Sunday, August 05, 2007

Louis Navellier 5 Best Stocks to Buy for the Next 12 Months

The following 5 stock picks as of today's date are from Louis Navellier's Blue Chip Growth Letter. These stock picks are in his "free" report. They are all from the Conservative portion of his Blue Chip Growth Letter Buy List. He advocates putting 60% of one's portfolio into conservative companies that pay dividends.

Let's see what the monthly charts for these stocks look like:


Navellier says to buy this stock "now", while Jim Cramer is "watching" it, as he has included it into his Mad Money Mortgage Index. In any case, the monthly chart sure looks bearish. First short term support I see for this is at the $166 area, but the real test is the LIS of $133.70 area.


RCI looks like it has had a very nice run. There are no clear sell signals based on the monthly chart, but there sure is a sell signal off the weekly chart. Time for profit-taking. If Navellier is right about this stock, there should be a buy signal off the weekly chart to indicate proper entry. Watch this one carefully.


No clear sell signal off the monthly chart as of yet, but there are clearly warning signs for profit taking if one was long this stock from way below. Watch this stock carefully for either continuing weakness or for support.


There was a clear sell signal off the monthly and weekly chart with the lower high. Price is currently at short term support at the .382 fib level. If this does not hold, the next support level is at the LIS of $18.81.


Price made a slightly higher high, and then quickly fell below the key LIS and prior high of $66.75. It looks like the stock could be completing a final wave 5. Watch the coming weeks for comfirmation of a sell signal. A confirmation will be a break of the UTL in place.

It is interesting that Navellier uses the "buy" recommendations to entice us to subscribe to his Blue Chip Growth Letter, but neglects to provide a more balanced analysis by including a couple of "sell" recommendations.

No comments: