Buying underperforming stocks at year's end

Discussion in 'Trading' started by newestmember, Dec 31, 2003.

  1. newestmember

    newestmember

    The market is getting pretty overbought here at the end of December, but I'm seeing several stocks that have sold off a little, with nice Q over Q growth, and rosy forecasts.... but I'm hesitant to purchase them, even at these more attractive prices, because the market is more than overbought.

    What's everyone else seeing/thinking here as the market closes 2003?
     
    #1     Dec 31, 2003
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  2. ig0r

    ig0r

    Small correction of the most recent rally and then back up for a few months, probably until the fall
     
    #2     Dec 31, 2003
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  3. BlueHorseshoe

    BlueHorseshoe

    Underperformers should rally strong in January, even if the overall market pulls back. It is called the January effect and it is quite consistent. Here is a good hotlist to get started:

    T
    EK
    LAB
    OCA
    PSMT
    Q
    SGP
    THC
     
    #3     Dec 31, 2003
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  4. range

    range

    I am playing the anticipated bounce of underperforming stocks into next week (including some on your list, BlueHorseshoe). If there is no meaningful terrorism over New Year's, then Friday could be a big up day, driven by a relief rally and by the first day of the quarter/year phenomenom. Nevertheless, I plan on hedging away most of the market risk over New Year's by shorting SPYs and/or QQQs from late today until early Friday.
     
    #4     Dec 31, 2003
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