Does the Market Have Acrophobia?

By Kyle Metivier - February 3, 2012 | Tickers: AKAM, BIDU | 0 Comments

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Progress Report: Wells Fargo mentioned 1/4/12 with a price of $28.56, currently trading at $30.50-levels (intraday, 2/3). Baidu (NASDAQ: BIDU), mentioned 1/10/12 with a price of $126.88, currently trading at $134.70-levels (intraday, 2/3). Just thought I’d mention a couple of mildly decent recommendations. For now, anyway.

Futures higher. Markets higher. Nobody cares about Europe anymore. Jobs up. Unemployment down. Euphoria takes hold as we all go up, up, up. I have a slight uneasiness with heights. It’s not a fear, in the strictest definition of that word, because I am not afraid of anything. I’m not proclaiming to be completely awesome, but it’s safe to say if you find yourself in a scrape, you would be better off with me on your side. So up we go, everything is taking off just like we had hoped (“Don’t Trade on Hope”).

Let’s take it easy on the Kool-Aid, I beg you. You know that guy at the office Christmas party that gets far too inebriated, far too quickly, ultimately waking up with all sorts of clever sentiments and juvenile images written in Sharpie all over his face? Don’t be that guy. Don’t trade like that guy.

Listen, I love a good healthy run. But there are times when there is absolutely no logical reason for anything to swing in the manner it does, in either direction. I’m not saying this is one of those times, but in the timely words of someone I respect without fault, Josh Brown (@ReformedBroker), “chill the (expletive), out please.”

Nobody ever gets hurt taking some profits off the top on the way up. Nobody. And with several companies scheduled to drop some earnings on us soon, the sentiment could change very quickly, and I don’t want you jumping in at price levels that could smack you in the face like those stupid boomerangs (has Australia ever won a war?).

So I got 99 problems and my portfolio ain’t one. Don’t follow me into the labyrinth of my investment portfolio that is almost its own mutual fund, now. Keep your emotions in check when you go about your investing. With that said, let’s take a peek into the earnings crystal ball for this month.

I’ve seen my fair share (get it?), of write-ups regarding Akamai Technologies, Inc. (NASDAQ: AKAM), so for my taste, it’s a little tired. The company reports earnings Wednesday, February 8^th and has enjoyed a relatively decent little run since December of last year. Akamai works in that Internet space to improve content and application delivery. So as you stream your favorite YouTube video and it times-out on you, well, there you go. I want you newbies to be careful with this one, and not just because I own a competitor from Arizona in this space (homework). With today’s delightful market response to relatively happy talk, just stay nimble. I happen to think Akamai is a fine investment, but pay close attention if a trade is being played here.

I have talked far too much about USG, but if you want to meet me on their earnings call, it’s Monday, February 6^th. Give me a shout-out.

I recently read an article regarding Baidu, and it deserves some consideration, because it brings up some interesting points (not “Pulp Fiction” interesting, please temper your expectations). Baidu reports earnings at some point this month, allegedly. They have been bouncing dates around like toddlers on Red Bull, the last of which I saw was February 16^th, but now all I am getting is “N/A”. So in terms of level of frustration, Baidu is definitely a “buy”, but I will continue to sit on my stalking stoop until I get a better feeling. The company has reported 10 straight quarterly earnings beats and I’m curious to see if they can sustain that torrid pace. This stock has swings that rival any teenager’s moods, so I want to flirt with this one before I ask it out. Another earnings beat and we could possibly kiss these prices goodbye, because their focus on the Android market will keep it sizzling and this one could soar. Don’t you hate that: “could”?

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