Lunch time lives up to it’s billing as traders take morning profits. Markets off their best levels as the S&P slips under 800. For certainty to prevail we should finish above that level and stay there for a while……two days?
Watch for the 2:30 hour. Should things hold then it is likely to close higher.
Should we get confirmation above 800 then it won’t really make a difference what is bought. The market will take up almost everything, just as it takes it down.
For maximum gains, at greatest risk, one would buy “them that got ya here.” Banks, even though as much as 150% off lows, are probably a good bet. I don’t have the stomach for them. But would I to buy I would look at super regionals. Northern Trust, Sun Trust, PNC come to mind.
Technology should also lead us out. My preferences are for the super-large: IBM, Hewlett-Packard, Microsoft, Oracle. The smaller names, those focused on smaller technologies, are likely to outperform. But owning these requires a specialized knowledge I don’t have.
Emerging markets outperformed the US last week by a wide margin. They go down pretty fast, as well. I may use EEM, an ETF.
Of course, all this talk of buy lists may be just that, talk. If we don’t hold here then we will be back to day trading.
Meanwhile, days like this sure makes people happier.
