The market has shown modest strength lately. Even with today's slight sell-off, the Dow has held above 9000, with advancing issues ahead of those declining by a 15 to 14 ratio. With that said, this is still a choppy market, and will remain so until, and if, the earnings parade starting next Friday gives the market a good reason to go up.

You know you have to do your homework regarding what you should buy next, and after you're satisfied on the fundamentals, you must assess your buy candidate's performance as compared to its competitors', its larger industry group, and the market in general. In other words, determine its relative strength.

I guess I've been around too long to get too excited about buying the high-caps at their lofty levels, with the exception of Pfizer. They'll report their second quarter earnings around Monday, July 14, so if you have any inclination to buy some, you will want to get in by next week. Pfizer hit its high on April 21, when it opened at 120 and made a high of 121 3/4 before closing at 116 3/16 up 2 13/16. It has since drifted off to the present, closing today at 107 ½, up 5/16.

Today's price gives you a better than 10% discount from the high, and while you would still be paying plenty, it would be for a stock with a great product pipeline and with a dynamite drug in Viagra. If I were a betting man, and you know that's the last thing a stock market hound is, I would bet that the street will be positively surprised by the earnings contribution of Viagra in its first quarter on the market. I would expect the stock to gain strength at that time, and after they report their third quarter results in October, I wouldn't be surprised if Pfizer really took off. Stay tuned.

The Market Pro - July 2, 1998