supershort

Five Stocks to Own Now that the Dow Has Bottomed

User 236687:

You have not read my post carefully. The buildout in China, India and Russia are done. The little glimmer of hope has been tied to the olympics that their economies will continue to grow at a pace that has been priced into the market. The slowdown affects everything.

As far as WM. If they were clamoring to get in, the Saudi's would have jumped in again, just like they did with Citi and they got burned, but so did Citi. WM is not a good investment in my opinion. You may think it's cheap and at $5 it may very well be, but how are they going to make earnings? Write more loans? The industry is broken and will be depressed for quite some time. If you wish to hold this for years and risk another "shoe drop" then go right ahead. But the potential for more runs on banks is there and quite real. WM is not in great shape.

Five Stocks to Own Now that the Dow Has Bottomed

"whenever an article is written by an author whether right or wrong he puts his name on the line.
but i find that people who ridicule the article do so hiding behind cowardly screen names. show some balls and print your name atleast "

Sure, maybe use a name like User 238740&1/2.....

Jobs report was dismal, still in a downward slope. Waiting for the "magic number" when they will all scream "RECESSION." That is when that may be time to call a bottom, although I think the global economy will be sluggish for quite some time. I look for China to go into a major slowdown now after the olympics are over. The tendency is to overestimate the impact of any specific event on the economy. There are already reports that the cities are smog filled and even some of the venues are inadequate. The massive buildup of hotels has been overdone and there are more than expected vancancies. China didn't plan on the global slowdown and thought they were going to go like gangbusters. Their numbers are going to be way off and then just like when someone gets buyer's remorse, they will cut back spending to make themselves feel better and conserve capital. Look at all the cities where the olympics have been held. The lasting economic benefits have been brief and usually followed by a period of contraction before starting another leg up, Lake Placid, Park City, Sarajevo, etc.....

To Ricki who bought FRE on July 31st....You enetered a bad position as the chart shows you bought right at it's peak and it appears it will test the low of under $5. It may go back to 3.89. That is a technical base. So your options are this.

Sell and protect against further loses, as it is highly unlikely it will reach your entry point anytime soon.

Hold the position but sell calls on your stock. Though it has run down quite a bit, the calls will bring in minimal funds.

Buy puts 5 strike price, and hold your position.

Wait for the lows of the year and then double down or possibly tripple down your position to play the bounce. This is the riskiest and takes a planned strategy becuase it is only used to get out of a position and not as an investment. Sometimes I close out my bad trades like this just with a minimalk loss as compared to a huge loss, just to "get out." Never hold this position for more than a 5 days after the bounce because the stock will usually retrace and then you are going to have a larger loss than you had originally.

Given the market and financial conditions, shorting the XLF is a better play than goig long. It has had a nice run up and you could pocket an easy 10% within the next few dfays.

Five Stocks to Own Now that the Dow Has Bottomed

Well the jobs numbers don't look good. It looks like we aren't or wer in a recession, but it looks like it's comming, so the dow will need to lose at least another 1000 before you can call the bottom.
User 235322 has probably got it right, but I am supershort but that's super duper short.

Five Stocks to Own Now that the Dow Has Bottomed

I love all these guys calling the bottom. The editor is probably listening too much to the high idiot of investing Jim Cramer. He has called the bottom about 5 times since August of last year.

Short Covering Helps Boost Stocks

Although the major indicies are up over the long term, it is a fool's game to invest long term. For every Microsoft, if you bought in 86, there are hundreds of Enron's and other companies that went bust. Since last year, I have been a short seller and I have been up 24% last year. This year I am up 16%. I short every overvalued company, SPWR, BGG, ALGN, JCW, anyone that the P/E ratio is greater than the rest of theri peers. I may get upside down for a while, but they all come in.

As far as fixing the economy, How about fixing the government first. Less taxes and less interferrence in the markets. Anyone who calls for a government bailout is a socialist, or communist. That's not what free markets are all about. You numbnuts should read our constitution. The government presently is bankrupting us and will descimate us in the long term. You want America strong, bring back manufacturing here. Make laws about CEO's and others in stock option distributions that are equal for everyone. Build more nuclear power plants, and we will have enough oil for ourselves to power the autos. Yes, we have to have our peple doing the jobs that illegals are doing now. Yes, it will be a bitter pill, but it will make us stronger in the long run. Less government, less welfare, less handouts, no bailouts, just hard work which this country was founded on but now is about doing the easiest way out without work. There is no such thing as a free lunch nimblenuts, remember that.

This won't be over until a few banks, insurers, lenders, retailers, and other companies go out of buisness. That's when you go long, but only on low P/E stocks and a very selective few which I still can't see yet. It is much easier to short than go long.