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TheStreet Open House

2 Stocks I Am Buying While Others Are Afraid

Stocks in this article: PZNGA

NEW YORK ( TheStreet) -- Sometimes all I can do is sigh, step outside and breath in the cool "June Gloom" Santa Monica air.

It boggles my mind -- people who have lived in Southern California their entire lives appear confused when it gets cloudy in LA in June. Have a look west at that thing called the Pacific Ocean and do some basic meteorological research. In less than five minutes, you'll see that "June Gloom" is actually a typical and easily explainable annual weather pattern.

I love it. In fact, if I could, I would put all my money on the sun in June, as I wait for the inevitable rebound come July. Never short the sun in Southern California.

Some investors (not you) are a lot like dumb blondes. The same thing happens repeatedly and they continue to react the same way every time. They learn nothing from history. They lack the capacity to critically consider the way things -- be it the weather or stocks -- tend to ebb and flow.

If you follow the stock market at all, you see this psychological phenomenon at play on a daily basis.

Pandora

Case in point: Tuesday morning, my Briefing.com feed warns me that Richard Greenfield of BTIG Media thinks Pandora (P) investors "should be concerned" because the social streaming music app Songza "explodes to top of iOS charts." That almost sounds ominous.

Songza did indeed pop to No. 2 on the iOS free apps chart. Should Pandora, at No. 22, be concerned that it also trails Hide the Fart and Are You Smarter Than a 5th Grader?. But wait, here's a more logical comparison: Maybe investors in #30 Facebook (FB) should freak out because the social network trails No. 29 Twitter.

Now, make note, this data is as of Tuesday morning. Monitor those charts and, yes, you can be an alarmist professional stock analyst just like Richard Greenfield! The rankings change constantly.

The Songza app became available on iPad the other day (it was originally only available for iPhone) and it popped. If you follow those charts, you can find a cause for "concern" almost daily.

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