The Bull Sector - bullsector.com
Bear Market!
Well, it's here, we didn't want it, or even want to accept it, but we have officially entered a Bear market. This has been a wide spread sell-off. The Nasdaq Composite Index that set a new record high of 5048 on March 10th has now dropped 35% in a little over a month to close at 3,321.29 on Friday April 14th, 2000. Even the Dow itself is down 9.3% after recently showing strength. That strength has been sapped by margin calls and a rotation into cash. We believe the Nasdaq will find support soon but it is not likely to happen until the index falls well below the 3000 level.
Will see a long-term downturn or we will see a recovery soon? The overall bearish sentiment and the volume of the selling in the overall market on Friday encourage us but we are discouraged when we look at the traditional valuations stocks. We believe that is it highly likely that we will see another few hundred points lost on both the Dow and Nasdaq as early as Monday morning. The biggest reason we expect this to happen is continued margin calls. The second reason is fear of a very real slowdown in the economy brought on by higher interest rates as the Fed reacts to the higher than expected CPI numbers released on Friday. The final reason we are concerned is quite simply that a Bear market downturn like this simply eats up available investment dollars. Too many investors are no doubt over leveraged to withstand the current downswing without having to sell off positions in numerous stocks. This week we watched stocks sell off in every sector leaving only the gold sector higher on Friday.
cbs.marketwatch.com
Certainly cash is king. Long-term bargains will be available for those in a position to buy.
The question is what do we buy?
That is an individual decision but buying quality will be much more important now than it was two months ago. Next week technology leaders like Intel, IBM and Microsoft are scheduled to report quarterly results. Future earnings expectations for these companies will weigh just as
heavily on the market as the companies actual earnings. We believe that when money begins to flow back into the market it will happen much more selectively. Stocks that have actual earnings and a habit of exceeding analyst's expectations will prosper but those that have risen due to market share or Dot Com mania will be much more subject to falling back after any rallies. As for those companies with actual earnings, well we believe it will be even more important than ever for companies to live up to expectations.
There are a number of companies that reported earnings this week that actually exceeded analysts expectations. In this market most of these stocks sold off too but they will be more likely to recover than those companies that reported disappointing earnings. This market correction may actually offer a tremendous opportunity for investors to pick up bargains on actual market leaders in numerous technology sectors. We believe that a recovery rally could take place soon. It could begin late Monday or perhaps Tuesday when the market selling reaches feverish heights. If that rally comes we will be looking at reassessing our own portfolios to buy market leaders in various sectors.
Relative to the recent past bargains can be found everywhere so why not buy into market leaders? It's time to look at those stocks that have consistently beaten Wall Street earnings estimates. Take some time and look through the Yahoo Detailed Quotes charts at the Bull Sector. Look for those charts and sectors that have withstood this sell off relatively well. These stocks are likely to emerge as the real winners on the next leg up.
Monday morning may very well be incredibly ugly we hope all the readers of this message will not only survive the additional selling but also soon find themselves in an excellent position to prosper. Here are some stocks we like in the technology area. ATYT in the 3D Graphics Sector
bullsector.com
The PC Hardware sector still looks pretty solid. Stocks like IBM, SUNW and HWP look like great long-term investments. GTW exceeded earnings estimates this week. We also have great faith that DELL will reassert market leadership the PC Hardware Sector even as it successfully branches out into new vertical markets.
bullsector.com
Both CHKP and RSAS reported excellent earnings this week in the Internet Security Sector.
bullsector.com
Database leader ORCL has held up well and can be found on several Bull Sector Lists. Along with ARBA we like ORCL as a leader in the B2B Sector.
bullsector.com
CSCO has held up well for good reason as this leader in the Networking Sector rarely disappoints investors.
bullsector.com
ADCT is a company with a tremendous customer list in the Telecom Equipment Sector. The chart still looks good.
bullsector.com
In the Semiconductors area there are several stocks that look quite good. Although the sector was hit hard on Friday this is an industry that continues to show tremendous growth. AMD for instance reported excellent earnings this week. AMAT, TI and many other stocks look fundamentally solid in the Semiconductor Sector.
bullsector.com
How about Wireless plays? There will be some real winners in this sector in the future. Right now we would like to have the cash to buy stocks like GTE, LU, NT, and QCOM to take part in the long-term success of the Wireless Sector.
bullsector.com
We continue to add new micro sectors at the Bull Sector. Old economy sectors are represented as well as new technology sectors like the Telematics Sector. Strategy Analytics expects that the world market for in-car telematics terminals will grow from $7.7 Billion by end 2000, to $24.3 Billion USD by 2006, with North America taking $9.4 Billion of that market. The FCC has said that cell phones themselves must soon have E911 skills. JCI is one stock that might do tremendously well with the growth expected in the Telemactics Sector.
bullsector.com
Disclaimer: Investing in stock market can be extremely risky. The authors of this site are not connected with the financial industry and nothing here should be construed as giving financial advice. Prospective investors should contact a suitably qualified financial advisor. No warranty or guarantee is given regarding the accuracy, reliability, veracity, or completeness of the information provided here or by following links from this page, and under no circumstances will the author or service provider be liable for any loss including but not limited to direct, indirect, incidental, special or consequential damages caused by using the information, or as a result of the risks inherent in the stock market.
______________________________________________________________________
To unsubscribe, write to bullsectoreditor-unsubscribe@listbot.com
Start Your Own FREE Email List at listbot.com |
