This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Coming Week: Searching for Sanity

Stocks in this article: hd low f

Poor retail data weighed on stock prices last week, and Len Blum, managing director for Westwood Capital, notes that some retailers will be reporting earnings next week, as well. Blum expects negative news from home-improvement store operators Lowe's (LOW) and Home Depot (HD), though the discounter BJ's (BJ) may have some positive news as consumers flock to bargain stores.

But even that may not be the best of news for the U.S. economy. "I think what's driving the market is that the American consumer -- who has seen the value of his home fall dramatically, is losing his job, seeing the value of stock holdings decline -- is shell shocked," says Blum. "I think the consumer is pulling way back, and it's going to be worse than we fear."

Another factor lurking in the distance is whether technical trades and forced liquidations by hedge funds and mutual funds have run their course. Judging from Thursday's last-minute 500-point rally, Marian Kessler, co-portfolio manager of the Becker Value Equity Fund, suspects not.

"Was that short covering?" she asks. "It's certainly a possibility that it was a technical rally. It certainly was a low-quality rally. You don't really know what kind of manipulation is going on in the markets, and technical trading seems to still be playing a role."

Kessler has taken advantage of the market volatility, booking profits over the summer, then using that cash to buy out-of-favor stocks last month at what she calls "bargain-basement prices." But she notes that the economic outlook, especially concerning retail sales is "grim," even if positive news comes out of Washington next week as Congress considers a stimulus package, an automaker bailout and other emergency measures during its lame-duck session.

Shacknofsky expects further volatility ahead. "These good days that we're having are dead-cat bounces or rallies in the bear market," he says. "And whenever it gets some strength, you'll just see the market sell into it."

RealMoney Barometer Poll
1 What would best describe your stance heading into the coming week of trading?
2 Which of these sectors do you think is set to move up in the coming week?
3 Which of these sectors do you think is set to move down in the coming week?

View the results without voting

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs