We have always been positive about this downturn in the US market. We talked about Fiscal cliff as a tremendous chance to get into the market when there are indications of a resolution. These few days do seem good. The progress between the Republican and Democrats are going relatively smooth...
See this article:
You may not want to go into the stock market only when the policy is approved.
Get ready to act now by studying which stocks are good with their earnings or which stocks that are in-line with their earnings but grossly oversold these few days.
If you are hesitant to go in, just study first and act later when more confidence come back into the market.
I am seriously looking now at some Singapore big chip counters like Kep Corp, Semb Corp and Semb Marine, which are bashed upside down.
In US, the techological stocks like Cisco, Apple and Facebook sure looks tasty too!
For our options grads, remember that Cisco and Facebook has good earnings. Apple may have reached its low of centennial figure of $500 when it touched $505 on Friday.
Remember that we still believe there is a good chance for a late run rally into the holiday season.
Btw, this Thursday is thanksgiving holiday in America. After thanksgiving, US has a Black Friday shopping day where people will go shopping. US will then issue a sales volume to indicate whether the consumer sales are good. Last year, it was one of the best ever in history. Let us see how it is this friday! My opinion is that it shouldn't be bad as unemployment rate has dropped.
Walmart will start its tech sales on Saturday as indicated in this article:
If the tech sales are great, expect a revival from the tech sector, especially Apple and Amazon, with the iphone and kindle sales.
Do take note that Technological, Retail and Tour-related sectors or industries are the best industries to look at for a Christmas Rally!