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Portfolio Stocks Why We Are Long
Friday, April 28, 2006



Afternoon Update - ADBE, CFR, CNXS, ELX, & NAT


On this update I want to discuss the reasons why I have suggested each stock.

Adobe Systems, Inc. (ADBE)- Daily Chart
I have suggested ADBE because it is the single most important stock in the tech/Application software sector. For any type of tech rally to ensue, ADBE would have to lead the way. Because of what ADBE represents, I believe it can rally or crash the whole market. ADBE has bought Macromedia and all the software that it makes. ADBE knows and directly benefits from any build out within the entire Internet infrastructure because of all the websites that are switching to or use Macromedia, Dreamweaver, and anything related to that. ADBE owns it all. When something happens to this stock the party is over. It is the only stock that I feel that way about. I regard the stock this way fundamentally because I have a website. I know the constant changes that ADBE is making. I have picked ADBE for that fundamental reason. Furthermore the technicals are beautiful. Therefore, I think it is going higher.

The weekly chart of ADBE illustrates that it has broken out of an ascending triangle pattern. ADBE has completed a pullback to test support at the break out line at $34.47. Furthermore, the indicators and oscillators are supporting this upwards reversal and showing positive divergence as well as making higher highs along with price.


Cullen Frost Bankers (CFR)- Weekly Chart

It is a regional banking stock. I have picked this stock because I think that banks and the banking sector are going to go higher. In addition, there are no other banking stock that I have suggested that have the beta of this stock. This bank is a regional bank in Texas. It is not a fast mover.

The weekly chart illustrates that it has broken out of a slim jim pattern. Indicators and oscillators are bullish. I only expect it to move up between $5.00-$7.00.

CNS, Inc. (CNXS)- Weekly Chart
I added CNXS to the portfolio table on March 22nd 2006. It is in the medical / healthcare sector. I added it because it has the best chart pattern in the healthcare sector. As you can see by looking at the weekly chart, CNXS is in a falling wedge pattern. It is a low volume stock. I think this stock is going to explode. I do not recommend options on it. All indicators and oscillators are working on a bullish trend reversal. Furthermore, CNXS is bullish in all time frames. The Monthly chart is forming a massive cup and handle -- showing that there is no resistance above $31.27. CNXS has held support above $20.00 and resistance is at $22.34.

Emulex Corp. (ELX)- Weekly Chart
Here again, I do not suggest options on this stock. ELX has a chart pattern that suggests that, if the market is going higher, then this stock is going to go the upper end of the channel. The move from B to C is always the fastest. The Aroon is still in a bearish cross, but it appears that the indicators and oscillators are bottoming.

Nordic American Tanker Shipping Ltd. - (NAT) - Weekly Chart
As you can see by looking at the weekly chart, NAT has broken out of it's counter trend pullback channel from wave 3 to 4. This stock is a front runner in the tanking sector. NAT is up 5.45% at $32.90. The indicators and oscillators are moving up along with price.


ADBE--SINGLE MOST IMPORTANT STOCK IN MY OPINION TO THE ENTIRE TECH RALLY (SOFTWARE SECTOR)
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CFR--BANK SECTOR
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CNXS--HEALTH CARE SECTOR
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ELX--CRAP SECTOR
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NAT--TANKER SECTOR
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