I like to view Business Week as a contrary indicator, which I think is your point.
What I've noticied, is that even as the indexes trend lower, certain stocks seem to show strength. ie AA, DOW and HON. These aren't stocks that I would normally play in years past; yet are stocks I've traded in recent past. HON in particular, suffers from my 'recent merger' antipathy. I almost think I have a love/hate relationship with the company; loving it because of it's exposure to distributed energy generation yet hating it because of it's recent merger.
I think the market is looking for a intermediate term bottom, just not quite sure one has been found. I continue to maintain some long exposure, as the up bounces have been quite strong when viewed against the daily grind lower. Yet I haven't been shy about taking profits on what I percieve to be bear rallies.
I'd like to exit the year with solid profits booked, and good holdings in solid companies going forward.
HELX is one tech company I've always liked, and I notice on deeper examination of the semi-equip sector, that it is approaching the area where I like to enter. So despite the SOX being twice where I like to enter, maybe there are some values to be had.
Just be aware, that extremes to the downside are not out of the question. |
