The Stock Market Is Tanking

This market is very volatile. It is up 2-3% one day, and down 2-4% another day. If you are not right about the direction, then it is better off not to trade at all. But one thing is certain. The direction is down. The rally is mostly dead-cat bounce. Use your next opportunity of up days to sell into the rally until the situation changes.

Looks like the traders are thinking global economic slow down around the world because of the US slows down. Regardless the cause, the bottom line is avoid buying any stocks now.

Stocks to Watch on Monday

The market opened mixed and traded down around midday. The Chinese Shanghai market is up big this morning with a massive 8% gain. Wow! Is the Chinese market back? There are still many signs of uncertainty, such as is recession coming, who will win presidency in 2008, more write downs from many corporations, and more inflation is coming?

But one thing is certain, maybe some companies valuations are low, look at (SGTL) is taken out by the Freescale. Looks like the coal related stocks, such as (FDG), (ANR), (PCX) are up in the current down market. Maybe coal is the short term answer to the energy problem for now.

Events to Watch Next Week

The stock market had a very good week after a series of down weeks in January with very good volumes. I think the market is putting a good short term bottom right now. It is maybe time to put in small portion of cash into action now. The beaten down financial and housing stocks maybe showing signs of not going down further even with more bad news. Bigger cap companies have the resources to swallow the smaller rivals, such as Microsoft (MSFT) is buying Yahoo (YHOO). Sound financial companies. Here are the news worth watching from Yahoo:

Conference/Events Calendar for the week of February 4th - 8th:
Monday: MSFT Strategic Update; JAVA Analyst Meeting; ADCT, HTCH, ARRS, IKAN, NVLS, PAR at Thomas Weisel Partners 2008 Technology Telecom Internet Conf; Banc of America Securities MBA CREF Multifamily Housing Client Event; CPF, PG at CFO.com Performance Management Analytics: How to Drive Fact-Based Strategy, Resource Management, and Operating Decisions Conf; SD, XTO at Credit Suisse Group Energy Conf...
Tuesday: STT Analyst Meeting; UAUA Analyst Meeting; Banc of America Securities MBA CREF Multifamily Housing Client Event; Credit Suisse- 2008 Financial Services Forum; DLM at Goldman Sachs Consumer/Retail Leveraged Finance Conf; DNR, HAL, CHK, CXG, HERO, STG at Credit Suisse Group Energy Conf; GR, DCO, RTN, ATRO at Cowen and Company Aerospace/Defense Conf; JAVA Analyst Meeting - Sun's Annual Analyst Summit (SAS;); MIPI: The Future of Radiopharmaceuticals: Improved Imaging and Treatment for Serious Diseases; MSFT, CHK, AMGN, SUN at American Legal Media (ALM) Legaltech-NY Conf; RHT, ACS, MSCC, MSPD, NETL, TTMI, ITRI, NSM, CSGC at Thomas Weisel Partners 2008 Technology Telecom Internet Conf; ZMH, CMED, BRL, SGEN, ALKS, ALXA at Merrill Lynch 19th Global Pharmaceutical, Biotechnology & Medical Device Conf.
Wednesday: JAVA Analyst Meeting - Sun's Annual Analyst Summit (SAS); AXP Financial Community Meeting; CTXS Analyst Day 2008; AMAG, SVNT, XNPT, ZGEN, CELG, BSX, MCK at Merrill Lynch 19th Global Pharmaceutical, Biotechnology & Medical Device Conf; APC, RIG, CPX, FE at Credit Suisse Group Energy Conf; Banc of America Securities MBA CREF Multifamily Housing Client Event; CR, AME, BEZ, CIR, FLS, ROP at Gabelli & Company, Inc. 18th Annual Pump, Valve & Motor Symposium; GS, TCB, SNV, KFN, LEH at Credit Suisse Group Financial Services Forum; IVAC, SYMC, SONS, VSEA, AVT at Thomas Weisel Partners 2008 Technology Telecom Internet Conf; LEH at IBF (International Business Forum) Nano Applications & Advanced Materials Forum; NCIT, BEAV, PCP, KTOS, NOC at Cowen and Company Aerospace/Defense Conf; SONE BAI Transpay Conference & Expo...
Thursday: Credit Suisse- Alternative InvesELY Analyst Meeting; EMR Annual Investment Community Update; PETD Analyst Meeting tment Seminar; CSCO, DELL, CS, PNY, RTN, MFE, CITI at American Legal Media (ALM) Legaltech-NY Conf; CSE at ACG Capital Connection-Atlanta Conf; DRIV, PAET, MOLX, VSH at Thomas Weisel Partners 2008 Technology Telecom Internet Conf; DVN, OXY, BRS, CAM, DVN, SWN at Credit Suisse Group Energy Conf; PRGS, BCSI, BEAS, FRE at Forrester Research Enterprise Architecture Forum; RF, JPM, SLM, ZION, MF at Credit Suisse Group Financial Services Forum; SIRT, TSCM, BKR, BMTC at Emerald Research 15th Annual Groundhog Day Investment Forum; THRX, XRAY, EW at Merrill Lynch 19th Global Pharmaceutical, Biotechnology & Medical Device Conf; WTS and RBC at Gabelli & Company 18th Annual Pump, Valve & Motor Symposium...
Friday: GLW Inverstor Meeting; SRVY Investors Meeting; STJ Analyst Meeting; PXD, PDE, NBR at Credit Suisse Group Energy Conf.

Is the Market Bottom?

The biggest news before the open today is Microsoft (MSFT) buying (YHOO). This news is basically saying that stocks are cheap. The bigger cap companies are buying smaller rivals. The negative news front is still remain, recession fear, bad housing market, sub-prime problems, inflation fear. But based on yesterday's trading pattern, it looks like the short term bottom has been reached. It maybe OK to dip a small portion right now to test the water. If we are wrong, we don't have to lose a lot in it.