Our first full week of 2007, and we have a full slate ahead. From the International Consumer Electronics Show (CES) show opening in Vegas this week to the MacWorld expo in California, techies and traders alike will be hit with lots of news flow. Motorola (MOT - commentary - Cramer's Take) and Tellabs (TLAB - commentary - Cramer's Take) are the two highest profile tech blowups to start off the new year. Not really classy on Tellabs' part to try to sneak out their warning at 9:00 p.m. EST on a Friday night. That couldn't have waited till 7:00 a.m. this morning? Did they think if they put it out late on Friday that we wouldn't notice? Silly, really.
As for the broader markets, there's plenty of crosscurrent to deal with there, too. 2007 has started with lots of volatility. Even the VIX, which attempts to measure volatility and had plummeted to record lows in December, has climbed steadily to kick off this new year and is already up more than 20% from its December lows.
There's been a serious rotation out of all things commodity related in the last few weeks, and that rotation picked up steam in the first few trading days of this year. And while I'm obviously still of the belief that tech is going to be a big leader in 2007, I don't expect it to be as easy as extrapolating the first few days' action out to the rest of the year. I'll look to gently scale into my favorite long names as I did last week in buying first Google (GOOG - commentary - Cramer's Take) and then Research in Motion (RIMM - commentary - Cramer's Take). We'll have plenty more ammo to put to work as the year progresses.
Let's hit 'em hard this week! More in a bit.
At the time of publication, the firm in which Willard is a partner was long Google and Research in Motion, although positions can change at any time and without notice.
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Cody Willard Blog Flat Week Is Full of Questions 1/5/2007 4:06 PM EST The weekend thinking agenda is full just three days into the trading year.
Cody Willard Blog Think Globally About Complacency 1/5/2007 1:02 PM EST Disclocations in markets around the world prompt thoughts about bonds and opportunity.
Cody Willard Blog Little Import to Jobs Data 1/5/2007 11:06 AM EST But news can still take the market down for now.
At the time of publication, the firm in which Willard is a partner was long Google and Research in Motion, although positions can change at any time and without notice.
Cody Willard is the manager of CL Willard Capital Management, LLC. He is a regular guest on Fox News, CNBC and other networks, and he writes a monthly column for the Financial Times. He is also an adjunct professor at Seton Hall University and the author of TheCodyReport.net, a monthly stock market newsletter. Willard appreciates your feedback -- click here to send him an email.
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