Market Beating Foresight: Fears Drive Selling Pressure As Volatility Sky Rockets!

The stock market fell again last week with YTD performance dropping to -4.4%. Investor fear over world economic troubles and the US employment situation intensified selling pressures as volatility skyrocketed! Trading on Thursday and Friday exemplified that volatility as changes up and down on the VIX index were as great as we have seen in many months. What are investors to do with fear and panic so prevalent? We plan to sit tight, now is not the time to be selling. The economic fundamentals are clearly starting to improve as corporate earnings have been overwhelmingly positive, GDP is showing growth, manufacturing and productivity indexes are improving, and consumer confidence has been rising. Yes, unemployment is still high and that will remain so for quite some time. As we have said before, unemployment is a lagging indicator that will not show significant improvement until the economy is well on the path to recovery. Fundamentally, the economy is in recovery and eventually the current market fears will subside and volatility will decrease. Just sit tight and buy when there are extreme dips during the trading week.

Momentum And Value Screen: Hot Stocks To Buy

What Stock Tips do we have? VSE Corp (VSEC, Business Services), American Italian Pasta (AIPC, Food Processing), Ezcorp (EZPW, Consumer Financial Services), Delta Apparel (DLA, Apparel/Accessories), Lihua International (LIWA, Misc. Fabricated Products), and Amerisource Bergen Corp (ABC, Biotechnology & Drugs) are the stocks currently on our buy list. Last week we took a bullish position on Ezcorp by buying a call option and at the same time selling a put option to offset our entry cost. All in all, Ezcorp held up pretty well in the meltdown last week and we expect the stock to continue moving upward. We added Amerisource during the week as soon as it hit our stock screen. Amerisource fundamentals are very strong and now, is a great time to buy this quality company. American Italian Pasta announced excellent earnings last week and the stock promptly moved up 10%. In our view the stock is still attractive following this rise, but patient investors may want to wait a few days to make sure the stock holds these new highs. We dropped International Power from our watch list as the stock dropped significantly last week. The concerns over the strength of world economies helped contribute to company woes. We made add International Power to our watch list again, but right now, just do not see the company as worth the additional risk. As for the market, volatility increased sharply last week, despite further signs that the economy has regained its footing and is starting to show improvement. We think now is a good time to look for buying opportunities, particularly following those times when the market has moved sharply down. Frankly, we think the market got oversold last week, particularly on Thursday and Friday, although there was a recovery in the last hour of weekly trading. When volatility rises sharply, that presents excellent buying opportunities. Our strategy is to identify the stocks we want to buy, and then jump in when the overall market falls and drives the stock price down. Now is the time to take the contrarian view and buy on the dips, instead of following the majority of investors that now are just selling the news.

Remember, you can access daily updates on Hot Stocks to Buy directly from our web site At: http://www.marketbeatingstocks.com