February 25, 2009 (FinancialWire) (By Dr. Joe Duarte) -- The S&P 500 (SPX) held above 740 on 2-23, and the market used that key support level to rally on the next day. So far so good, if you were looking for the market to bottom, which we were due to its severely oversold state, and the lack of a new low on the big selloff on 2-23. That being said, you have to wonder if the bulls were able to accomplish anything beyond getting the bears to cover their shorts. There is still a feeling that many other shoes are left to drop. And despite mega levels of pessimism, that washout feeling is just not in the air. This, of course, leads to more uncertainty, since one can never be sure if any bottom is the absolute bottom in any market. That leaves traders with little choice but to dip their toes in the water every time the market seems to make a bottom of some sort. And that means that at some point, some of those who take chances will be rewarded. So what can you do? If you decide to trade, keep your positions small. Decide on your loss limits before you buy. And be prepared to be wrong. After you do all that, there is nothing to do but see what happens. More important, as time passes, continue to put together your wish list of stocks that you'd like to own. Review the list on a regular basis and see what the charts of those companies you chose look like. If some of them look attractive, maybe a small nibble is worthwhile. Beyond that, take no unnecessary risks and remain conservative. This is a very nasty bear market until proven otherwise. Here's a perfect example. Johnson & Johnson's (NYSE: JNJ) was thought to be a bulletproof company. Yet, its break to a new three year low, on 2-23, is a signal that things may actually get worse in the market. Health care stocks, especially well diversified behemoths like JNJ are traditionally viewed as being recession proof. And JNJ, because of its well diversified business base, which includes the gamut of products from over the counter remedies to sophisticated surgical equipment, has usually been a leading member of the unsinkable group of companies. So what's happened? Well, for one thing the global economy is in the tank, which means that sales are going to get hit, likely at all levels in the company. But, more important, the Obama administration is about to shift its emphasis, away from mortgages, onto health care, where the focus will be on cutting costs, for drugs, doctor and hospital reimbursement for Medicare and Medicaid, and for all kinds of services and equipment. That means that the entire product line is in trouble. And that means that Wall Street has finally hit the sell button on JNJ, and likely the rest of the sector. Yet, this is not something that should surprise anyone. Certainly, we've seen lots of signs in the last few weeks that something was on the way, as more drug companies are cutting sales and detailing jobs, as well as cutting back on other services, such as medication support programs that were once plentiful. The question for investors, in this case, is not so much when will this be over, but how bad will it get? And when it's finally over, what will be left of America's health care industry. If JNJ's recent buckling is any sign of what's ahead, it isn't likely to be very pretty at all.

The Investrend Earnings Calendar features Atlas Energy Resources (NYSE: ATN), expected at $0.53; Berry Petroleum (NYSE: BRY), expected at $0.24; CA Water Service (NYSE: CWT), expected at $0.39; Clean Harbors (NYSE: CLH), expected at $0.68.

The Investrend Economics Calendar lists Existing Home Sales for January (10 a.m.), EIA Petroleum Status Report (10:30 a.m.), Treasury auctions 5-year notes (1 p.m.).

The Investrend Events Calendar showcases ADS, CBZ, COCO, VCI at Robert W. Baird & Co Business Solutions Conference; ALL, TRV, AFL at Merrill Lynch Insurance Investor Conference; AMAT, TTXP at Cleantech Venture Network LLC San Francisco Forum; ARP at Credit Suisse Group Global Services Conference; BMTI at American Academy of Orthopedic Surgeons Conference; CAT, WCC at UBS Industrials Conference; CAVM, ATHR, HLIT at WJB Capital Group Silicon Valley Bus Tour; CSCO, CMl, EQIX, CTXS at Pacific Crest Securities Emerging Technology Summit; CSCO, SAP, GOOG, YHOO at Goldman Sachs Technology and Internet Conference; CSIQ at CanaccordAdams Sustainability Conference; INTC, JDSU, TER, FORM at Goldman Sachs Symposium; MVL, MDCA, LGF, NFLX at Jefferies & Co. Internet & Media Conference; N at Software & Information Industry Association SAAS/GOV Conference; TALV, NAK, GBG, TGB at BMO Capital Markets Global Metals & Mining Conference; VOLC Analyst Meeting.

