In my very first post I warned you. Hey, consumer, you dare lose that `confidence' the market depends on you. Case in point, todays market action. Down 150 on the DOW just when we were happily soaring toward the mid 13000 level... . Who is to blame. Did anything change? Well, your confidence dropped to 105 from 113 whatever. They take a survey of 5000 some households and then put out this number that speaks for the entire US family. Beats me sometimes. I have a suggestion. They should make sure these consumers are also consumers of stocks. If they be heavily invested, they will certainly keep up the confidence to prevent such downturns like todays market action. DOWN 156 as we speak to 13165 or so...!
To my mind this is another trading opportunity. I love BRCM at 32.30 and EBAY at 33.2. INFY at 45 and TTM at 16.
I spoke of TTM the other day- Tata Motors at 16 today is a good trade as well as a long term investment. Its an Indian car maker- thats aiming for the Ford's jaguar brand... for those who dont know TATAs are one of the oldest business houses in India founded in 1945. It has a price/sales ratio of less than 1, a forward P.E ratio of 10.2 or so... which fits my parameters for BUY- Its based in INDIA- consumer confidence in USA should not make the stock move down 30 cents - ! Its near its 52 week low- what else, lets see, the moving averages are around 17.4, 50-day, 200-day et al. so once it moves above those it has the potential to take leave of the teens... end of this year or as soon as the market messes settle down...
Todays worst case scenario DOW will be down 220 at some point- 13100 and then jump up as bargain hunters save the day. If we close at the worst levels of the day, we drift lower tomorrow till we are about 13000... and this week we punch the fear out, the weakness out and every news- sub prime, consumer confidence, housing data, all is discounted... and next week after labor day, market is ready for some climbing action again. Will the Fed cut rates in September... 100% expectations that it will. If it does not we re test 12845...and up from there... Eventually up, thats what corrections are made of. Pain, pain and more pain. Till you decide to throw in the towel... and go all cash. Thats when corrections are over and the market steadily goes up again... but for it to happen some of us have to go all cash. The elephant then stops watching and `pulls the so-called trigger' BUY BUY BUY...
When my son asks me to buy BASKIN ROBINS stock I know he is on the money. He knows where the consumers' money is going! He also recommends GARMIN as it shows us the way when we are lost. Well, will he be laughing all the way to the bank, one day? I say all power to him and the sub-10 year olds who should be learning about money already.
Stay tuned...
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Wow..down 220. Just as I said in my blog earlier. Time to brag? NO, no, time to buy, silly people. The DOW in panic just had to go back to where it started the upward move from... 13000 and some. Plain and simple sentiment. The more you watch, like an elephant, the more you digest. I love being the elephant and not the bull or bear. I pull the trigger right now at 3.37 pm. for a few trades... JOYG 44.7 and PTEN at 20.9 fabulous.
BUY LOW and SELL HIGH and thats the name of the trade...
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