Buying underperforming stocks at year's end

[newestmember]

The market is getting pretty overbought here at the end of December, but I'm seeing several stocks that have sold off a little, with nice Q over Q growth, and rosy forecasts.... but I'm hesitant to purchase them, even at these more attractive prices, because the market is more than overbought.

What's everyone else seeing/thinking here as the market closes 2003?

 

[ig0r]

Quote from newestmember:

The market is getting pretty overbought here at the end of December, but I'm seeing several stocks that have sold off a little, with nice Q over Q growth, and rosy forecasts.... but I'm hesitant to purchase them, even at these more attractive prices, because the market is more than overbought.

What's everyone else seeing/thinking here as the market closes 2003?

Small correction of the most recent rally and then back up for a few months, probably until the fall

 

[BlueHorseshoe]

Underperformers should rally strong in January, even if the overall market pulls back. It is called the January effect and it is quite consistent. Here is a good hotlist to get started:

T
EK
LAB
OCA
PSMT
Q
SGP
THC

 

[range]

I am playing the anticipated bounce of underperforming stocks into next week (including some on your list, BlueHorseshoe). If there is no meaningful terrorism over New Year's, then Friday could be a big up day, driven by a relief rally and by the first day of the quarter/year phenomenom. Nevertheless, I plan on hedging away most of the market risk over New Year's by shorting SPYs and/or QQQs from late today until early Friday.