Will PIIGS Make A Major Correction in the Market?

Portugal, Italy, Ireland, Greece, and Spain have the opportunity to make a deep correction.    I suspect it will only create a slighty above normal correction of 5-10%.   Additionally, it feels like there are a lot of profit takers who will just use this as an excuse to sell.    If this is true, now is the time to sell hated stocks and especially those with mediterranean markets.    In my case EUROX and possibly C both might be influenced by the south europe debt contagion.    Not sure what else.

Let me know your thoughts?

Bought Some Coca-Cola Today

The Reasons for my Buy of KO:

1. Long-term Buy - Global Duopoly
2. Long-term Buy - Steady Trackrecord
3. Short-term Buy - Dividend is Safe
4. Short-term Buy - Has resistance to market drops.    Therefore, I should not expect the stock to drop as much during a global downturn.    Low Beta. 
5. Short-term Buy - Steady stock price.

Reasons for concern:

1. Long-term - will KO be able to continue with excellent management in the future.   
2. Short-term - Technology and Oil could outperform the market in the short-term.

Let me know your thoughts.   

PS - I sold some QCOM, because I discovered I really do not understand that stock, nor the reasons why it has had continued weakness lately. 

What To Trade In The Coming Week?

Anybody have any ideas?    The market still seems a bit high, but seems like it might be headed higher given the earnings season we have just had.   

Buy or Sell ADES

I own some shares of ADES.    I am having a tough time understanding whether to buy or sell.   Issues seem still too foggy and this stock seems to be more speculative each time I take a look.

Future Prospects = If government promotes this company as expected things could really take off!
Insider Selling = Concerning, and now extremely concerning.    Future prospects are really in question.

Debt = High, seems to be a another big issue which does not reflect well.  
Fundamentals = PE ratio non existent
Management Ranking = Low
Debt = High, seems to be a another issue of corporate leverage.  What is "Other Liabilities" on their balance sheet and why is that so big?

Interesting discussion on Yahoo Finance:
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_A/forumview?bn=26710

Other Key Information from Yahoo Finance:
http://finance.yahoo.com/q/ks?s=ADES+Key+Statistics

When Will This Market Be Too HIGH?

We are at 11,122.    Average P/E is not yet rich but not cheap any more.    Things still look positive but for how long?

Case for the Bulls:
More money coming into market
Market has cheaper valuation than foreign markets.
Inventories are low and replenishment cycle is positive.
Market is improving so why would commercial real estate be an issue.  
Earnings season is mostly positive.

Case for Bears:
What happened to crazy Iran?
What about Portugal, Ireland, Italy, Greece, and Spain?
What about California or other state bankrupsies?
Will commercial real estate drop in valuations debts clobber the regional banks?
Is the government going to continue the harassment of the investment banks?

The Goldman Sachs Opportunity

Given the inflows of money from mutual funds lately, it sounds like the public will try to get into the market yet.  Given a potential crowding into equities, I am going to do some buying at these levels anticipating the news becoming lessened over the next few days.   

Therefore I concur with Cramer and believe the legal problems that Goldman is having will eventually blow over. Additionally, since it is so important for the government to justify their hard stance on the banks to the public, I think the actual judgements if any will be far less than expected.   The important part will be to show that something is being done with the "Wall Street Fat Cats". 


PS - I do own some GS.   I am not buying more right now but will not sell. 

PSS - Given most of the Tarp money lent to banks has been payed back from the government, shouldn't the government be focusing on AIG and GM?    I do not believe they have payed anything back to the People of the United States.   Anyone know differently?

Is Money Starting to Flood Back Into the Market?

There seems to be very little that can spook the market.    Anyone know of a good indicator to track money flows into the market?

What about Inflation

With the dollar rising against its only real competition there is seems to be no chance of the dollar dropping in the near term. Portugal, Italy, Ireland, Greece and Spain will likely keep the Euro low for the short term. In the long term, the results of budget deficit should start to show up.

Is the Market Toppy or just on the Move

I think there is room for optimism.