This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

The Day Ahead: Snipe the Bull -- or the Bear

Stocks in this article: GPS

Boom! Wake up ladies and gents. It's show time. Do you have grand visions of mailing it in during this holiday-shortened trading week? Better put back on the camouflage gear and dust off the scope on the investing sniper rifle, for we are at a crucial juncture in the markets. Your mission is to take out either the bulls or the bears with a clean shot, and to do so after developing a thorough plan -- because, for the first time since the elections, two strong opposing views are in the roaming the forest.

I am not talking about the gibberish that had been spewed by book-pumpers throughout October and into the election. On the contrary, there is new, tangible evidence to suggest stocks have gotten too cheap, assuming we see a "compromise budget" from Congress (which is different from the austerity budget reflected by the recent decline in stocks). Still, while I feel the passion in the voice of the bulls as they wave around an array of fancy technical measurements, keep in mind that the bears remain ravenous -- and they have every reason to be skeptical of the claims by the bulls. There is this creepy sense that another 200-down day on the Dow is possible if the political-suit-wearers do not deliver incremental holiday cheer on fiscal cliff at each presser.

Market Sanity Check

After Friday's session, when stocks reversed earlier losses on a good deal of volume -- with Apple (AAPL) entering into the mix, no less -- there are apparently green shoots forming beneath the soil. The rationale is that the fiscal cliff will be mitigated and that the U.S. will narrowly avert recession in the first half of 2013 -- and that, in any case, this latter scenario is one the market has already discounted. A problem with this logic is that the corporate profitability picture remains a divergence, and the macroeconomic data have been of no help thanks to Hurricane Sandy.

So, in all, an investor is left buying on hope the market is correct in reading daily political headlines. You dig?

Select the service that is right for you!

COMPARE ALL SERVICES
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

Markets

DOW 17,300.38 +231.51 1.36%
S&P 500 1,995.26 +22.52 1.14%
NASDAQ 4,606.7080 +58.8740 1.29%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs