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I'm not saying this rally is for real...

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July 14, 2010 – Comments (2) | RELATED TICKERS: MED , HOT

I just find it interesting that Media is HOT portfolio was getting killed during the months of May and June. During these 2 months, even when the market would score 2-3% daily gain, Media stocks would underperform. No significant up moves whatsoever. I didn't know how to explain it...

If you ever read a Media is HOT post in the past, you know that this portfolio of 13 media stocks would make incredible daily jumps: Market goes up 2%, Media is Hot stocks jump 5%. Market jumps 2.5%, Media is Hot stocks jump 7%... But not during the months of May and June...

However, yesterday..., Yesterday it was a different story. It was a story we got used to expect from media stocks: The market goes up 1.5%, and the Media is HOT stocks go up 6%. Now, that's more like it.

SBSA was up 13%, SSP 12%, LEE 10%, MNI 9%, GTN 8%, JRN 8%, SBGI 7%, MEG 7%, BLC 7%,...

And just so you know, every single stock from this 13-media-stocks portfolio is still having a positive return, and it's still nicely outperforming S&P 500 (whose return is +5% since Oct. of 2009 when Media is HOT portfolio was first introduced):

EMMS is up 129%, SBSA is up 100%, SBGI is up 88%, MNI 60%, ETM 46%, GTN 31%,.. 

Now, could yesterday's 6% jump mean the new rally has just started and we need to get used to weekly Media is HOT posts (just like what we had from January to April of 2010)?

I have no idea, and I'm not willing to make any predictions...

2 Comments – Post Your Own

#1) On July 14, 2010 at 10:47 AM, Griffin416 (99.98) wrote:

Well, today so far is a slightly down day, but those media stocks are down a lot more than the market. It looks like yesterday might have been a one day event.

For the very short term, the market is overbought with bearish technicals, lower highs, lower lows with a death cross. The market hit the SPY 110 resistance and stalled. It looks like we are going down.

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#2) On July 14, 2010 at 12:57 PM, dragonLZ (99.33) wrote:

It looks like yesterday might have been a one day event.

Griffin416, I disagree. Yes, Media stocks are underperforming today, but nothing serious (as of 12:45):

MNI, the worst performer, is down 4.5%, EMMS down 3.5%, JRN and SSP down 2%.

All the other ones are slightly negative or slightly positive today (with LEE, CMLS, and SBSA being up 2%).

I'd say nothing to be concerned about. We'll see what happens next time we have a significant up day for the market...

It looks like we are going down.

It's possible, but I still think this is just a (severe) bull market correction we are experiencing.

Either way, Good Luck! :) 

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