This Day On The Street
Continue to site
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

When Those 'In the Know' Don't Know

Don't worry. They will be back with heightened attention to the sequester and what it will mean for unemployment, but they are treading warily because if they come down too hard about how profits are going to fall, they run into the Bernanke buzz saw because he will keep the easy-money spigot going.

So what do you do? How do you make money from this pressure that they will exert on the market next week?

I say when we come in on Monday and we have no real deal or a deal that the people who know more than we do pronounce as bad, we are going to get a chance to buy a couple of high-quality companies at a discount.

I say you go all domestic and you go for our retailers and our financials, the two groups least impacted by Europe and yet two sectors that go down hard with the S&P futures.

The two best?

Next week PVH (PVH - Get Report) reports and I think that the Street has turned very negative on the company. I suggest you buy PVH calls, specifically the May 100s at $13. PVH reports on Wednesday and it will be able to talk about how the synergies between Warnaco, purchased recently, and PVH are much better than expected and that the Warnaco portion of Calvin Klein -- the part that PVH didn't own -- is going to do much better under PVH than it was under an independent Warnaco.

The increasingly negative analysts don't seem to remember that they got pessimistic ahead of the first time PVH reported after the Tommy Hilfiger purchase. This time I think will be no different.

I suggest the May calls to give the stock time in case there are other worries about the stock market that could bring this wild trader down.

And if you are wary of this one, buy half of a position before and half after, as I think that the analyst community will get positive on the company after it reports even if it doesn't do a terrific number.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs