|07-08-2011, 10:15 PM||#1|
Join Date: May 2011
Favorites: WLT, TLEO, MO
Rep Power: 32
Growth is King on Wall Street
Tonight we found out that the IMF is going to bail out Greece, again. We also had very bad signs from Italy's economy that they could be the next Greece which would be much worse to the overall European Union as they are much more intertwined in the banking sector. These are exactly the reasons that I think the market could start to become very tricky and this huge rally we had in the last two weeks might be short lived. Trust me I hope I am wrong, but I am ready to move on the short side if need be in some stocks that I think are overvalued like OpenTable and TravelZoo.
Now there are always places in the market that go up even on down days, and today was no different. The same secular growth stocks that I have been preaching for months continue to be the winners. Green Mountain Coffee Roasters and SodaStream International are the main two that I have been preaching and both of them were up again today. So were names like Baidu that I like. Full disclosure, Google which I love and think will report a great quarter next week, was hammered dropping 14 points. Even if we see a down week next week or in the month of July (like I am forecasting), I feel these high growth names like SODA, GMCR, CMG, BIDU, and others will outperform the market. This is the way to play the next couple of months until the month of September with some safe high yielding defensive names mixed in. These names would include Altria, Bristol Myers and Eli Lilly. I also feel energy with oil and natural gas will be strong over the summer as the government released strategic oil funds and the price of oil went up. Very strange, but a sign that oil is not going down drastically anytime soon. I would stay conservative with yield in this space as well with names like Total, Enterprise Product Partners, and Kinder Morgan which all pay a hefty dividend.
Even though I am cautious and have a decent amount of cash on hand, I like these two places to put my money to work, with the occassional short layered in when ready for the taking. It has worked for a few months now irregardless of the market direction and will continue to do so until it stops working.
Until next week, have a great weekend!
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|07-09-2011, 11:13 PM||#2|
Join Date: Jul 2011
Favorites: AAPL, WU, LNKD
Rep Power: 24
Thanks for the post. I like the look of those growth stocks you mention. The coming weeks/month may be challenging for the market.
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|BMY, CMG, EPD, GMCR, KMP, LLY, MO, open, SODA, TOT|
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