Technology is being hammered alongwith the doomed financials and housing stocks. CSCO that we sold at 34 looks great under 29- right away buying at 28.85. The earnings were good and the slowdown that Mr. Chambers spoke of was related to the financial sector- once that clears up the rally commences. BRCM - at 30 looks too good to be true. GLW at 21.5- am averaging my cost- if you hold a stock and it goes down you either take a loss or you buy more at a lower price and bring down the average cost- so thats what I am doing with GLW.
CSCO, BRCM and GLW in tech.
About housing, did I hear our friend Berny talk about housing bottoming in the first half of 2008... in which case housing stocks become bargains- the ones that will survive. I am betting on TOL at 20.20. I am holding DHI - painful to say the least... still lingering around its 52 week low of 11.5. Will wait and watch...
We have a couple of sessions of doomsday type selling... I am afraid as the sentiment is bad out there... But all the bad news is out- and the correction in the market is discounting bad news. A glimpse of clarity or confidence... going into next year... the fact that it all does clear out once all the write downs are on paper... we should emerge in better shape...
The stocks I am buying dont have much downside... the big gainers will lose more... RIMM, AAPL, GOOG etc. that can have double digit losses as profit taking is on... so am and have stayed away from them.
Am holding onto TGT, COH and JWN ... expecting them to rebound once the market settles down.
Theres lots of action and lots of money to be made in this mad market and if you dont panic its worth the pain...
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