How Long Will This Market Rally Last?
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Better than expected performance from different companies have kept the rally going this week as the Dow industrials reach 9,000 for the first time since the start of the year. Apple, Yahoo, Ford and AT&T all reported higher numbers than expected. That, and a rise in existing home sales led investors to take money out of safer options and put it into stocks. Oil also has seen a sudden rise as it reached $67 a barrel on Thursday, the highest in two weeks. There were 554,000 initial jobless claims filed in the week ended July 18, up 30,000 from an upwardly-revised 524,000 the previous week, the Labor Department said in a weekly report released Thursday.
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This week we are looking at one of those recession proof companies with a nice dividend that we like so much, but the main business of this company is not the reason we recommend it. This is also a green company that has a growing alternative energy arm which should start to make serious money. No one is paying attention to how federal "green" regulations will positively affect this company’s bottom line. Our Bearish pick is on a mini rally as it rides the markets recent surge, but its outlook isn't positive as it recently has analysts downgrading it and will most likely see a pull back even if Wall Street continues to climb.
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 Waste Management (WMI) - Waste Management is already an industry leader in a recession proof business (trash collection), the company serves about 21 million residential, industrial, commercial, and municipal customers in the United States and Canada. The company looks to keep growing and become more efficient as its uses its size to leverage pricing, but the company also has other revenue streams that look promising. The companies recycling business which should benefit from the rise in commodities will add to its growth in 2009 and its landfills are now producing methane gas, enough to be considered a serious revenue generator moving forward.
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 Harley Davidson (HOG) - 91% drop in profits reported a few days ago seems to have been forgotten because Harley Davidson is on a surge. Their main product is based on discretionary income, something that is going into mattresses these days and their once "never enough" inventory is now over following. Lets not forget that their financial arm will be hurting the company’s overall numbers, probably into 2010. This is one of stocks we see going into reverse on any market pullback.
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