The VIX and What it Means Now: Stock Commentary from DonHarrold.net

DonHarrold.net (IARD #119079, http://www.donharrold.net), rates Intel Corp (Nasdaq:INTC), Apple Computer Inc (Nasdaq:AAPL), Boston Scientific Corp (NYSE:BSX), and at&t Inc (NYSE:T).

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Important Stock rating Changes:

Intel Corp (Nasdaq:INTC)

DonHarrold.Net Rating: Weak Buy

http://www.donharrold.net/ratings/US/INTC.php

Apple Computer Inc (Nasdaq:AAPL)

DonHarrold.Net Rating: Sell

http://www.stockpickreport.com/abrating.php?sym=AAPL

Boston Scientific Corp (NYSE:BSX)

DonHarrold.Net Rating: Buy

http://www.donharrold.net/ratings/US/BSX.php

ATT Inc (NYSE:T)

DonHarrold.Net Rating: Weak Sell

http://www.stockpickreport.com/abrating.php?sym=T

DonHarrold.net Commentary -- April 18, 2006

Looking at some of our overall market indicators, we are still not necessarily poised for an overall market rally. We've been saying this for months, really. But we also said that we'd keep trading stocks in sectors that we liked, and we've been doing that. The levels of the Dow and Nasdaq are not too much of a concern for us. After all, we find the stocks in sectors that we like, and many of these sectors move independently. There are 40 broad sectors in the market ... oil, oil service, precious metals, semiconductors ... etc.

This is the CBOE VOLATILITY INDEX (VIX). It measures market volatility. Notice how it just keeps going down and down. But look where it really started this. In March 2003. That was really when the bull run started in full. Notice those two big jumps in 2005. Those were both market downturns and rebounds with quite a lot of volatility. This chart has some overall market analysts worried, because there hasn't been a particular change of trend and we are sitting at the lowest level since 1995. This shows complacency in the market, and well, complacency means everyone thinks there's easy money to be made.

So, when people become too content with the market, then we should be sure to be on alert for possible downturns, while still finding opportunities. We just have to go to "yellow alert" and keep trading. We're fine with that. We can stay at yellow alert for a long time and still make money. It just means we have to keep our eyes open. One of the ways to be on yellow alert is to buy gold (buy the yellow metal). But then again, we were saying this $150/ounce ago when gold was in the low $400's. We're still saying it today. You didn't miss out on gold -- yet. There may be a pullback if you buy here, but in a year or two we think you'll be glad you did. -- Neil Batho, Analyst

About DonHarrold.net: DonHarrold.net is a stock research firm. Their daily commentary is regular and distributed worldwide. They are Registered Investment Advisors. They do not accept third-party compensation to make stock suggestions.

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Don Harrold

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