CSCO Disappoints

Today being Wednesday, you might think that we would have a lot to say.  Instead, the market has turned fairly dull again and there is little to talk about.  In terms of news, GM said it would restate earnings for 2001 and maybe more.  GM’s price decided to drop to the lowest level since 1992.  We’re certain that Kerkorian is not that happy about the whole GM idea.  You may recall, his comments about taking a large stake in the company pushed the price up momentarily to 31.50 from a low of 25.48 about a week before. The price has slid almost daily since then to today’s closing price of 24.63.

CSCO announced earnings tonight.  The earnings news wasn’t bad but the guidance for the next quarter’s revenue was less than the market wanted.  The stock initially liked the numbers and rallied above 18 but by the end of the evening session the stock dropped down to 17.40.  

Tomorrow, we hear from DELL who issued a warning last week.  This stock has had a rough go of it since last quarter’s earnings release.  The stock was trading around 40 back before then and tonight it closed at 29.  This is a rather large drop in a “bull” market run.  DELL did not participate in the October rally that moved into November.  

Precious metals had some luster today as gold moved up about $6.50 and the HUI was mostly in line with that up 7.20.  It was a nice day in the complex but we are maintaining a stay away attitude for now as we wait for better prices in the mining shares.  

Our attitude for the stock market is that we have seen the run that we are going to see.  We have thought that the excitement of last week would turn into a steady market so the bullishness can be felt by all comers.  People like to buy in this type of market, one that has moved up and is basking in the sun.  We usually think this is a good time to Sell, not to enjoy the scenery and buy.  The move might be followed up by another strong move up but I doubt that is going to happen.  More likely the market will continue its dull trading here for another day or two and then start heading down into the end of the month.  The bulls are tired, as well as fat and sassy right now.  

Dow Industrials:  10,546.21  +6.49  (another powerful up day)
RYVNX:  19.97
TLT:  88.36
BGEIX:  12.74  (time to start watching this one again)