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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: Jenna who wrote (117315)11/26/2000 8:01:52 PM
From: Jenna  Read Replies (2) of 120523
 
<font color=red>Stay Tuned to this thread for INTRADAY UPDATES on this week's Earnings Plays They are being placed on the watch lists because there are not that many, but they may be very important for the sectors, the market in general. NOTE: They are NUMBERED (coded) for calling on the thread..

Companies with earnings out this week will more than likely slip despite earnings if they are already trading at high multiples and/or key market indicators continue to be negative. If there is any signs of "Anticipatory Downswing" already in the day/s prior to the report, we have a reinforced indication of possible strong downturns (a la CFLO) after the earnings come out.

For particularly beaten down stocks, be on the lookout in the next few days for any upgrades, bullish comments or news coming out of the company. All is not negative and we may have some interesting bounces this week not only in earnings plays themselves, but in the correlating stocks in their respective sectors.

As you all know we are approaching the pre-earnings report period by Mid-December and that does not leave us much room for upside in the next few weeks. I would be circumspect in all trades and hold only those that have consistent signs of volume,price and insitutional interest. One-day-wonders already in deep downtrends in depressed sectors will more than likely continue to languish and provide good set ups on the short side.

If there is an 'all clear' sign, I would consider upping equity investments a bit now and more so AFTER the January earnings come out. I would still be wary of any rallies being sold into, but still maintain a foothold on tech belwhethers as well as companies that had good earnings reports recently (a la ADI) but have sold off due to general market selloff.

It is no longer a matter of 'timing the market' but of hope and expectations dashed (see my previous post taken from TheStreet.com) and repeated cycles of selling the rallies, especially when stocks more up too much, too quickly and for the most part can be unjustified.
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