The bulls took over Wednesday, brushing aside the CPI data that ensured a rate hike, sending all indexes up in the final hour. This is clearly the best day in weeks for the market. Many investors feel the bottom has hit, so I’m taking off the bear suit and will wait for the days to play out to confirm this sentiment. If the momentum shifts, then prepare to go long.
So, now that the dust is beginning to settle from the Fed’s inflation bomb, its time to see if there’s any life out there. I’ve came up with a quick list of stocks that are potential long candidates. I wouldn’t buy aggressively yet, but if the week continues its gentle pace, now would be a good time to make a first position (average up or down later). There are many stocks that have been “discounted” because of the inflation worries, so a good place to start is your holdings before the correction. If it’s still worth holding or rebuying, then do so! Just because a stock pick never worked in the past month or so, doesn’t mean it’s bad. Remember, whatever Berananke says doesn’t change a company’s fundamentals!
Bargains:
Relatively low p/e- MA, YHOO, GS, INTC
Not a True Bargain, But Well Off Highs:
high volume stocks YTD- TIE, ZOLT, BOOM, WIRE, PEIX, BIDU, ASEI, ENCY
Momentum Watch :
VSE (ethanol/IPO), XING, MED, ZOLL
Good Companies, Bad Stock Performance:
companies I like, but just aren’t performing well on the ticker; waiting for a reversal- GOOG, ET, STP, ERS, HW
