The market got what it pretty much wanted. A 25 basis point cut in interest rates. There was a thought in my mind... market melt-down.... as housing and finance stocks will get nervous again. But CNBC et al were talking melt up. Some respected person said we are heading for a stampede into the year end= big rally??? Well we began with a stampede selling is all I know for now.
The panic is missing. So I am a buyer on pullbacks. Citigroup is trading under 40... -38 to be precise. IT has a 5 +yield that makes it attractive. But the rumor is that CITI may cut its dividend ... so no, until that one settles down am not a buyer. But I did buy Morgan Stanley at 62 and change... for a quick trade. We are still holding EBAY and BRCM (newly added on Monday at 32.2) and CSCO and AKAM. I am adding GLW (Corning) to my portfolio. It got beat after okay earnings...from 27 to under 24. Its introducing bendable fiber- an innovation that telcos have been lookin for- at 23.8 am abuyer today.
As the day progresses we may get some panic selling... and buyers come back in as they realize wall street is having a clearance sale again. Its a traders market - and tremendous opportunities present themselves if we are alert and watching. Between today and tomorrow as the employment numbers for October are announced- its time to put the cash to use.
Bargains on my list are TGT under 60 looks good- 58 and change is my trigger price. GLW (Corning) under 24 is a safe buy.
All in all todays market crash- DOW down 240 pts, NASDAQ down 35, S&P down 7 ... will not last. Watch for bargain prices and pull the trigger. Next week we start the climb to new highs... as earnings most of them are out of the way, FED is out of the way, and job numbers are out of the way. If we get a negative jobs number all bets are off obviously...
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