Looks like we are going to get a flattish day as the market await's Intel's release. Last time Intel's postive report sparked a big rally in July. This time with market in moderate overbought territory a postive report may not provide as big a kick unless it's super positive. But I ain't going to be making bets here either way....not enough edge either way and too much risk getting caught on the wrong side of a big gap to start the day tommorow. This is fine by me...I'm just plugging away scanning charts of individual stocks and doing good old fashioned DD. Buying individual stocks that don't have a very strong correlation to the market can be a much more peacefull and less stressfull way of making money because you don't have to worry about the day to day ticks of the market.
But let's be clear here....your chances for success when buying individual stocks is much, much, higher if you do so during a favorable economic climate (or in this case an improving one) than an unfavorable AND deteriorating economic climate. Good things happen in a good economy, bad things happen in a bad economy and so your so called stock picking "skills" aren't as good as you think.
I'm trying to identify interesting sectors and sub sectors that are underneath the radar. If you guys have any good ideas...please enlighten me.
Big gap up tomorrow, looks like we are going to break DOW 10000 any day now.
ReplyDeleteI have been looking at the airline sectors. Some of the companies have dramatically rebuilt their balance sheet & improved cash flow. I think they will do pretty well once economic activities really started to pick up over the next few years.
airlines have been a mess for so long which makes it compelling for a turn around like you pointed out. I'll be looking at that..
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