Learn From the Biggest Losers
As we move deeper into the summer, the market continues to confound and confuse. The mini flash-crash activity caused by Knight Capital (KCG) on Wednesday has hammered another nail into the coffin of investor confidence. European Central Bank (ECB) President Mario Draghi is constantly trying to talk up the eurozone and drawing up plans for outright bond purchases to prop up failing financial regimes on the continent. The Fed decided not to throw the market a QE3 bone at this month's meeting. Earnings season can be described with a single phrase, "light on revenues." Yet the stock market continues to hang in there and is less than 3% off the highs of the past year.
Coming into June, it looked like the market might finally take a turn for the worse. It fell to about 10% below the highs, the level where I start to pay attention to the broader market in my bargain searching. It stayed at that level for about as long as it takes to have a cup of coffee and then it climbed right back up to near the highs. Led by double-digit percentage increases in many of the beaten-down oil names and some quickly recovering long shots such as Sprint (S), the market has once again down what was the least expected by most investors. While I enjoy seeing some of my holdings, including Hess (HES), Sprint and Tesoro (TSO) on the top of the monthly performance lists, I am far more interested in what is happening on the other end of the scale....483 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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