Take the Opportunity to Raise a Little Cash

 | Jul 08, 2016 | 10:16 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:










What a tape. We have to watch oil, European banks and China, among many other things. Each have more unknown and unpredictable forces driving them than we can count. We are in unprecedented times in many respects, which yields a lot of caution.

And deservedly so. We are zero bound in global rates. Currency, trade flows and commodities are gyrating aggressively in six-month bands. Even retail comparables, month-to-month, are difficult to forecast.

Take Gap (GPS) ; following first quarter results that fell well below expectations, last night it posted a +2% comparison for June, well above the forecasts for -3.1%. Well done. Analysts are calling for "Green Shoots" in retail now after one of the most abysmal quarters in retail, overall, that I can remember. Numbers will likely revise higher as a result of this stabilization in near-term comp store sales.

And what about the jobs number? Strong, after a few months of disappointments. Around 130pm, there will inevitably be someone on CNBC saying the jobs number will prompt the Fed to raise rates and the market will give back the gains of the morning. It is uncanny.

This is just the market we are in: "Follow the most recent trend, let fundamentals take a backseat, and proceed." For me? I think some protection is still warranted here. Take opportunities to raise a little cash in names that are working well. I think buying stocks with solid fundamentals in the domestic economy continues to a good play. I like restructuring workouts, like Harsco Corporation (HSC) , and trying to find growth at a reasonable price.

Some recent pullbacks in small and mid-cap growth stocks are appearing attractive to me at the moment. IPG Photonics IPGP, Whirlpool Corporation (WHR) , Anixter International (AXE) and Lindsay Corporation (LNN) all seem interesting today to slowly put some money to work in newer ideas. 

I've written on Anixter, Harsco, and Lindsay so far, as I collectively build out my "Real Money Portfolio" of alpha longs and shorts.

Columnist Conversations

View Chart »  View in New Window » BA chart I'm STALKING this one for a buy trigger........
View Chart »  View in New Window »   WEEKLY
BABA is still dancing on key weekly support here.  Wait for a trigger! View Chart »  Vi...
BABA is still dancing on key weekly support here.  Wait for a trigger! View Chart »  Vi...



News Breaks

Powered by


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

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.

FactSet 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.