We were recapping the trading day now with Fred and Rob at Lange Financial Services and thought we would post their thoughts below for our readers. W&BR
Market action today was excellent. Down about 80 DOW points in mid afternoon, heading towards what was seemingly going to be a sharp down day, stocks rallied sharply led by IBM, APPLE, and GOOGLE to end off only 3 DOW points. We view these three stocks as very attractive for investment accounts. Both the NASDAQ and S&P 500 ended up on the day. Coal stocks began acting better, led by statements from Peabody (BTU) in its conference call. Higher coal prices and earnings by the company were projected, carrying into 2012. US Steel ( X ) was up $2.86 on the day, despite a larger than expected 4th quarter loss, with strength reflecting higher steel prices. Cliffs Natural ( CLF ) should be a beneficiary of higher steel prices, being a very large producer of iron ore. Decker, Intel, Qualcomm, Vodafone acted well. Cloud computing shares including VMW, CRM, and FFIV also stabilized. We would view these stocks as trading vehicles at this time.
There were more bullish economic and market opinions from Hedge Fund Manager John Paulson, who also reported his fund made over $1 Billion in the shares of Citigroup last year. Laszlo Birinyi, also is extremely bullish on the markets and economy. Both views are in line with the theme we have presented since the third quarter of 2010.
Some further overall market weakness/consolidation seems possible on the shorter term. However we would view such action as an opportunity to further accumulate growth stocks. The content of the State of The Union Address, and the comments afterwards from Congressman Ryan tonight may have an important impact on the overall market in the days ahead.