As mentioned last night, Cisco reported a weak outlook and as expected, too the stock down big today. It also led to investors selling Salesforce bigtime (a company I was short in my test fund til yesterday – bad timing!) .
With those terrible reports, the market was still green slightly today but ended weak. Interestingly, after hours the markets turned up then got slapped down by JP Morgan’s report of tremendous trading losses. The market might open weak tomorrow but this was a one time event that will likely pass by.
The market overall does look weak so this event has the risk of pushing the market over the cliff of resistance but the strength of the buy-the-dippers is duly noted and can’t be counted out. It’s odd when the earnings for S&P companies in the second half of this year are expected to grow anemically, that stocks would hold up. But they are so far except when company specific news comes out – and there is no strong buying to hold up any one company – it’s more the index.
We have to watch and see what happens. I have plans for the following scenarios:
- market up (buying, duh)
- market down (selling and selling short)
- market flat (income ideas)
- gold/money printing (discovery ideas and big caps)
- small cap opportunities (new ideas, growing stories)
What’s your plan? Do you have one?
At the time of this writing, I or my clients owned the following securities mentioned in this article: NONE