<There is a lot of money on the sidelines and transfers from money market funds to stock funds are up.>
Exactly, the environment has been created where that is "the thing to do", take your money out of the MM and put it to work in the stock market. As Sarmad said, "we need some fuel" and what better place to get it than out of all that money laying around on the sidelines.
Right on que this morning, a lot more "silver bullets" are being fired - but not to worry - there are a lot more where they came from!:) Examples from Briefing.com this morning.
<07:14 ET Oracle upgraded at Wachovia (ORCL) 13.39: Wachovia upgrades to Outperform from Mkt Perform and raises their valuation range to $13-$16 from $11-$14; firm says a deep enterprise software stack and entrenched account relationships uniquely leverage ORCL to benefit form broad recovery in enterprise software spending, which could likely pick up in 2004 after a 3-year slump; firm also notes that the stock's valuation is at a discount to its peer group (28x CY04 est vs peers at 33x).>
<07:46 ET CSFB upgrades Enterprise Software to Overweight : CSFB upgrades the Enterprise Software group to Overweight from Market Weight amid firm's view that a return in discretionary spending will result in the software sector outperforming the market over the next twelve months given the group's inherent operating leverage. Despite the potential for a rocky Q3, firm is "moving unequivocally" into the bull camp.>
<09:06 ET Hearing that CSCO out with positive comments on Aug trends at tech conference :>
<09:09 ET CSCO: August orders better than expected says CEO -- Dow Jones :>
Now here is a particularly large "silver bullet" - you really can't get much better "firepower" than that below.:)
<09:45 ET Needham recommends heavy over weighting in the Semi Equipment sector : Firm believes that stocks are still undervalued based on belief that we are heading into an upturn. In a downturn investors collectively use value methods to price equipment stocks, however, in an upturn investors switch to a price earnings method, which should allow significant upside to current price levels that in Needham's view are still reflecting downturn type valuations. Even if the cycle-to-cycle growth is negative 20%, which firm believes could be a worst-case scenario, the stocks are still undervalued. With cycle-to-cycle growth, semiconductor equipment stocks could reasonably be expected to yield returns of 50%to 100% or more over the next 18 to 24 months.>
And when you really have a good silver bullet, you use it over and over again to make sure it is doing its job.:)
10:56 ET CSCO -- Hearing that UBS upgrades to Buy from Neutral with $25 tgt 20.38 +0.79:>
And finally, a nice summary of all the silver bullets:
<12:00 ET Dow +29, Nasdaq +14, S&P +3.66: [BRIEFING.COM] Buyers have picked up where they left off yesterday and bid stocks higher in a sign that the market's recent upside momentum remains very much alive... The S&P 500 confirmed the rally's strength by taking out its June/July recovery high, and moving to a new 52-week high yesterday... Its improved technical outlook lifted the Dow and Nasdaq to new 52-week highs as well, and has set the stage for today's uptick... Once again, the technology sector has assumed the helm of the advance, boosted by a number of favorable comments from analysts and companies alike... Cisco (CSCO 20.53 +0.94) said at SG Cowen's technology conference that August orders were better than expected, while Advanced Micro Devices (AMD 11.22 +0.02) announced at Smith Barney's tech conference that July/August sales were encouraging... CSFB also helped the cause of tech stocks by upgrading the Enterprise Software group to Overweight from Market Weight following Goldman Sachs' upgrade yesterday... Elsewhere, the blue chip issues have also participated in the rally, but not to the same extent of their tech counterparts... Financial, cyclicals, defense, utility, and health care have edged only slightly higher, and their slight gains, combined with the losses in retail and drug, have precipitated the Dow and S&P 500's underperformance of the Nasdaq... The homebuilding group, however, has been lifted by the July Construction Spending report... Although the reading (at +0.2%) checked in below the consensus estimate of +0.5%, investors have taken comfort that the June number was revised upwards to +0.7% from +0.3% and signaled that the housing sector remains strong despite the rise in mortgage rates... NYSE Adv/Dec 1928/1164... Nasdaq Adv/Dec 1731/1273.>
So what's not to like?:)
Don |
