This week as I said was a downer- the rally from the lows occured too fast- people including us at monas blog- took profits. AKAM from 26 to 33- sold them today- though I think holding on will be profitable, the markets do give us a chance to buy lower. CTSH in at 26- sold at 32 this morning- up 4 bucks on good earnings- which stock is up after earnings? Had to sell even though this one looks good long term. VMW from 54 to 61- am going to hold on as this one was badly beaten down- and is still wobbling trying to find a foothold- somewhere around 65-68 we may sell them. We got a chance to buy VLO again around 55 and change yesterday- was a windfall buy- as its already close to 59. Will easily trade upto low 60s next week. I also like MRO- marathon oil. VLO and MRO are refiners. They are down alongwith the market and also as crude oil is up a lot in the last couple of months that does not bode too well for refiners as their raw material cost -crude oil eats into margins. To my mind oil stabilizes here or may even fall a bit amid recession fears- and these are two low p/e stocks badly beaten down -worth buyin for a trade. For longer term as well- biggest bottleneck in the oil industry being refining capacity- these companies will do well until more capacity comes by.
Citigroup- I was waiting for a pullback to 26- that happened today- am buying at 25.75- for a trade upto 29 - once the financial messes settle down once again. Today financials are down again on fears of no bailout plan for bond insurers. Once we get clarity on that front- financials go up again. Tis great to catch these swing trades if you are on the right side of them.
Homebuilders are down too- its profit taking- as they had a huge runup in january. I am buying DHI at 13.75- ITs run up from 11 to 17 and change- is down to 13.75 today- will get a trade out of that one.
EMC has no reason to be trading at 15 and change- this one got pulled down with the VMW earnings- ! VMW recovered from 55 to 61- but emc is trading even lower from 16 where it was on the day VMW reported earnings. EMC itself reported good numbers- and looks like its bottoming out at 15. We are in at 15.20!
Those are a lot of trades from mona's market- am lookin for a recovery in the markets next week- if not before close this evening. Dont fret the volatility- take heed and play the game. :)
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