Bottom-Fishing? The Current Pickings Don't Look Like Keepers

Last week, I wrote about the dangers facing investors as we head into the fourth quarter's pre-announcement season. Monday, we got a bitter taste of what the coming bad news can mean. We saw several sell-side analysts marking down some of the hottest tech stocks and sectors in order to get out ahead of the coming wave of preannouncements. The market swooned. But the market action wasn't particularly awful; it didn't even make the Nasdaq's top-10 worst day list on either a percentage or point basis.

On down days like Monday, you always hear the sell-side strategists on CNBC and elsewhere suggesting that now is the time to buy beaten up tech. Is it really? In attempting to give a preliminary answer to that question, my piece last week said, "Be ready to pounce when there is panic in the air, and before reasoned calm returns to the market. You still have time. Use it wisely to find leading companies in sectors you like for the next three to five years."

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