Friday, November 30, 2007

Down Nov leads to up Dec, Sell Jan

I think the rally of the last few days is largely a lot of short covering, but you can't miss the signs of a short term rally through the end of December. I think people are anticipating the Fed cut, either 25 or 50 bp, and a better-than-expected holiday season.

It's worth while to look for a few strong stocks that will benefit the most from seasonal sales: winter clothing, cigarettes, alcohol, natural gas/heating oil producers, and obviously tech/electronic.

Be critical of the stocks you decide to go with, as we will most likely see a return to volatility after the holiday shopping season.

Will be watching: GRMN, BIDU, GOOG, SIRT, EQT, OKS,

Favorites: CU (adr), COLM,

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