Yawn... nothin spectacular. No major opportunity. We are consolidating and digesting the recent gains ere we move again- higher if the Fed cuts next week. We are sticking to the financials- Citi and Washington Mutual. Am adding some more WM at 18.30- got to time it well. Target price low 20s is good for me. Technology sector is still waiting for catalysts. Some of the valuations seem good enough to pull the trigger. We are in BRCM, NTAP, VCLK- and OVTI.
Freddie Mac made good money for us- from 31 to 35. Today got a chance to buy again at 31- very easy to buy the second time as we know when it bounces back it goes at least to 35. That makes a good trade. So we are in there. Theres no reason for it to trade down so much. Just profit taking by those who got in last week at much lower prices. This and Fannie Mae were crushed too badly in my opinion and are buys.
On the mortgage front, the word is that they are trying to bail out the unfortunate homeowners who may suffer a foreclosure- by freezin the rates on the adjustable mortgage which means that those who can afford their current mortgage rates will not have to give up their homes.
If such proposals have seriously started flowing, to my mind something will work out and its positive news. The reaction to such news I thought would be more spectacular. Homebuilders and banks are a buy in my opinion. I would say not just for a trade, for a longer term 2008 will be kinder to homebuilders. Am looking for home prices to fall further and then bargain hunters and home buyers do come in and finally buy instead of renting. Demand picks up and things start looking better- hope springs eternal in Mona's world. IN KBH at 19 and 21. Its 20.4 today. In DHI at average price of 12. Its about 12.20.
Thats it for now... employment numbers comin up this week- a low number would only prompt the fed to ease rates next week- so bad news will be good news. We will see.
Volatility is low again. We retested the August lows. Going into the end of the year, stocks look like a good place to be. So hang in there.
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2 comments:
Hey Mona,
Welcome back I'm sure I'm not the only one who missed reading your daily blogs in here. You do a great service to us all. Missed your comments as well in the WSS game as well, have a great Christmas and New Years. See ya when the new game starts on Jan 2nd. Until then.
May God Bless you and your family and wrap his arms around you all,
Jay Dub1984
Hey JayDUB,
Thank you for your wishes and reminding me that I have readers. I tend to forget. AM trying to be in touch with my blog though I am out of U.S. for now. Hope to be back for the WSS challenge- left it midway last time.
God bless!
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