Dear Subscribers,

The market is pushing the highest levels since May of this year. That is a nice 10% above the recent lows. And about 6% below the recent highs. Looking into my crystal ball I bet that we will get close to those old highs before the year is out. But in the near term, I think the market will most likely go a bit lower. Why? First, because August and September are traditionally two of the worst months of the year for the market. It's like the "ghosts of crashes past" come back to haunt us year after year. Second, the strongest economic indicator right now is corporate earnings. The rest look mediocre at best. So I don't imagine there will be too much good news to keep stocks aloft until 3rd quarter earnings season kicks off in mid-October. Combine these two elements together and it says that traders should take a slightly more defensive posture at this time and longer term investors should not fret this brief turn of events. Hold on to your best stocks. Then perhaps buy more quality picks on the dips.

Discover these top commentaries from Zacks.com:
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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

Today's Top Stories: Tuesday- August 10, 2010

ZACKS RANK BUY STOCKS

• Aggressive Growth - Lear Corporation (LEA) reported quarterly sales of $3.0 billion and income came in at just under $171 million, or $3.16 per share. Lear more than doubled the Zacks Consensus Estimate, which was calling for just $1.30. Read More...
   
• Growth & Income - Haliburton (HAL) announced second-quarter revenue of $4.4 billion, an increase of 25.6% from the year-ago quarter. The company had earnings of $0.52 per share, topping the Zacks Consensus by 15 cents, or 40.5%. Read More...
   
• Momentum - Las Vegas Sands Corp. (LVS) second-quarter revenue was up 51% from last year to $1.06 billion. Earnings also came in strong at 17 cents, 89% ahead of the Zacks Consensus Estimate. Read More...
   
• Value - The Andersons Inc. (ANDE) reported its second quarter results and surprised on the consensus for the third straight quarter. Earnings per share were $1.36 compared to the consensus of $1.19 per share. Read More...
   

Learn how to profit from our exclusive Zacks Rank stock-ranking system with free resources. Read More...

• Top 5 Balanced Funds
  Get balanced with Mairs & Power Balanced (MAPOX),Principal Strategic Asset Management Conservative Balanced A (SAIPX) Cavanal Hill Balanced (APBAX), CGM Mutual (SBBAX) and USAA Balanced Strategy (USBSX). Read More...
  

See all the great mutual fund resources.

• Bull Of The Day: Grupo TMM S.A.B. - ADR (TMM)
  Full Zacks research report: Read More...
  
  
• Bear Of The Day: Quest Diagnostics (DGX)
  Full Zacks research report: Read More...
  
  
• ZACKS INDUSTRY OUTLOOK: Restaurant Industry Review - August 2010
  Riding on the back of a slowly reviving U.S. economy and the consequent rise in comparable-store sales along with a drop in costs, restaurant operators posted improved results in the first half of 2010. Read More...
  
  
• Earnings Scorecard: Ventas (VTR)
• TransDigm (TDG) to Acquire Semco
• Earnings Scorecard: Talisman Energy (TLM)

• Google and Verizon: Consumers control Internet @ CNNMoney.com
• Owens Corning - Upgrades & Downgrades @ TheStreet.com
• The Best Computer Buys of the Year @ MAINSTREET.com
• What Baby Boomers Won't Live Without @ FOXBUSINESS.com
• Profit By Betting Against the Crowd @ Kiplinger.com

EDUCATION: Value

Companies "Buyback" Their Own Stock Read More...

PeopleAndPicks.com:

VIP "dmonnie" is generating a rhythm of profit trading with BUY calls in (ATMI), (MSPD), (UTEK) and (V). Read More...

• Profit from the Pros - August 7, 2010
• Momentum Stock Picks-August 5, 2010
• Growth & Income Stock Picking

EARNINGS TRENDS: Earnings Still Going Strong

Earnings season is almost over, and reported earnings are 42.3% higher than a year ago. Read More...

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

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