Friday, October 5, 2007

Market Strength Continued

The market continues to perform well. Each potential event keeps getting shaken off (today: jobs report). I don't see any reason why this shouldn't continue in the short term. We may see a slight pullback in oil prices, but nothing to be concerned about as investors. The only thing still lagging a little is financials and home builders. I see value in some of the financial names right now. It's kind of funny how its playing out. The big banks wait until the market is having a good day, and then they announce that quarterly earnings will be down xx percent. This way, nothing is disrupted, and the market can shrug it off as a past concern, and not a future one. This also allows them to bolster their stock prices because when they announce earnings, they will beat expectations, which will have been lowered because of the guidance they've been giving us.

And of course Bush speaks about the economy only on days with good economic data being reported.

FYI: The portfolio of stocks that I've recommended is up 7.07% YTD. The biggest gainers have been international names, which is no surprise. The biggest laggards are the short ETF's I've recommended as hedges.

Things are looking pretty good heading into next week. I'm not excited about buying just anything, because stocks aren't that cheap. But there are opportunities being handed to us all the time, and I'll do my best to point them out.

Have a great weekend!

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