Unfortunately I was correct that the boost from Friday wouldn't last long. I think very little of it had to do with the mediocre Personal Income and Outlays report today (which actually had some good news about inflation in there). Plain and simple, there is just tremendous pessimism out there. And when you are looking for bad news, you'll generally find it. So that "glass is half empty" view of things has us right back at Dow 10,000. We bounced up from here the last 2 times. Maybe 3rd time is the charm…probably not.
In my book there is still just too much time between now and 3rd quarter data comes out in mid October. And in that time the trend remains to the downside with Dow 9600 and S&P 1000 acting as sirens songs drawing us to crash upon the rocks. Looking out to that 3rd quarter data the most important elements are corporate earnings & GDP. If those numbers are solid, then it will motivate some of the double dippers to join the muddle through economy camp...leading to a nice upside rally. If the news is bad, then more of us may be forced to join the double dip camp leading to more downside. Only the most foolish investors pretend that they know with 100% certainty what the outcome will be. The rest of us are much better served with a more balanced and flexible view that is prepared for either outcome. i.e. Please don't be a fool now...or ever.
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Today's Top Stories: Tuesday- August 31, 2010
ZACKS RANK BUY STOCKS
- Aggressive Growth - AutoNation Inc. (AN) reported quarterly results that showed a 20% increase in revenue, to $3.1 billion. Auto sales are making a comeback in the U.S. with sales rising 12%. Read More...
Growth & Income - Rollins Inc. (ROL) reported its second quarter results which saw revenue rise 5% to $298,8 million from $284.6 million in the year ago period. All major brands saw revenue increases. Read More...
Momentum - Genesis Energy LP (GEL) Q2 earnings came in strong at 29 cents, 38% ahead of the Zacks Consensus Estimate. Genesis also announced that it will distribute 37.5 cents per unit holder for a total of $14.5 million. Read More...
Value - Diodes Inc. (DIOD) reported second quarter results which saw revenue rise 43.6% to a record $103.9 million compared to last year. It was also a sequential increase of 9.1% over the first quarter of 2010. Read More...
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Energy. It's been the biggest and most profitable game in town for over a century. And that will be the case for the next 100 years, too. The only difference will be how the money will be made. Dr. Kent Moors invites you to play "rich", the way they do in Texas. And he's making it easy...click to continue
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