Really they're companies with consistent price performance, ... In other words, it's better than the S&P and consistent earnings performance.
There have been a lot of high-profile companies taking a lot of extraordinary drops. When things go south for a company, they really go south.
Every market sector has a lot of good companies in it.
As the bull market progressed, analysts became more optimistic about next year's earnings. Now, it's the extent to which companies will hit their numbers for 2004 that will make next week so important for the market.
Almost every quarter I can remember people have come up with reasons to explain away earnings gains. The truth is that earnings are doing better, and the hope is that, because earnings are improving, companies will begin to hire and spend money on technology.
A lot of traders will be circling like vultures, to find the companies that are the target of tax selling.
It's pretty clear that companies have made money and their cash positions are high and this should help the market stage an advance in November and December.
It will eventually slow the growth rate of earnings. Therefore you should own companies with low price-earnings ratios, not high price-earnings ratios.