As the 2nd quarter closes Sharp Trader thinks:
The Commodity rally will subside in the 3Q:08
Stocks with large short positions will rally in 2H:08
While we would continue to be short stocks as part of a pair trading strategy; we think the market is near the bottom as valuations get more attractive by the day.
As the quarter ends we would take profits in energy exploration related shares and go bargain shopping.
We would keep our FDX short position on as high oil prices will pressure EPS in the current quarter and as aggressive competition in the shipping industry persists.
We also think technology and telecoms will provide new market leadership as the financials and auto industries are still adjusting to the credit squeeze.
We expect consumers and businesses will look to technology for solutions to the energy crisis and expect spending on telecom systems and energy management solutions will fuel strong EPS growth.
Thought of the day:
If demand destruction is prevalent in the EU and In the USA where workers make $45,000 per year, how can middle class Indians and Chinese making $10,000 and $5000 per year respectively afford $4.00 per gallon gas?
About Me
- Rich Tullo
- Richard Tullo is a securities analyst and trader with more than 20 years of experience. During the late 1990s he brought more than 40 technology companies public as a NASDAQ market maker for Hambrecht & Quist and Cowen and Co. From 2001-2004, Rich Tullo was an investment analyst for Providence Capital an activist hedge fund in New York. More recently, Rich was an analyst with Sidoti and Company a noted independent research firm and published investment reports on the Media and Telecom industry. Rich Tullo has also published numerous editorials, reports and industry white papers on infrastructure investing and exotic investment instruments