Overheard On The Street
Here’s what they’re saying at mid-day:
Brian Belski, Fundamental Strategist,
U.S. Bancorp/Piper Jaffray: “So where is the bottom and where does the
selling end? While we have been early in our optimism, it has been our
experience that you never know where an ultimate bottom is, until after the
market turns up from one. Yes, we still believe the market is in a reactive
mode, a trend that will bring only more volatility as the fourth quarter
unfolds. But, we believe the third-quarter earnings season that begins in
earnest this week will actually surprise some people as to its prowess.
“Why? It is our contention that the fundamental warnings of the past
three to six months have potentially made analysts and companies alike more
conservative in their expectations going forward, especially within companies
that have recently disappointed the Street.”
Paul Rabbitt, President,
RabittAnalytics.com: “Goodbye September and good riddance! On September 1,
we suggested traders should take profits but that didn’t make the month feel any
better. The Nasdaq corrected 12.7% in September under the pressure of 40%
declines in Intel and Apple on profit warnings. Now the markets are a strong buy
for traders and investors. We suggested last week would be a watershed week and
that investors should start nibbling. That is our story, and we’re sticking with
it.”
Paul Desmond, President, Lowreys
Research: “Our short-term indicators are at deeply oversold levels, and a
new rally attempt could develop. It will be very important to closely monitor
the quality of that rally. Current evidence suggests that the gains would again
be narrowly focused in Mid-Caps, particularly within the financials, health
care, oils, and utilities. But, the critical question is, how narrow can a
market-advance become before it breaks?”