filed in My Investments on Dec.29, 2008
Well everyone, we are getting close to the end of 2009. There are a few days left to squeeze out a couple of strong trades and make some more money. Today will be no exception.
Looking at the Asian market right now, the volume levels are low as can be expected and the numbers are flat. It looks to be a typical holiday trading session but I don’t think this will carry over to North American markets tomorrow for the following reasons:
Dow Chemical (Dow) was supposed to get into a partnership with Kuwait but that was canceled today by the country. In the most basic terms, this combination was crucial for Dow and will cause the share price to fall in the morning. Dow was going to bank on this venture to offset a previous deal with another company. If you are holding Dow Chemical, watch for a price drop at the open. Personally I will let this price fall and look at the mid-day levels and probably get in for a short rally. The current price as of Friday is still 15% above the 52 week low and I can see this touch that again easily. Lets see how fast this falls.
You can read more on this here: Reuters Article
Another big story that is on Bloomberg.com is the fact that failed bank Indy Mac has been sold to a bunch of firms. This is a $11 stock that went to $0.02 and is just sitting there. Based on the terms of this private sale, there could be a sharp rise in price of the shares which a few risky day traders might try to play. Watch for an immediate pop at the open before coming down to levels set out in the sale.
More information is listed here: Indy Mac Buyout
A few other stocks that I’m watching based on price and last weeks performance will be Freddie Mac (FRE), Fannie Mae (FNM), Nortel (NT), and CPI Corp (CPY).
All above stocks have shown major swings either during the day or within a few days. So looking for a chance to get in after the stock moves in the opposite direction. For example, last week when (CPY) fell so fast in one day that it just shot up again giving people a nice profit. After resistance came into play, the shorts got in and made money coming down. Its been a good ride and I will continue to get in while I can with any of those above stocks.
Also, here is a video that has analysts talking about how the market still has further to drop.
I know that this is probably not the right time to be a passive investor, but for a person that is willing to put in a little time to do their research, the returns can be rewarding.
I will update any trades I make later today.