HotStockProfits.com will be issuing a new trend analysis report on Facebook (NASDAQ: FB). Follow this link to be the first to receive it: http://www.hotstockprofits.com/stockquotes/?q=FB

However, despite the optimism, there are numerous challenges that could easily cripple the relatively young growing company. If we recall, only recently Facebook (NASDAQ: FB) introduced to the public the possibility to “Like” pages, which created its first major move towards beginning capitalization of the vast global network that Facbeook has built over the years. However, despite Facebook having such extensive data about more than 800 million Facebook accounts, truly monetizing this network will create further pressure on the company, and its highly opinionated CEO to yield to the demands of public investors who will own a chunk of the company as of May 18th at a valuation that is roughly 16x Facebook’s yearly revenues.

Therefore, before putting the majority of your chips on this hot commodity, many investors are turning to alternative investments that have exposure to Facebook, yet allow significant diversification for long-term positioning.  One of these companies that owns 300,000 shares of Facebook (according to the company’s latest filings) is GSV Capital Corp (NASDAQ: GSVC). In addition GSV Capital Corp. owns stakes in companies like Twitter, Cheg, Groupon (NASDAQ: GRPN) and Zynga, Inc. (NASDAQ: ZNGA).

HotStockProfits.com has issued a new trend analysis report on GSV Capital Corp (NASDAQ: GSVC): http://www.hotstockprofits.com/stockquotes/?q=GSVC

HotStockProfits.com has issued a new trend analysis report on Zynga, Inc. (NASDAQ: ZNGA): http://www.hotstockprofits.com/stockquotes/?q=ZNGA

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All of these are very pressing questions and may seem to have more than one answer, but sometimes its much more simple then we make it out to be.

The stock market, among other things, is a great psychological mechanism that reacts to the sentiments of millions. If enough people believe it, it will happen. Now I’m not suggesting that by merely believing that you will be a millionaire, that you can sit on your couch and expect the money to rain on you. What I am saying is that, while fundamentals and other factors might be looking pretty for many companies, sometimes its beneficial to just take a huge step back and look at the bigger picture. Sometimes all you need to be a millionaire is a healthy gut.

What do we know about the stock market  that is similar to the laws of physics? Whatever goes up at some point will come down, unless you are Apple.  We have had an impressive Q1. In fact it was so impressive that the S&P 500 hasn’t demonstrated such results in over a 14 years period. Part of the argument that explains this recent robust growth is not only a healthier outlook on the US economy with companies significantly increasing margins and effectively reducing costs, but also due to the further devaluation of the US dollar. As foreign currencies continue their appreciation in value, relative to the US dollar, it has become cheaper for investors from abroad to purchase US securities. In fact, something that partially supports this claim is evidence of unusually low volume levels during this 4 month time frame indicating to us that the majority of hedge fund and other investment vehicles positioned in the US are still hoarding cash and investing in money market securities while missing out on the risk adjusted returns that equities were capable of providing.

Now, if we look at the overall technicals, the markets seem to have exhausted its attempts at hurling over the 4 year highs. With that said I do not anticipate the same sort of sell-off  to occur as it did last summer. With uncertainty looming in Europe, I believe that may be the bearer of bad news for the markets and for company profit margins. For the next 3 months I would expect a sideways market movement with no huge up or down trends on an overall basis.

So should I sell in May and go away?

The answer is no. There is enormous opportunity out there to make huge returns on investment, especially in the small cap market.  While I don’t expect the common blue-chip to provide us with double digit growth during the summer months, I do expect many small cap companies to provide my subscribers with double and even triple digit gains.

Cisco Systems, Inc. (NASDAQ:CSCO) declined 0.96% to a trading price of $20.62, arriving at a volume of 22,715.00 for the pre-market period. The company trades at an average of 37.73M. Market capitalization stood at 112.14B, following an EPS 1.28. The company has a reported P/E of 16.23, alongside a Div/Yield of 0.08/1.54.

