Steroid Monsters Good

Normally, words like steroids and monsters conjure up negativity, even nightmares for squeamish little boys and girls like us. But really, in the market, the big-cap growth stocks have flourished for long-term holders. For short-term swing traders, they have been glorious. Apple. RIMM. Google.


















Today, with the market returning to a neutral state, at least in the NAS, I'm looking for a bargain. China Mobile is at 99.15 in after hours, just below its 10-day simple moving average. CHL is well off its highs of the week, a steroid monster with the dominant position in China. Because of the Chinese penchant for internet surfing via cellphone rather than the PC, growth is still going to be huge for China Mobile. The Co is only beginning to tap into the enormous online gaming market, as well. Those brothers in China love their online games, and the sisters absolutely depend on text messaging.


















Another complex, intriguing temptor is lululemon athletica, which is below 47 right now. The stock has been a trader's wet dream, really, spiking from 40 to 60 in almost no time because of raised guidance. Of course, anything that ascends too quickly comes crashing down just as quickly, if not faster. That's the case for LULU, which has now traded down in seven of the last nine sessions. Today's dip to 46.75 (AH) came on larger volume — not a positive buy sign. Then again, if the market truly is oversold, this is a good place to start a small position. Those who got their 50% gain and sold are wiser and wealthier for it.

I love this Co, but it has to be a trading vehicle, at least with a half-position. It'll probably stay in that category until after Q3 earnings are out. If the Co meets expections — the ones that it guided to last month before the huge spurt to 60 — there could be another selloff. To me, guidance is foolhardy, but the Co may have been responding from a previous dip that sent the stock from 47 to 41 in just two days.

Oh well. This is the nature of the game today for younger growth retail companies. Guide or sink. Google allowed its stock to sink from 125 to 85 in the first few months of its IPO. No guidance, no outward stress. They did all right. I'm not hoping for LULU to dip even more here. I would like to hear about an earnings announcement date, though. Early in any of the upcoming weeks rather than later — one of my few superstitious tenets about bullish-versus-bearish reports. LULU is trading below its 10- and 50-day moving averages. A clear buy signal for an established stock. LULU is too young right now for me to stamp an automatic strong buy tag on it. Risky.


















VMware is another attractive buy, even though it has run up so strongly. At 116.75 (AH), the stock is down 4.5% today, but still above its 10-day SMA (114.35). The stock hit a low of 114.55 mid-day, so this may have been the short-term bottom. I love the Co and its prospects, its dominant state. I've said this before, when I bought before earnings, and my perspective has not changed. As long as there's no negative news, it has support at this level. I'm real close to getting a few more shares of VMW right here.

The cloud above all of this thinking and guessing, of course, is the market. No Fed rate cuts on the horizon. More clouds ahead. But the true steroid monsters will plow forward, unstoppable by problems in the U.S. That's what makes CHL compelling. Bad numbers or not in the periphery, VMW will plow forward because of demand. Retail, though, can't really digest a future without stronger consumer spending and/or Fed rate cuts. That rules out more LULU, probably. I'm overweight there to begin with.


















Crocs? The stock is all over the place, currently at 47.36 (AH). Can't tell if this is a bottom, or whether it will sink more on Monday without another buyback by the Co. But I haven't sold a share.

Trade in profits when possible. That's my new mantra. But there's no profit with a buy first. Bargain shopping resumes now.