If I was here yesterday I would have bought into QID and DXD so it probably worked out for the best. I'm looking at $65 DXD & $60 QID but will of course book along the way and add on pullbacks. I should be into these two next week depending on when the market falls. As for SKF, i'm looking long-term at $150.
As for out MarketBull buddy Sessna, even if we go up to 13,000 you will make money by following my strategy. There will be volatility no matter which way we go giving you chances to buy and book often.
The reason for my bearish outlook is NOT because the bond insurers may have their ratings downgraded (but thats where that rally yesterday came from). The problems in this economy are sooooooo much greater than that. Wait till we get the housing data next week, wait till Fannie & Freddie announce next week. I'll give this market credit as it's being very resiliant, but the news keeps getting WORSE NOT BETTER.
Hopefully we can eventually get the decoupling of the miners from the main markets and get some monster gains coming. But for the time being keep booking on strength and buying back lower as this volatility will be with us for a while so take advantage of it.
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Joe,
Thanks for the info. I was thinking about adding DXD, SKF and QID as well on Friday afternoon. I heard rumors of the ridiculous bailout and decided not to pull the trigger since this market is looking for anything to latch onto. Glad I waited.
I am betting that we have a spike and decent run tomorrow. Housing will be bad, but the market is expecting it to be. Any bad housing news is almost ignored at this point. My buy bet is tomorrow afternoon for the three. Hopefully at low levels and then book in chunks for the rest of the week. If we break below 1320 in the S&P...look out.
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