Monday, November 19, 2007


Financials need to recover in order for the bull market to continue. Without the financials, this market is lost. Sure the markets have risen without the financials the last few months but, we've reached a stage where the underperformance by financials is taking its toll on the markets. Look at the way big names like C BSC CFC WM BAC WFC MS MER LEH have performed over the last 6 months. If they continue this downward spiral we are going to be in a serious bear market. Technology cannot carry as any longer.

If the markets do recover I think beaten down former momentum names will outperform . Names like CROX UA ZUMZ VDSI RVBD BCSI NILE LDK NCTY DRYS are on my list.

I am also making a China list of stocks. Names that I like are CTRP SINA NTES SOHU NINE CNTF COGO LFT CFSG CPSL AOB SDTH CSUN STP XFML FMCN STV .

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