Profits could rise 10% with most companies in 2010

*Top Stocks have EPS growth rates of at least 40% prior to major advances. This is an easy way to help identify strong potential breakout stocks. Make note, however, that with breakout stocks it is critical to buy at the pivot point that springboards to upside, and to set tight 7-8% stop losses on your buy. This makes it harder and harder to effectively buy a break out stock that won't lose 7 to 8% on any now typical 2% Dow move day.

With the market itself spring loaded, however, for upside profits could now exceed and leap 10% a quarter; that is, if we follow history of recessions.

This is important.

Gene Epstein in Barron's 11/16/09 issue strikes a logical argument in Upwardly Mobile. There is logic to his thinking, based on a "scaled back company", and IF unemployment stays high:

http://online.barrons.com/article/SB125816514286948047.html

If Playboy sells to Iconix (Playboy one of our Blue Chip recommendations) one of the largest assets being sold for the $300 million price tag is the rabbit ear logo.

Here it is proven that something worth nothing is worth something and that what is not real has value.

Fibonnacci Patterns

We are sending this as a combined OEX and BCO alert as our instructions are similar, and the market tendencies on the OEX and DOW are showing strong characteristics.

1. A Classic 3:1 OEX And Dow Pnf chart show higher highs, almost to the point of frenzy

2. Alternate views show more hesitancy, but strong bullish tendency

3. More and more investments are moving to the "blue chip" stocks, by traders institutionally, and by the hoards of cash Joe the Traders have that bulls believe is just now being invested, "don't want to miss out" and is what will fuel more upside.

4. This is likely. At 10,740 the market hits a 62% retracement from our market bottom, a Fibonnaci top.

5. This has occurred much more quickly than the market itself can believe and it is now possible by Fibonnci chartists to see up to a 38% retracement from these highs.

We see the move to blue chips as a strategic and smart move by institutional investors, shielding in dividends, and more solid balance sheets.

Short term Floyd is bullish to the market. We may see the Fib tops soon. As we see these tops technician Robert Prechter, Elliott, and others believe we have a chance to head back down to March lows. Using Fib patterns Elliott, back in the 30's, found intricate patterns based on the Fib number sequence (in which, after 01 and 1, each number is sum of the previous two: 1,2,3,5,8,13, etc). The Fibonnaci series, like pi, appears frequently in nature.

For the market: Many retailers report earnings today. The Japan markets were closed yesterday for Labor Thanksgiving Day.

Special Appeal from Floyd: Right now subscribers of Stocks and Commodities Magazine are voting for the 10 Ten Advisory Services, on their website

www.traders.com

You must be a subscriber to vote, and if you are not a subscriber to Stocks and Commodities you should be. And I want your vote.

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I'm asking for your vote now. It would be a "personal best" for our small company (Jenn, Terry and myself) to win this again, and your vote can help.

If you like this service, please vote.

Let's Buy Trash

We will close this trading week with two potential new speculative trades, either or both to be held in our speculative portfolio.

Let's start with our sponsors:

1. Berkshire Hathaway (Warren) own s 3.62 million shares of Republic Services (RSG), the number two payer in the waste management industry.

2. Bill Gates, Buffets's buddy, has a built a 15% stake in Republic over the years, and has doubled his holdings in industry giant Waste Management (WM) to almost 16 million shares

These are well managed, asset rich companies positioned to benefit from an economic revival. Both are "value" stocks in that they are selling at a discount to the companies intrinsic value.

With both positions use PNF support lines for stop loss. As an example, with WM stop loss at 27.00,and with RSG stop loss at 23.00

These are speculative but long term trades