ITs called a classic pull back in my language. From 13000 to 13450... and we have about a 50% pull back.... down 225 maybe today. Its down 195 -its 2.50 pm. To my mind this a classic chance for those who missed the rally from the subprime mess lows... to BUY on DIPS.
Employment Friday tomorrow brings in the employment numbers which is expected to come in at 105000 or so. Whatever the number be (just like last Friday- whatever the Fed may say) the market rallies again after digesting the numbers. The jobs may be low and blamed on the housing and mortgage gloom... and they may be high and better than the expected number and we are up and running again. WIN WIN situation tomorrow.
YHOO is showing strength. If it did not break down during the 200 point pull back today, it can only go higher on a 250 point rally tomorrow, right? EBAY is upto 35. I loved it at 33 and love it more at 35 - where would ya get a low-risk play with high returns? Right here at mona's instinctive blogspot. The target is 42- for the year end.
A contrarain play can be MNST (MONSTER WORLDWIDE) the online jobs recruiting company. ITs been beaten down too much- if the estimates are right this one has a P.E. of 18... which is more than its growth rate. I humbly pull the trigger to buy at 33.80. right now- for a pop to 40 very soon. The downside is 30... but we know its not going that-a-way.
Enjoy the pull backs. These are traders days. They dont come so fast and furious. The best part is you make the money work again and again and voilahooo you are all cash so many times. Like yesterday I was almost all cash- unloaded TSL, BRCM, some GRMN... after good gains. And today am back in TSL. and buying MNST and YHOO. There is no risk doing this because the market is behaving so well. Up 150 and then correctly down 150. See-saw... pattern... Hee-haw.... have to discover what the donkey is doing in bull and bear territory. Until then, have a happy time analyzing but do pull the triggger to buy and sell. And may you read my blogs and laugh all the way to the bank...
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2 comments:
Hi Mona,
I have been reading your posts since the beginning, sorry it took me so long to leave you a comment. You are doing a fantastic job and I wish you all the very best.
Yes, I totally agree with you, this market is a trader's treat. Extremely good for making quick and small gains (upto 50%, easy 10-20%).
It's been bullish for more than 4 yrs now, expect it to be neutral for some more time. May be now is not the right time to invest for long term.
I feel emerging markets and US companies with overseas exposure will fare better in the long run.
But by using common sense, and investing in companies like GRMN, we should be able to protect and grow our money in any market-:)
-JB
Hi Raghav,
Thanks for your comment.Really appreciate it. Will look forward to your comments. You seem to be watching the markets with a traders' eye. As you have been reading in my blog- I am a very short term trader... the US bull market is on rough roads- lets see how the year pans out.
But the story in the emerging markets- and INDIA CHINA are far from over. I agree with you. To use the pullbacks in those markets for long term investing may not be a bad idea.
THANKS for reading.
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