Industrials Aren't Making It Easy

 | Sep 25, 2012 | 6:27 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

cat

,

cbe

,

etn

,

bmy

,

kft

No, it didn't feel good going home long. No, unless you owned Bristol-Myers Squibb (BMY) or Kraft Foods (KFT), you feel mauled.

But you also have to admit that until you saw the riots in Spain, the bulls looked like they could break the losing streak and start some serious end-of-the-quarter-and-month mark-ups.

Didn't happen.

I admit I am torn here. We have been buying a mixture of the Bristols and the Emerson Electrics (EMR), pretty much on a 2-to-1 basis. But the Emersons can take you down a lot more on the 1 than Bristol can take you on the 2.

But the industrials are so, so far behind the market that I would rather be a buyer into the weak August of Emerson than a buyer up here in Bristol after it has had a bit of a run. I like Eaton (ETN) in the middle of its 52-week range ahead of the Cooper Industries (CBE) deal closing more than I like Procter & Gamble (PG) at its 52-week high.

Of course, the issue is, how much performance are you willing to lose to catch a fourth-quarter rally in the industrials off of good news?

Today, the answer was none. But how much was Spain and how much was Caterpillar (CAT)?

I bet 65%-70% was Spain and the rest CAT-like ramifications, and if we don't get another CAT and don't get more protests, then we will start climbing by the end of the day, a notoriously difficult day to judge because of the Yom Kippur holiday. 

Columnist Conversations

The DBC is surging again today. Yesterday the commodity index jumped 3.6% closing above an overhead trend...
What is the purpose of Fed Transparency if it isn't too add some level of certainty? As Time Magazine wrote "...
Wish you had brought some cooler weather with you, we're in a sauna here.
Out on the West Coast -- not in on Monday. So Monday's "Trade of the Week" coming up today in my Diary now. Sh...

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.