I had listed three stocks to follow out yesterday : ZOOM, ADAT and ICLDW
ZOOM reported third quarter losses yesterday morning, and therefore it was better to stay away from this stock. However, if you have invested in this stock, I would suggest a Sell.
Since the overall US market was weak yesterday, both ADAT and ICLDW fell as well.
So here is my Rule No. #1 : always follow News, and if the overall market is falling wait before you invest in any stock. It is sometimes good to wait and watch the market before you make your move, and yesterday was just one of those days.
Festive seasons like Christmas means more investing by consumers on Groceries and travel, and Retail in general. It is therefore the Retail sector that steals the show during this period. Dec and Jan are therefore a good time to watch Retail stocks. Also, noteworthy is the point that since Retailers sell more in this period, they will post better earnings report in the first quarter of the year.
Since all other sectors have little momentum during the holiday season, it is my favourite Oil & Gas sector that investors turn their attention to during this season. Hence the other sector that needs to be followed closely now is the Energy and Oil and Gas sector.
Some of the stocks worth watching in the Retail sector are :
Cabella(CAB) : has been recently upgraded to a BUY, and will probably see some upward movement today, a good one to invest if you are planning to make a quick buck. Make sure to get out of it within the week.
American Eagle Outfitters (AEO) : the earnings report is due 6th Dec, however the projected growth estimates for this stock are stagnant for the next few months, and hence I would not be interested. It is probably a good BUY in the long run if you are interested to invest now and wait for a year, to see if the stock goes up. However you will most probably get a better BUY somewhere near its next earnings report, so I would suggest to wait for the time being.
Now moving to the Oil & Gas sector :
MPC: everything is in favour including the recent upgrade to a BUY. Looks like a good BUY at this point.
OK, so we do consider earnings report and recent Upgrades and Downgrades in determining which stocks to invest in. How earnings and upgrades/downgrades can affect the movement of a stocks price, and how technical analysis can help us to determine at what point this movement will happen, I will try to cover in my next post.
Till then, Happy Learning and Happy Market Watching!