Reinforcing its commitment to country transformation and inclusive growth, Cisco today announced an investment in Aavishkaar, a venture fund founded to promote development in rural and semi-urban India.

Citigroup Inc. (NYSE:C) traded at a volume of 417,773.00 during the pre-market period, its average volume being 43.77M, as the company itself declined 1.32% to a trading price of $35.89. Market capitalization stood at 106.59B, as its P/E arrived at 10.13. EPS for the company stood at 3.59, following a Div/Yield of 0.01/0.11.

Citigroup Inc. said it hired Rohan Weerasinghe as general counsel to succeed Michael Helfer.

Cell Therapeutics, Inc. (NASDAQ:CTIC) plunged 2.03% to a trading price of $3.37, arriving at a volume of 39,625.00 early Wednesday. On average, the company trades at a volume of 8.28M. The company arrived at a market capitalization of 1.46B, followed by an EPS of -0.21.

Bank of America Corp (NYSE:BAC) faced a decline of 2.00% early Wednesday, arriving at a price of $9.30 for the morning. Volume rose to 4.80M, its average volume being 283.02M. Market capitalization stood at 0.01/0.43, followed by an EPS of -0.03 as well.

Bank of America Corp. is hiring about 90 small-business bankers in North Carolina, South Carolina and Georgia, according to the Gaston Gazette, continuing its 2010 promise to add more staff to work with customers who operate small companies.

Telefonaktiebolaget LM Ericsson (ADR) (NASDAQ:ERIC) plunged 3.16% to a trading price of $10.04, its closing price from Tuesday being $10.37. Volume arrived at 272,000.00 before the market opened, its average volume being 4.61M. Market capitalization stood at 33.94B, alongside an EPS of 0.57. The company arrived at a P/E of 18.22 and a Div/Yield of 0.38/3.56.

Telefonaktiebolaget LM Ericssonhas closed its previously announced acquisition of 100% of BelAir Networks. The transaction closed on March 29, 2012 and financial terms remain undisclosed.

Research In Motion Limited (USA) (NASDAQ:RIMM) stood at a trading volume of 209,490.00 for Wednesday’s pre-market trading period, as the company declined 2.00% to a trading price of $12.75. On average, the company trades at a volume of 20.81M. Market capitalization stood at 6.82B, accompanied by an EPS of 2.22 and a P/E of 5.86.

Research in Motion Limited, the makers of Blackberry, is facing a lawsuit from the Dutch company NXP Semiconductors NV  over patents used in their products.

Micron Technology, Inc. (NASDAQ:MU) despite its decline of 2.63% to a price of $7.80, Micron Technology arrived at a volume of 116,750.00, its average volume being 34.03M. Market capitalization for the company arrived at 7.89B, accompanied by an EPS of -0.48. The company closed its markets Tuesday at a price of $7.99.

The company announced that it reached an agreement with Oracle America Inc. (“Oracle”) to settle a lawsuit filed by Oracle against Micron in the U.S. District Court for the Northern District of California.

SanDisk Corporation (NASDAQ:SNDK) plummeted 7.99% to a trading price of $46.10, falling far below its previous closing price of $50.05. Overall traded volume arrived at 462,751.00, its average volume being 4.56M. Market capitalization arrived at 12.13B, alongside a P/E of 12.40. EPS for the company stood at 4.04 as well.

Flash memory storage chip company SanDisk  late Tuesday warned that its first-quarter results would be weaker than expected. The news provided further evidence that the chip sector is struggling.

eBay Inc (NASDAQ:EBAY) arrived at a decline of 0.35% early Wednesday, trading at a price of $36.50, closing previously at a price of $36.63. Overall traded volume stood at 2,109.00 in the earlier hours of trading, its average volume being 10.44M. Market capitalization stood at 47.26B, accompanied by a P/E of 14.86 and an EPS of 2.47.

eBay Inc. has announced that executive David Marcus has been named President of PayPal.. PayPal is the leading online payments provider serving millions of merchants and customers around the world with a faster, safer way to pay and be paid.

