do need to improve our dependency of energy going forward into the long-term future to reduce energy dependency, and this company provides much needed materials to provide that energy efficiency to buildings that currently waste about 40% of America’s total energy according to the U.S. Department of Energy. Buildings are clearly the primary energy user in the USA followed by industry and transportation. This stock pick of mine is a buy long trade only right now. With the current market environment, I wouldn’t want to be buying and holding right now.

Buy Long Owens Corning. Ticker OC

Buy Entry: Buy at 17.62 to 18.42.

Stop-Loss: 17.00. Tight stop-loss for the current market environment.

Note: If 17 gives way, OC price could head down further to possibly 12.26 to 12.80 from what my chart supports are telling me, which could make a very nice buy in position for the long term.

Take Profit Areas:

23.72 to 25.71

27.38 to 29.55

29.65 to 32.01

Owens Corning Company Profile from Google Finance

Owens Corning is a producer of residential and commercial building materials and glass fiber reinforcements, and other similar materials for composite systems. It operates within two product categories: building materials, which includes its Insulating Systems, Roofing and Asphalt, and Other Building Materials and Services segments, and composites, which includes the Composite Solutions segment. Through its building materials product category, Owens Corning manufactures and sells products primarily in the United States, Canada, Asia and Latin America, and through its composites product category, the Company manufactures and sells products worldwide. On November 1, 2007, Owens Corning acquired Saint-Gobain's reinforcements and composite fabrics businesses. In August 2007, the Company sold its Siding Solutions business, a component of its Other Building Materials and Services segment. In September 2007, the Company its Fabwel unit, a component of its Composite Solutions segment.

Click the OC Stock Chart for a larger view.



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