Where Are We Going From Here?

It looks like a dropped the SCUR in time as they dropped sharply after their earnings release. But what about my purchase of WIRE? WIRE is down over a dollar from where I bought it. Had I been a day trader, I would have been in and out several times. But this blog and my account isn’t really about day trading. It’s about spotting opportunities; whether that be grabbing a stock for a bounce or spotting an undervalued stock. I consider WIRE to be the latter. It’s a strong and solid company that is growing and well managed. Their P/E ratio is now under 5.0 and they tripled their earnings over last years quarter. All these factors scream buy to me. Since I’m not trying to time the market, I decided to buy at what I saw was a good price. So the stock dropped another dollar but it seems to have stabilized.

CLRK also dropped significantly but largely to the general market weakness of the last few days and an analyst downgrade. Since CLRK is a long term buy and readers of this Blog know what I think of analysts, I’m not at all worried about CLRK.

This morning the unemployment reports in both Canada and the US showed that unemployment rates declined. This can be seen as a good news / bad news story. The good news is that the economy may not be slowing as fast as some people feared. The bad news is that if the economy is not slowing, the Fed may be looking to raise rates. Right now I don’t think the market really has a good grasp on what to make of these reports. But since it is a Friday, my bet is that the markets will finish slightly lower. Maybe me saying that is a good thing because we know what tends to happen to my predictions.