Exxon Mobil Corporation (NYSE:XOM) arrived at a trading volume of 12,925.00, its average volume being 15.05M, as the company itself traded with a deficit of 1.25% at a price of $84.82 Wednesday. Market capitalization stood at 404.54B, alongside a P/E of 10.20 and an EPS of 8.42. The company has a reported Div/Yield of 0.47/2.19 as well.

Oil major ExxonMobil Corporation, along with its partners, has entered into an agreement with the U.S. state of Alaska, whereby the participating companies will jointly work on the development of resources in the region.

Intel Corporation (NASDAQ:INTC) arrived at a trading price of $27.81 earlier Wednesday, trading at a price of $27.81 after closing previously at $28.11. Volume stood at 12,164.00, its average volume reported at 34.51M as well. Market capitalization stood at 140.44B, followed by an EPS of 2.40. P/E for the company arrived at 11.73, alongside a Div/Yield of 0.21/2.99.

Intel Corp. and Qualcomm Inc.have provided U.S. lawyers with source code that will help prove Apple Inc. isn’t infringing patents of Samsung Electronics Co. (005930), an Australian lawyer for the maker of iPhones said.

Sirius XM Radio Inc (NASDAQ:SIRI) fell 0.86% to a price of $2.33, as the comapny traded at a volume of 498,560.00 during the pre-market period. The company has a reported average volume of 54.32M. Market capitalization stood at 8.73B, accompanied by a P/E of 34.49 and an EPS of 0.07 for the pre-market period.

Sirius XM Radio has announced that The wowOwow Radio Show will launch as a new weekly series, expanded from its successful limited run in 2011.

Apple Inc. (NASDAQ:AAPL) fell 0.64% to a trading price of $625.37, falling below its closing price of $629.32 from Tuesday night. Overall traded volume arrived at 52,936.00, its average volume reported at 24.23M. Market capitalization stood at 586.76B, alongside an EPS of 35.11. The company has a reported P/E of 17.92 as well.

Intel Corp. (INTC)  and Qualcomm Inc. (QCOM)  have provided U.S. lawyers with source code that will help prove Apple Inc. isn’t infringing patents of Samsung Electronics Co. (005930), an Australian lawyer for the maker of iPhones said.

General Electric Company (NYSE:GE) plunged 1.25% to a trading price of $19.71 during pre-market trading Wednesday, closing previously at $19.96. Overall traded volume stood at 22,008.00, its average volume being 45.93M. P/E stood at 16.29 and a market capitalization of 211.20B. The company has a reported Div/Yield of 0.17/3.41, along with an EPS of 1.23.

Moody’s Investors Service lowered its credit ratings on General Electric Co.as well as its financing subsidiary, noting risks associated with the conglomerate’s lending unit.Moody’s downgraded GE’s senior unsecured debt rating by one notch to Aa3, the firm’s fourth-highest rating. Moody’s lowered its rating on General Electric Capital Corp. by two levels to A1, a notch below its parent’s rating.

Alcatel-Lucent (ADR) (NYSE:ALU) faced a decline of 4.31% during pre-market trading, arriving at a price of $2.22 early Wednesday. The company rose to a trading volume of 234,734.00, its average volume being 23.79M. Market capitalization stood at 5.26B, accompanied by a P/E of 7.23 and an EPS of 0.32.

Rajeev Singh-Molares, executive vice president of communications equipment maker Alcatel-Lucent, stated that the company will deepen its involvement in China’s communications infrastructure sector as the market presents huge potential.

Microsoft Corporation (NASDAQ:MSFT) arrived at decline of 1.08% to a trading price of $31.68, closing on Tuesday at $31.94. Overall traded volume arrived at 6,878.00, its average volume reported at 42.94M. Market capitalization arrived at 268.00B, coupled with a P/E of 11.56 and an EPS of 2.76. The company has also reported a Div/Yield of 0.20/2.50.

