Sitting Tight
On days such as these, I like to sit tight and execute as few orders as possible. It is important to wait and watch how the market reacts to earnings and other catalysts before performing any action. Today, the overall view is bearish and CAT and GOOG both reported sour earnings, driving down the Dow and the NASDAQ. The only trade that I executed was selling ANET. The stock dipped down today and I wanted to limit my losses so I got rid of that position.
While most of my positions took a hit, it's quite interesting to see that the ones that reported stellar earnings are the ones showing the most strength and hanging in there (such as PENX, VMI, etc).
Here are some stocks to keep an eye on and buy if they improve: SYNP, WCRX, METH, DGSE, HSVLY, SCLD, ARUN, JVA, DIT, PRGX, ESEA, UG, IIIN .....
Blue color denotes a previously mentioned and/or bought stock
Red color denotes a stock that was mentioned over a year ago
posted by Nick M. @ 10:07 AM
3 Comments:
Do you think GOOG's poor earning could have affected other stocks in the industry?
It depends. GOOG's earnings really weren't that poor. The only problem is that the analysts expectations continue to grow higher than what the company can follow. At 28%, GOOG's earnings are at a decent pace. Being that GOOG is THE industry leader in internet search engines, this can have a negative psychological effect on investors holding other stocks in that group. It may erode their confidence in their positions and cause them to sell their positions in fear that they will flunk on earnings as well. We'll only know if there was an effect when the other companies report earnings. Time will tell.
Correction, GOOG reported 43% earnings
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