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.
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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...
Two "Must-Make Moves" Before Saturday August 14
Zacks research expert Kevin Matras has found unique ways to profit from two famous blue chip stocks. One offers a 7-to-1 reward/risk ratio, and we could close a big win in September – even if it trades sideways. The second only needs to go up +5.6% for us to gain +75% by November. But you must get in promptly.
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ZACKS MUTUAL FUND RANK
- 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.
BEST OF ZACKS EQUITY RESEARCH
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BEST OF ZACKS.COM PARTNER COMMENTARY
Companies "Buyback" Their Own Stock Read More...
VIP "dmonnie" is generating a rhythm of profit trading with BUY calls in (ATMI), (MSPD), (UTEK) and (V). Read More...
NEW ZACKS VIDEOS:
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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