Brace yourselves I shall say as the FED chair braces itself to go ahead and cut rates by 50 basis points this afternoon. If they dont the markets will tank here. And then the world over and rather than not cut now and then cut tomorrow when we see collapses in the markets- he will do as desired by the markets. Its like a spoilt child these days -getting what it wants- or it will CRY. Never mind I am not ruling out a 25 basis instead of a 50 basis cut as BERNY is bold to say the least.
WE made some stellar gains last week. The dry goods sector- DRYS and PRGN are on fire and the bottom seems far. We sold some DRYS from 50 to 68 is good for me. And am holding onto PRGN- at 14- Its 18 today but the downside is not much. These stocks as I mentioned in my blog last week- were too beaten up and even a depression was priced in. We like to watch out when the beating is overdone and take opportunities to enhance our gains.
One more beaten up stock yesterday was VM Ware- the virtualisation play- spun off from EMC. It beat expectations on the earnings front but was shy by 5 million bucks on the revenue side. The stock got slaughtered, mutilated, abused... down to 55- from 85 in a day after having suffered a decline from a high of 125 or so already. I bought some today- at 54. Downside is 50- and its in a growth sector I like. This one I am excited about. AM hoping for the momentum to re-enter this one once technology starts recovering- very soon is my guess.
There is too much negativity- in the markets- if stocks sell off big time after the fed cuts- I am a buyer - there is no catalyst near term for a sell off other than those that are already discounted by the market.
A new stock pick= JEC- an infrastructure play- solid earnings and upped guidance. The stock has drifted down from 100 to about 73-74 today. I will buy some right away at 73.5 today and the rest if it goes down in a big selloff.
SIRF is down to 15- on no news. Maybe they expect a bad quarter- to my mind any bad news is priced into this one. The GPS chip business is to my mind a growing business- GRMN is down due to competition from cellphone makers that are incorporating GPS in their phones. On no news I think this one is a strong screaming buy at 15. We are in at 18 and now at 15! The last time I screamed to buy around 16- it bottomed and turned around to go as high at 30. We made good money along that move- and its time to pull the trigger again.
Thats it for now... get ready for the fed announcement- I shall say lets get them out of the way and rally.
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