August 13th, 2009
Everyone just keeps waiting for the market to back down a bit but it just doesn’t want to. Every time we think today is going to be that day, in comes a new wave of demand. I’m not complaining but enough time hasn’t yet passed since the crash this past winter that I also can’t help but feel acrophobic of the height and fearful that the longer it continues going up, the worse the correction/punishment will be when it finally and ultimately does go down.
It looks like we’re approaching Labor Day (believe it or not), summer vacations are almost over (boo hoo), and all that sidelines money is going to have to be put to work. Those money managers that have been playing conservatively have fallen way behind and the only thing left for them to do is to chase those hot stocks. And there are many of them. All you have to do is go back and look at some of the spreadsheet lists posted here and you’ll see their names.
So if you’ve missed picking those low hanging fruit and the 25-70% gains since March from those who threw caution to the wind and bought them way back when, so what do you now? Which are the stocks that have formed great bottom patterns and haven’t yet bid up too much. Their number is getting fewer but here are a few:
- ZEUS (Olumpic Steel)
- X (US Steel)
- MWW (Monster Worldwide)
- NSC (Norfolk Southern)
- CMI (Cummins)
- LOGI (Logitech)
- WYNN (Wynn Resorts)
Some of these could be big winners, some may not go anywhere. Then again, it may be too late and they’ll all be pulled down as the market finally does retreat. But for late comers, one or two in this group might be a good place to begin your search for late bloomers.