Not a chance. We took a long break on monas madmarket. Apologies to my readers who are few and far between still loyally following my tips. Fed spoke and fed cut on December 11 and the market was unhappy and dissatisfied. They cut rate by 25 basis though the market was expecting 50 basis. The statement did not say anything about future rate cuts. So its going to be a down market until the January meeting. Its as simple as that. And for us its time to buy on these deadly dips. Last week when the housing and finance stocks broke out - I did manage to sell DHI at 14.7 and KBH at 25 for a good profit. Citi sold again at 35. Bought some Citi at 31 -unbelievable- nothings changed and we got a good buying opportunity. Am adding Bank of America at 41- looks like the sky is falling... thats when we buy. COH and TGT on the retail side look good. Recession is priced into retail... COH at 33 and TGT at 51 are good for trades. EBAY -the online auctioneer -looks good at 32. Wow this market is a trader paradise.
Maybe the market rallied too far too fast- and so the decline is furious as well. We will watch for DOW 13000 once more- it will hold and we are off again for the rest-of-the- year-end-rally. The markets world over are falling freely too- Indian sensex fell 700 + points the 2nd worst decline- nothin to do with fudnamentals- just went up too fast - once it corrects- 10% it will be off to a new start- again. Got to like the volatility but also got to be brave and hang in there. Thank God for the selling we do so we are ready to buy when opportunities like this come by.
Stay tuned and nibble at financials is my word for today. Citi at 31 and BAC at 41-42 to start with and FREDDIE MAC- at 31 are bargains in my view- ! I also like LOW at 22 - for a longer term- sure target of 30... and shorter term 25 is easy once the market settles down to a better trading range. Wait for the DOW to hold support at 13000 and S& P around 1400... NASDAQ is ready to go from here 2570 or so... ! Whats to not buy- recession is priced in too....
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