Conclusions: Daytrades, Swing Trades and Position Trades..
After looking through e-mail since the close, the question that pops up the most is "What is best to trade now with all this pre-earnings warnings, unstable markets, etc.
1) The focus will still be on earnings.. Plays that have reported already and paused for a while, plays that are up on 'anticipation' BEFORE earnings. There are still hundreds of companies that are tradeable and give great profits. There is no getting around it. There is no ONE sector, no one leading stock that you can buy and depend on it giving you a good week to 1 month hold. Brokerages, Technology, Financial sectors all failed. Even trusty stocks like CPQ and DELL could falter on a hint of a bad earnings report. CPQ already has had problems. Having a data base with the top 100+ stocks that have ALREADY reported good earnings will protect you from surprises.
2) Local companies with limited exposure to foreign influences. (WMT, WAG, SWY, COST, AVEI, HBOC, SPLS, DH, PAYX, etc.)
3) Already beaten down stocks have limited downside risk... and are more profitable than large caps with limited percentage gains.
4) and finally... there is no proven formula to find these stocks.. No mathematical computation or trading system that will zero in on them. We will find them through fundamental/technical analysis and scanning the entire database for them.
In the next few weeks we will be reporting and analyzing those stocks.
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