Microsoft Corporation intends to open an office in Zambia, visiting vice-president of the world-renowned computer software manufacturing company Ali Faramawy has announced.

The devaluing dollar is causing this rise in the markets.

Printing money is good for the US equity markets. Unfortunately, this doesn’t help a US based investor. Devaluation of the USD is providing more opportunity for investors from abroad to pick up shares of companies traded on the NYSE and NASDAQ. As the USD becomes weaker, major foreign currencies are becoming stronger against the dollar, which means that investors from those countries now have a greater incentive to pick up cheap shares of companies in American markets. The more demand, given the same supply, the greater the price. Hence, the negative correlation between the USD index and the major US indexes such as the S&P 500 and the DJI.

The $VIX is signaling higher lows, suggesting a reversal in the major indexes.

Much like the USD price index and the major indexes, the Volatility Index and the major indexes move in opposite directions. Currently, the VIX is bouncing off its lows, with higher lows in the past weeks, signaling what could mean a top for the S&P 500. (I prefer to compare everything to the S&P 500 rather than the DJI because it’s a market value weighted index, rather than a price weighted index). Moreover, the S&P 500 is approaching psychological highs from 2008, levels that would be only surpassed on substantial news. At the moment, I just do not see such a catalyst happening. Right now it looks like we have a double top and new resistance level forming, however if we do experience significant news, then this could all change.

Volume has been at record low levels during this quarter.

Liquidity is an important factor when analyzing whether prices are at their fair market value. Many hedge funds and private US investment firms have opted out of investing into equity markets during 2011 and Q1 of 2012. With this in mind, it is important to note when volume levels once again kick-up. I doubt it will happen while we are sitting at mult-year highs.

Ask yourselves two questions when analyzing any swing trade:

• Do I see a short-term arbitrage opportunity based on technical indicators?
• Is there a positive MACD (flow of money) movement or negative?

Four Big No No’s…

• Don’t waste your time on researching the company’s fundamentals – it doesn’t matter.
• It doesn’t matter what industry the company is positioned in.
• Emotions – Don’t get in a serious relationship with the company.
• Do not put more than 10% of your portfolio into this swing trade!

When you are analyzing technical indicators, position your trade in such a way that allows you to capture gains in one to four days. The longest time frame that I would suggest for a swing trade is up to 8-10 days…but only if you have a good reason for this!

If you want to spend no more than 20 minutes each day, and experience the success from swing trading of stocks and ETFs, sign up to my HSP Gold Premium program.

Feel free to contact me at Edmund@hotstockprofits.com.

So what is the lesson that I want you to learn?

1. Always have a set plan when making a trade.
2. Do not allow emotions to dictate your trades.
3. Analyze your opportunity cost.
4. Be disciplined.

Ultimate lesson:

You cannot take big losses and expect to be a profitable swing trader. Cut your losses small and let your winners run.

Feel free to contact me at edmund@hotstockprofits.com.

Out of all the penny stocks trading out there, approximately 3% of these companies are given a “bad rep” by the 97% of companies. Roughly 3% of companies traded on the OTCBB and Pinksheets are legitimate entities that actual turn a profit every quarter (or year), depending on their financial schedules. But can it really be worth it to search for that mere 3% of companies that could provide a positive return on investment? The answer is yes…and here is why.

Penny stocks are classified as being one of the riskiest investment choices that anyone could make. These stocks are capable of experiencing massive volatility, sometimes providing triple digit returns in a matter of minutes – something not every Fortune 500 company could do.  This is why on occasion the reward from these penny investments could be worth the days necessary to put in for research.

However, even a penny stock that has all the necessary fundamental criteria to constitute a long-term investment, needs to be analyzed first and foremost from a day traders and swing traders perspective. Personally, before I make any kind of announcement of a penny stock company, I need to be convinced that that underlying trend would provide my subscribers with an opportunity to secure significant trading gains within hours or days (at most). Generally I do not invest long-term in penny stocks, however there are always exceptions to every rule.

Feel free to contact me at edmund@hotstockprofits.com.