Market Perspective | stockbee

9/10/2007

Market Perspective

Market continue to be volatile. Since mid July, we have witnessed number of 300 plus 4% breakouts on either side. Such high number of breakouts are rare and indicate indecisiveness.
The correction was triggered by credit crunch related to sub prime mortgage market. The financial markets and interbank markets is where the trouble is concentrated. Prior to this correction market has been rallying for 4 and half years and had no significant correction. So a correction is normal occurrence at this stage of market.
During such corrections investors tend to seek out quality stocks. Currently investors are preferring high capitalization stocks compared to small cap stocks. Out of the S&P stock universe stocks with high relative strength are :

AAPL,Apple Inc (Google Yahoo Earnings Chart)
ADCT,ADC Telecommunications Inc (Google Yahoo Earnings Chart)
AMZN,Amazon.Com Inc (Google Yahoo Earnings Chart)
APOL,Apollo Group Inc Cl A (Google Yahoo Earnings Chart)
AV,Avaya Inc (Google Yahoo Earnings Chart)
BIIB,Biogen Idec Inc (Google Yahoo Earnings Chart)
CIEN,Ciena Corporation (Google Yahoo Earnings Chart)
CMI,Cummins Inc (Google Yahoo Earnings Chart)
CSCO,Cisco Systems Inc (Google Yahoo Earnings Chart)
DE,Deere & Co (Google Yahoo Earnings Chart)
DJ,Dow Jones & Co Inc (Google Yahoo Earnings Chart)
EMC,Emc Corp (Google Yahoo Earnings Chart)
ESRX,Express Scripts Inc (Google Yahoo Earnings Chart)
FCX,Freeport Mcmoran C&G B (Google Yahoo Earnings Chart)
FLR,Fluor Corp (New) (Google Yahoo Earnings Chart)
GR,Goodrich Corp (Google Yahoo Earnings Chart)
HLT,Hilton Hotels Corp (Google Yahoo Earnings Chart)
INTC,Intel Corp (Google Yahoo Earnings Chart)
JNPR,Juniper Networks (Google Yahoo Earnings Chart)
MHS,Medco Health Solutions (Google Yahoo Earnings Chart)
MON,Monsanto Co (Google Yahoo Earnings Chart)
NE,Noble Corp (Google Yahoo Earnings Chart)
NOV,National Oilwell Varco Inc (Google Yahoo Earnings Chart)
NVDA,NVIDIA Corporation (Google Yahoo Earnings Chart)
RIG,Transocean Inc (Google Yahoo Earnings Chart)
SII,Smith Internat Inc (Google Yahoo Earnings Chart)
SLB,Schlumberger Ltd (Google Yahoo Earnings Chart)
SLR,Solectron Corp (Google Yahoo Earnings Chart)
SNDK,Sandisk Corp (Google Yahoo Earnings Chart)
VRSN,Verisign Inc (Google Yahoo Earnings Chart)
WFT,Weatherford International Ltd (Google Yahoo Earnings Chart)


Financials, mortgage and housing related stocks and retail stocks are under pressure for sometime. Stocks from S&P universe witnessing selling pressure are :

ABK,Ambac Financial Group (Google Yahoo Earnings Chart)
AKAM,Akamai Technologies Inc (Google Yahoo Earnings Chart)
BC,Brunswick Corp (Google Yahoo Earnings Chart)
BSC,Bear Stearns Companies (Google Yahoo Earnings Chart)
CBG,Cb Richard Ellis Svcs (Google Yahoo Earnings Chart)
CC,Circuit Cty Strs Inc (Google Yahoo Earnings Chart)
CFC,Countrywide Financial (Google Yahoo Earnings Chart)
CIT,Cit Group Cl A (Google Yahoo Earnings Chart)
CPWR,Compuware Corp (Google Yahoo Earnings Chart)
CTX,Centex Corp (Google Yahoo Earnings Chart)
CVG,Convergys Corp (Google Yahoo Earnings Chart)
DDS,Dillard's Inc (Google Yahoo Earnings Chart)
DHI,D.R. Horton Inc (Google Yahoo Earnings Chart)
ETFC,E Trade Financial Corp (Google Yahoo Earnings Chart)
JNY,Jones Apparel Group Inc (Google Yahoo Earnings Chart)
KBH,Kb Home (Google Yahoo Earnings Chart)
KG,King Pharmaceuticals Inc (Google Yahoo Earnings Chart)
LEH,Lehman Brothers Holdings Inc (Google Yahoo Earnings Chart)
LEN,Lennar Corp Cl A (Google Yahoo Earnings Chart)
LXK,Lexmark International (Google Yahoo Earnings Chart)
M,Macy's Inc (Google Yahoo Earnings Chart)
MCO,Moody's Corporation (Google Yahoo Earnings Chart)
MTG,Mgic Investments Corp (Google Yahoo Earnings Chart)
ODP,Office Depot Inc (Google Yahoo Earnings Chart)
OMX,Officemax Inc (Google Yahoo Earnings Chart)
PHM,Pulte Homes Inc (Google Yahoo Earnings Chart)
RSH,Radioshack Corp (Google Yahoo Earnings Chart)
THC,Tenet Healthcare Corp (Google Yahoo Earnings Chart)
VMC,Vulcan Materials Co (Google Yahoo Earnings Chart)


More stocks from S&P universe were under pressure on Friday. Some of the stocks down 4% or more on higher volume on Friday from S&P list were:

AA,Alcoa Inc (Google Yahoo Earnings Chart)
AKAM,Akamai Technologies Inc (Google Yahoo Earnings Chart)
ASD,American Standard Cos (Google Yahoo Earnings Chart)
CBG,Cb Richard Ellis Svcs (Google Yahoo Earnings Chart)
DELL,Dell Inc (Google Yahoo Earnings Chart)
FIS,Fidelity National Information Services Inc (Google Yahoo Earnings Chart)
GM,General Motors Corp (Google Yahoo Earnings Chart)
HOG,Harley-Davidson Inc (Google Yahoo Earnings Chart)
HPC,Hercules Inc (Google Yahoo Earnings Chart)
ITT,Itt Corp (Google Yahoo Earnings Chart)
LSI,Lsi Corporation (Google Yahoo Earnings Chart)
LTD,Limited Brands Inc (Google Yahoo Earnings Chart)
ODP,Office Depot Inc (Google Yahoo Earnings Chart)
OMX,Officemax Inc (Google Yahoo Earnings Chart)
PH,Parker Hannifin Corp (Google Yahoo Earnings Chart)
RSH,Radioshack Corp (Google Yahoo Earnings Chart)
SNDK,Sandisk Corp (Google Yahoo Earnings Chart)
TEX,Terex Corp (Google Yahoo Earnings Chart)
WYN,Wyndham Worldwide Corp (Google Yahoo Earnings Chart)


Friday's job numbers were significantly below estimate. This had many market commentators predicting recession. Some have made calling recession a hobby, they have been calling for it since 2003. The most respected recession predictors are ECRI. ECRI currently is not forecasting any recession. ECRI has a proven and well researched methodology and their forecasts are based on number of indicators they track.

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