Feeling More Optimistic

 | Dec 21, 2012 | 10:58 AM EST  | Comments
  • Comment
  • Print Print
  • Print

Breadth is running around 4-to-1 negative, but the point loss isn't that horrendous considering the surprise news. Market players are trying to figure out how this fiscal cliff issue might be resolved and they are already feeling a bit more positive as they consider some scenarios.

I've been complaining quite a bit lately about how difficult it has been to put money to work. I'm feeling much better about that this morning and feeling optimistic that this sudden selloff will help to create better opportunities. Already I'm seeing a number of things I'd looking to accumulate as conditions develop.

The big problem we face right now is that we are looking at some of the thinnest trading of the year during the holidays, as well as lots of end-of-the-year action that has little to do with the fundamentals of individual stocks.  Tax planning and portfolio adjustments will be taking place over the next week and that can create some random and seemingly illogical action. With the danger of going over the fiscal cliff becoming more of a reality, there will be added pressure to do some selling for tax purposes.

One stock I'm adding this morning is MagnaChip Semi (MX). The stock received a Strong Buy rating and a $24 target from Needham this morning and was named a top pick at Citigroup last week. In the last quarter they topped earnings estimates by 120%, which was the sixth-straight positive surprise.

I'm going to be very selective with new buys here, but this hiccup and the increased volatility this morning isn't at all bad from a trading standpoint.

Columnist Conversations

The bearish star cluster on the Starbucks (SBUX) chart that I highlighted last week preceded price action this...
Ford is working on its third straight gain following two days of steep loses to start this week. At this...
Market is holding on for gains for now but think Doug Kass is right and could see some decent profit taking by...
I have a full blown article surrounding the U.S. Retail Sector coming out on soon, but for now let's just lo...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

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.