Bulls Battle Bears

Tuesday and Wednesday of this week have been ugly for investors. With bad news, more requests for bailouts and pending collapse of the American financial system probably on the horizon, its probably only wishful thinking to hope for a rally Thursday.

Here is a realistic prediction of a bear market rally. I totally agree with this perspective that there is more negative to come with probably a new low to set up. However, like I have said before when talking about a “dead cat bounce”, we might see a spike before further fall in the market.

Then end of the video did talk about Obama and his foreclosure issue and with that, it was announced that his stimulus will help from 7-9million home owners in these tough times to remain in their homes rather than face being evicted. This also means that over sold stocks like (FRE) and (FNM) might turn out to me excellent profit plays on upcoming spikes. Why? Well initially these stocks fell because the previous government was going to trim both companies portfolios and take the loss. Well now, Obama is saying that he is going to shore up both companies with a larger portfolio. I will be playing both stocks daily. Link.

Here is the market summary for Wednesday that you should take into consideration when playing on Thursday:Here is some news for Thursday:

(CBS) has cut its dividend which really is not going to fair well for stock holders who are selling the stock. I remember looking at this stock when it was $12 and almost getting into it. Thankfully I realized that there were many downside potentials that outweighed the stock and look now, its $5.13. Link. Always look at the big picture when getting into a stock. When certain prices might tempt you as being “cheap” take a step back and consider what other things could pull the price down. That is what I did for CBS stock back then and it totally saved my butt from a loss! Right now, the stock might be a little too depressed in price and I will strongly be looking at it to add to my portfolio. This could rise easily to $7 yielding a nice return in the short term.

(WMT) was up again today. I know I have pressed the ownership of this stock many times and its a keeper in my portfolio. I am up considerably which is all that matters at the end. Recession is when people look to save money and this store knows how to cut prices for consumers will still maintaining profits.

Another stock that I talked about yesterday was up again. (AUY) is a gold stock that I said was value when it was back at $6 and lower and its still chugging its way up. Its a matter of days before it touches $10 again.

Before I go, I just wanted to post another video. I really got a laugh at it since it was about MBA grads. According to this one, we are all narcissists. It made me laugh. This person that is speaking is full of smoke if you know what I mean but you might like watching it.

Hope you all the best in making money in this dismal week!

Happy Investing!

Aman, MBA