Value Is Still The Place To Be
When I started
writing at TradingMarkets.com, I envisioned a column where I can talk
about great growth names breaking out of bases. I figure I would mention a few
names every report to give you a good feel of what I learned through the years. I guess the timing was less-than-perfect. My columns have been about patience
and recognizing when the real turn would be made.
Unfortunately, I suspect there is going
to be a much longer wait. The short-term trader can have a field day with some
of the wild action both up and down. The intermediate trader must continue to
sit on his hands as long as the market tells him or her to. It
is still telling me to do nothing.
Last week’s action speaks for itself as many glamours were bombed. The New
Low List includes
(
CSCO |
Quote |
Chart |
News |
PowerRating),
(
GLW |
Quote |
Chart |
News |
PowerRating),
(
SUNW |
Quote |
Chart |
News |
PowerRating),
(
ADBE |
Quote |
Chart |
News |
PowerRating),
(
NOK |
Quote |
Chart |
News |
PowerRating),
(
ERICY |
Quote |
Chart |
News |
PowerRating). I would have to say that these names will have a profound effect
on the indices as they carry much weight. At the risk of making you sick, the value
areas are the place to be. I don’t expect this to change any time soon.
I also wanted to drill into your mind once again the importance of sentiment
indicators when they hit extreme levels. Many investors do not find them important. I do. Please check out my last
report on what I mean.
A couple of decent names are
(
ACS |
Quote |
Chart |
News |
PowerRating) and
(
SDS |
Quote |
Chart |
News |
PowerRating).
You may also want to look at
(
EDS |
Quote |
Chart |
News |
PowerRating)
off the
gap. Boring, but has a shot if the market stabilizes. No matter what, close
stops on everything.
P.S. I am
starting to like Goran’s
reports a lot — I thought I
was the only person in the world who knew every word of “Caddyshack.”