Al, I will go long for a trade on stocks in a strong uptrend who have formally announced that they do not forsee earnings problems. For instance, stocks such as CSCO and DELL should move with the market and will collapse only if they screw up on execution.
On investing I try to wait for proper entry based on technicals and the overall market context. The semis, semi equipmakers, and disk drive makers are suitably priced for investing, even in a shaky market. The yr2k, internet, and biotech sectors are getting killed now so I'd wait until the dust settles. However, the internet sector may be reversing, KTEL up strong today. Let's see how the market reacts to AMZN earnings tomorrow and its announced 2-1 split.
I'd expect very choppy trading for couple of months. The market is forming an intermediate top, liquidity has yet to dry up. DOW 8500 plus or minus 700 points is the context for sector rotation, although I keep hearing DOW 10,000 on CNBC ... until I hit the mute botton. |
