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Wall Street Strategies has been providing independent stock market research since 1991 to individual, retail and institutional clients through a balanced approach to investing and trading. Charles Payne, our founder and chief analyst, is routinely sought after for his stock market, political,... More
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  • Merger Mania Not Enough, Yet 0 comments
    Aug 23, 2010 4:45 PM

    The market came out of the gate fast, but has struggled to stay in positive territory. Merger mania would lift spirits, and the bidding war for 3Par (a company that has lost money the last two years) is the kind of deal that generates buzz. In some ways, too, it underscores flaws. I think Hewlett Packard (NYSE:HPQ) and Dell (NASDAQ:DELL) face serious competition from abroad. Still, one of my themes is that the market is undervalued, which makes these deals that much more attractive.

    As it becomes cooler in New York, and summer winds down, anxiety will increase as everyone begins to brace for seasonal action like weak Septembers and Octobers. Toss in the notion of things like the Hindenburg Event spooking investors, and it's easy to see why the market is spinning its wheels. Of course, bracing for the worst could be good and bad. It's not great because any subpar news could snowball into an overreaction. By the same token, lowered hurdles are easier to clear.

    The DJIA is forming a reverse head and shoulders formation, generally a bullish formation, and all it needs now is bullish news.

    Disclosure: none
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