NKE.. Up while earnings estimates revised downwards. The shape of things to come?
Analysts' revising earning downwards across all sector. In most cases the prices of the stocks have already discounted the reduced earnings. Where is the bottom? In most of the low-priced stocks like CA, WWW,WTSLA, and some others we can expect they have bottomed or close to it.
Brokerages, have they bottomed?
A second group LEH, MWD, DLJ and MER seem really close. LEH is down to 44 from 84, MER is down to 55 from 109, DLJ, down 50%.. People were calling a bottom on MER,LEH at least one week ago. LEH and MER fell even lower. .
LEH, MWD and AGE report earnings next week . It will be very interesting to see what will happen to these already scalped stocks when they report. Banks will probably fall lower still...
CS, MUEI and MU? What about them?
Companies that were hit savagely have their earnings coming out in the next 2 weeks or so. CS has earnings coming out Monday. It is likely we see a wave of increases in some of these stocks like we did in NKE.
Earnings still intact for this group
Better still good companies like BOOL, SWY, COST, etc also have earnings coming out shortly.. Will good companies that have not fallen in the selloff be rewarded, like SLR, BOOL (improving chart fast approaching its 52 week high), QLGC (reaching a new high in a technically overbought condition) or LGTO.
What about the hi-flyers?
YHOO is reporting in the first week in October, will that cause another burst of energy in the internet sector? RMBS reports on the 10th what will happen? Some really fine companies are reporting first 2 weeks in October, where will they end up?
Volatility...
Volatility will be the catch word for next week, but also some good gains in the next 6 weeks. Keep yourself nice and liquid so you can partake of these offerings. Don't get stuck in too many stocks because you think they have bottomed. Carefully with stocks that seem to have broken out, only to reverse again on Monday. The oils are up one day and down the next. I noticed that irratic swings are the rule lately. I usually take large positions in few stocks (REXI,COMS,CKSG) rather than small positions in large stocks (AOL, CSCO, QCOM)..
Take profits where you can..
You don't have to scalp 1/4 point. Some daytraders are making 5-10% a day on low-priced and wide-range hi-flyers like RMBS, CMGI, REXI, AMZN.. Everyone was touting NSCP on Wednesday only to see in drop again on Thursday and Friday. All CPQ touters had to watch while is was down irrespective of market climate during the week. ASND was the cash cow on Thursday, only to drop back on Friday.
I was in on Thursday out on Friday. REXI was great on Thursday and Friday, but that doesn't mean it will continue up on Monday.
Check out the earnings plays and anticipate which sectors might be particularly active on which days.
Check out earnings for the internet groups, retail stocks, brokerages.
For example, follow earnings for YHOO. YHOO announced better than expected profit expectations. So be prepared for active internet sector around 8th of October.
Under $5 a share, yes!
No, not bulletin board stocks. For the first time, I will be including in the watch lists next week a group of these stocks. These were once trading at 10-30 a share. Could be just the right time for 20-40% move up.. |
