No, I am not saying ignore what happens in Syria. I am not oblivious to what the president might be saying about Russia, particularly when I think he mistakenly says this is the worst that it has been even during the cold war. Perhaps he's not familiar with the Cuban Missile Crisis.
But the fact is the Bristol-Myers (BMY) theorem - what does Syria have to do with the Price-to-Earnings multiple of BMY - is very much in play here. You simply can't figure out what kind of discount stocks should get off the lack of common ground with the Russians so what happens? The fundamentals prevail and right now the fundamentals on the eve of earnings seem pretty darned good.
For example, the oil stocks, given the tension in the Middle East, are at last reacting and it is an unloved sector. I don't trust it long-term but for a trade it seems pretty palatable. We are holding on to our Cimarex (XEC) ahead of our club conference call tomorrow given that it is down so much that it is totally out of sync with the group.
The cloud kings remain totally buyable. I think the drug stocks, after a nice run, are consolidating.
But if you want to know what I think could work the loudest here? How about Amazon (AMZN) ? You have a president that is preoccupied with Russia and the fake news coverage on it. That means he may not have the bandwidth to attack Amazon which means that the stock, which is at a critical technical juncture, can really take off.
Facebook (FB) ?
I think that Zuckerberg's doing well. But I never got what I wanted, a real outside investigator who reports to the board to see how much the company is really complying to its own rules and to dig up any of the past that must have a light shined on it.
Makes sense? Not to the mild-mannered dictator of the operation. All I ask is "what does he have to hide?"
