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VIDEOThe Long and Short of Aggressive Trading
The one big overhang to this market currently is the relentless selling on many names that are frankly some of the strongest growers and the best values.
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This market is a scalper's dream and, while I will day and swing trade, my style and preference is to play my macro and stock specific themes for much longer time frames.
As for today, the risk taker in me wanted to jump all over MBIA (MBI), especially with the Barron's piece acting as downside cover. Now looking at the stock dancing higher by 40% plus I feel like throwing chairs around like Bobby Knight.
However, I ramped finance exposure by adding Lazard (LAZ) and Citigroup (C) and am not sure I really need to sell these before day's end, but I will also not ride them into losing trades either.
The one big overhang to this market currently is the relentless selling on many names that are frankly some of the strongest growers, the best values and operate in areas the most removed from the whole toxic fixed income waste bin. They have beta, and that beta is being sold with no regard to valuation or longer term investment opportunity. Tremendous growth values like Qualcomm (QCOM), SiRF Technology Holdings (SIRF), ValueClick (VCLK), Citrix Systems (CTXS), Network Appliance (NTAP) and Ciena (CIEN) just seem to find no floor.
At some point this opportunity will be realized with spectacular upside but in the meantime it's hard to find tech names that will rise for more than half a day.
On the tech front the chiefs will probably have to lead first. I had written a fairly bearish article on Hewlett-Packard (HPQ) when the stock was close to $50. Now $8 lower HPQ could be worth watching for long side entry points. Also, Microsoft (MSFT) is reporting this week and I still think the Halo halo effect is just starting to work through the Mr. Softie food chain. I also like virtualization news related to CTXS announced today as well.
MSFT is one of the few stocks I would feel comfortable buying or adding to in this environment, ahead of its report, and I may do just that.
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