Cart (0)
business newsFinancials Are the Key
It all comes down to the financials, which remain dead money.
PRINT
 |
|
Good morning, Minyans,
Yesterday the bears had another chance to press the market and spark the big nasty close. They couldn’t do it and important levels held. All eyes remain on the 1490 level in the S&P and the 2770 area in the NASDAQ. So far both have held their ground and I am starting to wonder if the bears have enough fire power to finish what they started.
It all comes down to the financials, which remain dead money. It is quite clear that we aren’t going to be able to gain much traction in other areas as long as stocks like Citigroup (C), Merrill Lynch (MER), Bear Sterns (BSC) and Bank of America (BAC) continue to plummet. It doesn’t matter how cheap Google (GOOG) is on a valuation basis or how much growth Baidu.com (BIDU) is showing. If the US financial system remains unstable I believe it will only be a matter of time until the rest of the market begins to follow suit. On the other hand, if these depressed stocks can find at least a temporary floor, it may provide the confidence that is needed for buyers to step in and bid up other, more healthy sectors, and we could see a decent run into year end. It is still too early to tell what will happen, but I am preparing for both.
Today the big news is in the solar arena after First Solar (FSLR) announced a billion dollar contract last night. I had recently questioned First Solar’s valuation but this contract definitely confirms why these stocks remain strong and continue to be in play. It is tough to chase those that have already run, but I am watching a few others, such as MEMC Electronic (WFR) and Trina Solar (TSL), that aren’t as extended for entry points in order to ride the hot solar wave.
Both positions I discussed yesterday, Advanced Analogic (AATI) and Bruker Biosciences (BRKR) are holding steady and continue to look attractive. I am waiting for some strength to confirm the moves before looking to add, but am watching closely.
Remain patient out there today, and despite the early bounce, keep capital preservation as your number one goal.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