The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session's trading showed 46 advancers versus four decliners. Advancers were led by Financial Bull (NYSE: FAS) up 27.44%, Huntington Bancshares Incorpora (NASDAQ: HBAN) up 21.55%, Citigroup Inc (NYSE: C) up 21.50%, Ultra Financials Pro (NYSE: UYG) up 21.39%, Bk Of America Cp (NYSE: BAC) up 20.97%, Hartford Fin Svc (NYSE: HIG) up 19.91%, Wells Fargo & Co New (NYSE: WFC) up 18.31%, Morgan Stanley (NYSE: MS) up 17.27%, Fifth Third Bancorp (NASDAQ: FITB) up 16.94%, Ford Motor Co (NYSE: F) up 15.61%, Marvell Technology Group, Ltd. (NASDAQ: MRVL) up 13.16%, Amer Express Inc (NYSE: AXP) up 12.10%, Us Bancorp (NYSE: USB) up 10.68%, Home Depot Inc (NYSE: HD) up 10.48%, The Charles Schwab Corporation (NASDAQ: SCHW) up 9.83%, Comcast Corporation (NASDAQ: CMCSA) up 9.38%, Sprint Nxtel Cp (NYSE: S) up 8.16%, Research In Motion Limited (NASDAQ: RIMM) up 8.02%, Sun Microsystems, Inc. (NASDAQ: JAVA) up 7.86%, Companhia Vale Ads (NYSE: RIO) up 7.75%, Jp Morgan Chase Co (NYSE: JPM) up 7.74%, Ultra S&P500 Proshrs (NYSE: SSO) up 7.57%, Activision Blizzard, Inc (NASDAQ: ATVI) up 7.10%, Yahoo! Inc. (NASDAQ: YHOO) up 6.52%, Proshares Ultra Qqq (NYSE: QLD) up 6.22%. Decliners followed Pt Ultrshrt Sp500 Ps (NYSE: SDS) down 7.55%.

Vote in the Investrend Poll Question of the Day at Investrend Information (http://www.investrendinformation.com).

Investrend Website of the Day: http://www.meadowlarklemon.org

Quote of the Day: "The measure of success is not whether you have a tough problem to deal with, but whether it's the same problem you had last year." John Foster Dulles

Today is: Ash Wednesday, Improve Yourself Day.

Happy Birthday: Pierre-Auguste Renoir, John Foster Dulles, Zeppo Marx, Jim Backus, Bobby Riggs, Ralph Stanley, Larry Gelbart, Tommy Newsom, Faron Young, Sally Jessy Raphaлl, Bob Schieffer, George Harrison, Ric Flair, Carrot Top, Tea Leoni, Sean Astin.

Today in History: George Washington held the first Cabinet meeting as President of the United States in 1793. Samuel Colt received an American patent for the Colt revolver in 1836. The first practical electric motor in the US was patented in 1837 by Thomas Davenport. Hiram Rhodes Revels, a Republican from Mississippi, was sworn into the United States Senate in 1870, becoming the first African American ever to sit in the U.S. Congress. J.P. Morgan incorporated the United States Steel Corporation in 1901. Oregon placed a one-cent per U.S. gallon tax on gasoline in 1919, becoming the first U.S. state to levy a gasoline tax. Glacier Bay National Park and Preserve was established in Alaska in 1925. Charles Jenkins Laboratories of Washington, DC became in 1928 the first holder of a television license from the Federal Radio Commission.

[FirstAlert" was created by Gayle Essary, founder of Investrend Communications, Inc., parent of Investrend Information (http://www.investrendinformation.com). The opinions expressed in FirstAlert" do not necessarily reflect the opinions of Investrend.]

FinancialWire" ( http://www.financialwire.net ), an independent, proprietary news service of Investrend Communications, Inc., receives no compensation for its news or opinions. Further disclosure is at http://www.investrend.com/articles/secondlevel.asp?level=472 . To contact FinancialWire" write to inquiries@financialwire.net .

Free annual reports for companies mentioned in the news are accessible via http://investrend.ar.wilink.com/?level=279 .

Copyright(C)2009 by financialwire.net, Inc. All rights reserved.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.