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| | | Why a Big Selloff in Retail Stocks Could Be Coming
Black Friday is a mere weeks away and already there are signs brewing that this holiday season could be a tough one for retail stocks. In fact, based on recent events, it is very possible that a wholesale selloff in retail stocks could be in the offing.
Yesterday, the CEO of LeapFrog Enterprises (NYSE - LF) received a lot of grief in conjunction with the big drop in his company's stock. LeapFrog said 2013 revenue and profitability would be impacted by the current retail environment and the fact that there are six fewer shopping days this year between Thanksgiving and Christmas.
On the surface it appears as if placing blame on fewer high-impact shopping days is a bogus excuse, since management has been aware of the calendar for some time. Still, we would not be surprised to see other companies follow suit. If this happens, batten down the hatches because it could get ugly. Here's why.
To read more click here >> or visit http://www.thestockjunction.com
How to Pick Stocks in a Sideways Market
We are at a typical crossroads in the stock market where the push-pull between bulls and bears has resulted in a fairly sideways market in recent days. Are we due for a protracted selloff after the recent rise or will the market forge ahead during this, the best-performing season of the year? Yes, stocks will move higher but prior to that we could be mired in the current, short-term sideways scenario.
One of the best approaches to finding winning stocks in this environment is to follow the money. Even if the overall market is not doing much of anything, there will be certain sectors that are under accumulation. Still, this does not necessarily mean that you should chase the best-performing stock in the sector or the stock that has the strongest gains in recent days. For example, if solar stocks are under accumulation (as they have been), some of the best ways to play the rotation into the segment is to buy shares of companies that are leaders in niche segments of the industry or just under the radar screen.
Moreover, it should easy to understand why the given space is moving and adjust your strategy accordingly within the group of stocks in the segment. Gravitate toward those stocks that expect to or are currently earning money or with stronger financials -- rather than to high flyers whose prospects may be a bit more suspect and are moving only because a rising tide lifts all boats. You will typically find less downside risk and greater upside potential in this fashion. Since it is a sideways market, you are trying to hit singles and doubles, not home runs. Swing for the fences and you are more likely to strike out.
To read more click here >> or visit http://www.thestockjunction.com
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