Editor's Note

You never know which personality the market will display each week. What do you do when sentiment suddenly changes? Over the last two weeks we have seen a dramatic change in sentiment. Earnings growth declined from 25% to 21% but the market reaction looked like earnings have gone negative. Sometimes facts do not matter. The earnings and economy are doing just fine, interest rates are still very low but the perception of those three items has completely reversed.

The market never needs an excuse to take profits but one will always be blamed by market commentators on stock TV. Fortunately, markets can reverse higher just as quickly as they crashed because calmer heads will see the facts and the hundreds of bargains now being offered.

I am not saying that is going to happen tomorrow. The Japanese market is down over 3% tonight. It may not happen this week but eventually bargain hunters will appear. Personally, i would be buying stocks like Boeing, Costco, Microsoft, Salesforce.com, Apple, United Technology, etc. These are stocks where the earnings will overcome the short term fear. All have outstanding outlooks and guidance. They will lead when the market reverses higher.

I bought the dip last week and I am being punished for it this week. Even though the S&P futures are up +8 there is no reason to try and catch another falling knife. There will be significant weekend event risk with multiple global markets melting down. Be patient and we will look at adding some positions over the weekend if the conditions warrant.


New positions are only added on Wednesday and Saturday except in special circumstances.


No New Bullish Plays


No New Bearish Plays