Pick of the Week for Week 33: Still Cash, but anticipate the upcoming earnings reports...

The low volume and possible announcement of QE tapering (although I think Bernanke will pass the burden to decide on his successor) makes me hesitate to buy new positions. The volatility is also  a hindrance to me this week, since I know I won't have time to watch price action (busy with day job).

But, sans QE tapering announcement, the volatility can offer you a good range-trading opportunity that Ive mentioned in previous post. These are good candidates for range-trading: 

1) better to bet on companies nearing earnings announcement. If you believe that MEG (announcing this week), for example, will disclose more than +20% increase in bottom-line, year-on-year, then bet.    

2) CPG seems to have strong support at 1.2; although I dont like this company (and I dont trust its top managers), I think price at 1.2 has good reward/risk opportunity. Personally, I will not enter though. 

3) if SM reaches 810, I think it's good to purchase already. If it continues to slide down, need to add at price when P/E will breach 20. 

4) MBT also still at a low price. This may  go up big, suddenly, one day this week, but banks in general are still weak (study and get a feel further before establishing a positionin MBT or any bank).

5) GERI is also exhibiting some thick bid side, with strong foreign buying. Are these funds positioning early for a surge up?
6) MER is also probable to increase this week. If it fails to surge up,  there's about +1% margin of safety offered by upcoming dividends. (In case price goes down, take the dividend as a consideration/cushion before cutting losses.)

But again, Cash is still the best position during Ghost month. Only if you have time,. anticipate the earnings announcements and give special attention to toward MEG and MER, then, probably enter if 1) price action or 2) earnings report tells you to. And do not forget the guideposts we've posted regarding range trading. (One is: do not aim for too much profit at this environment).

It could also be good to consider buying bond-based UITF's (I added in mine), and hold it for, say, 1.5 months, just in time for equities to go up again (or "hoping to go up" in September)  BPI has an bond index-based uitf with small mgt fee and no holding period.