Tuesday, September 06, 2011

The Ongoing Bear Market May Find Support Soon

Alright, we are piling up paper losses and it seems like there is no end to this downward spiral.
Looking at the S&P500 chart, i see a hint of some near term support. Should the S&P500 index close at or above 1120 within the next two weeks, I would expect this point to be the bottom and we could see a turn around of the markets.
Look for stocks in the heavy construction sector to be the leaders in this cycle. Some of these candidates are: Granite Construction Inc. (GVA 18.20), Terex Corp. (TEX 14.32), Foster Wheeler (FWLT 21.40) and KBR Inc. (KBR 27.26) to name a few.
Extreme caution should be taken before going "all in" at this time, we must be very selective in our choices.

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