What The Market Wants: Jackson Hole Won't Be The Right Time And Place

|
Includes: CHMT, SYMC, TXI, UAL
by: David Brown

All the right people will be at Jackson Hole late this week conversing about economic stimuli. Chairman Bernanke will speak Friday, and Mr. Draghi will be on a panel Saturday morning. But if I were a betting man, and I am, I would bet against any major announcements at the conference. Most feel that Bernanke will await the various economic releases in September before making a final decision, and Mr. Draghi will likely return to Europe and cogitate with his European counterparts before reaching a decision. This week, rumors about capping the sovereign rates with some assistance from the ECB have been circulating. But as we all know by now, rumor and action are two very different animals.

After eight weeks of showing patience and very slowly accumulating bargain stocks, the market decided enough was enough and sold-off about -0.50% (S&P 500), and even more if your lens has been limited to small caps.

The economic news was decent most of the week, particularly Durable Goods last Friday and New Home Sales last Thursday. This week will be busier with Consumer Confidence tomorrow; Second Quarter GDP (first revision) is on Wednesday; Initial Jobless Claims and Personal Income are both on Thursday. The week ends with Chicago PMI, Michigan Sentiment, and Factory Orders on Friday. There should be a lot for the folks at Jackson Hole to think about.

As for sectors, Financials, Healthcare, and Technology look like the best bets. However, Financials could still have skeletons hidden in the closet; it's probably safer to stick with Healthcare and Technology.

It's likely going to be an even slower week for the market as the summer winds down ahead of Labor Day weekend.

Here are the market stats.

4 Stock Ideas for this Market

This week, I used the Insider Buying preset search in MyStockFinder. This search looks for stocks with significant insider buying activity in the last month. It's helpful in finding new investing opportunities, especially when GARP prospects have been exhausted. Recent insider buying can precede a stock's move upward. Here are four you may find interesting:

  • United Continental Holdings, Inc. (NYSE:UAL) - Industrials
  • Symantec Corporation (NASDAQ:SYMC) - Technology
  • Chemtura Corporation (NYSE:CHMT) - Basic Materials
  • Texas Industries, Inc. (NYSE:TXI) - Basic Materials

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.