Tuesday lookout:
filed in My Investments on Jan.13, 2009
I mentioned earlier that I was unable to transact on Monday and for that, I feel a little bad as money could have been made but am still glad that I managed to lounge and rest today. With probably 5 different projects and priorities going on at any given time of day, I guess it was a matter of time before I caught the bug.
24 hours have passed and I feel better. I’m not a real big medication person and I guess pharmacology in med school has convinced me that for every drug benefit, the side effects are just not worth it. And as predicted, some soup and rest has helped.
Monday was a negative day with all the markets showing red. As mentioned earlier, the main reason for the sell off is due to weak predicted earnings from almost all major companies. Many analysts are revising their estimates of how bad a company will report performance, while other companies are coming outright and warning of bad profits. I hope that the markets do not react in panic and sell off as the news officially comes out. That will only make us fall back into the original downward trends we tried to shake off in 2008.
Also as stated in my earlier post, the commodities demand seems to have declined again which signals that companies and people in general are not working or in need of things like oil, base metals etc which also caused the prices to fall.
(C) Citigroup, fell today (17%) sharply on news that is was going to sell 51% stake of its retail brokerage. Many people expected the stock to go up on the news of the sale as it would generate money. As people have had the weekend to think about this deal it seems like a one sided deal and that is why (C) dropped.
Staple goods did go up today. In a time like this these types of goods are good for a long portfolio. I am looking at the tobacco stocks as a long play. No company in specific…yet.
Jim Cramer has put out a really video on which stocks he is bullish on for anyone looking for some ideas.
Also, Bloomberg has a great clip on anyone thinking of getting into a long play on TIPS funds. TIPS are widely considered a safe stock play and here one of the funds talks about its performance. While the gains might not be as high as some might want, its a moderate play which a good upside potential which some hesitant investors might like to look into.
For Tuesday I am going to keep an eye on (NT) to see if there is a dip in price. If that happens, I might get in on another 3000 shares and aim for $1 on my exit price. Right now my current holding is up 100%.
Another few stocks will be (CPY), (FRE) – my usual plays I guess you can say. I will try to get into any quick rally that comes out for a really fast profit.
Super scam of the year so far, (SAY) crashed 90% today before bouncing up 30% from its low. For anyone that got into the stock today, you are lucky to have made some quick coin. This was a day traders paradise stock today. Its up after hours and I am tempted to just play stock with a small amount of money to see if there is any risky profits. Unless you have time to watch your money literally each second its in this company, I would stay away from (SAY).
Well that is about it for what Tuesday should be. Currently the Asian markets are down very sharply along with the Australia markets which is probably going to hit the US side at the open. Lets hope for some profits.
Happy Investing!
Aman, MBA
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