The following may be purchased on weakness: Pioneer Natural Resources, Medaphis, Criticare Systems, York International and Novell. But, Home Depot for bear rallies, along with some of the money-center banks. That is what history suggests I do.
It is not important to Home Depot's stock whether I ,or anybody else claims to own it. The stock's begun the early stages of a move indicative of a bear-cyle. It is no accident that it is occurring at this stage of the economic cycle: It is no accident that 30yr. bonds peaked 7-months ago, and interest-rates are creeping higher. It is no accident that we are involved in a foreign adventure, or two, that will not have clear resolutions. It is no accident that commodity prices bottomed a few months ago, and are rising. It is no accident that the unemployment- rate is at a historical low, and etc. All of these must happen to confirm a bear-trend for Home Depot, as they have for these types in the past. |
