People still have to eat in a downturn, says Wayne Mulligan in Penny Sleuth. And as household budgets get tighter, shoppers are least likely to get rid of staple foods.

This makes an investment in eggs a great way to play the downturn. That’s because the humble egg is one of the great American food staples.

One of the best ways to invest in Americans’ reliance on eggs is through Cal-Maine Foods, Inc. (CALM). The company produces almost 15% of the eggs eaten in the US. Its market share is growing. And it has a rock-solid set of financials…

Are we seeing a bottom to the bear market?

US stocks are heading for weekly gains. This despite big quarterly losses results from financials Citigroup (C) and Merrill Lynch (MER) and missed estimates from tech giants Google (GOOG) and Microsoft (MSFT).

Think of it this way, says Penny Sleuth editor Wayne Mulligan: “If you want to know whether or not we’ve reached a bottom, then all you need to do is think about the consumer.”

We’re standing on the tracks and the train is coming, says Wayne Mulligan. But that’s no reason for investors to not play the market. Wayne says going long on discount retailers is the best way to profit from low consumer confidence. And with fuel prices on an unsustainable uptrend, investors should look to the alternative energy market. Meanwhile, the auto industry is facing ruin. A clear opportunity for shorting, says Wayne.

Someone just e-mailed me…How exactly do you go about finding stocks to buy? And after I read it, I really began to think about how my investing process works. How do I go about identifying, researching and ultimately buying a stock?

Editor’s Note: Wayne Mulligan, founder and CEO of TickerHound.com is traveling in China. Writing for Penny Sleuth, he says that the housing market boom has reached its limits for now. More losses are likely in the near future, making shorting a good option for investors…

Apple Enters Chinese Markets. Wayne Mulligan is back to give us an overview of China’s exponential growing market and what that means for wireless investors.