Filed under: Earnings reports, Good news, Apple Inc (AAPL), Texas Instruments (TXN), Technology, Earnings transcripts

So the sky isn’t falling.

Corporate earnings aren’t that bad and are surprising analysts. Oil prices are falling just as quickly as they rose. If you are a contrarian investor, you must have a big grin on your face.

Common wisdom had it that markets were going to keep dropping, that the price of crude would hit $200 a barrel, and that bank after bank would go bankrupt. But what’s happened? The opposite. Bank earnings aren’t as bad a feared, crude has fallen to under $130 and suddenly investors are a bit more optimistic.

Even when we get bad news, like earnings from Apple (NASDAQ: AAPL), Texas Instruments (NYSE: TXN) and others, the market is able to hold up. Industries that just a week ago were being left for dead suddenly came roaring back to life. For investors who like to dabble in out of favor stocks, this market is a dream come true. Battered sectors such as financials, airlines, and even autos have surged over the last week. Who would have dreamed that airline stocks would actually stage a rally? What’s interesting is that even with their recent move these sectors are all still trading significantly off their highs, meaning that potentially we have much more room to run.

Continue reading This is setting up to be a contrarian’s dream market

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This entry was posted on Tuesday, July 22nd, 2008 at 6:18 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.