Friday, June 27, 2008
Who's Ready to Buy?
The past few days have seen negativity wash over Wall Street. It's times like these that we have to think clearly, and not get taken over by emotion. When I see quotes like this, I'm reminded how hard it can be:
"Sell everything. Nothing's working. Revisit when the prices are adjusted for a big recession, soaring inflation and a crushed consumer. Sell at 12,000 and come back at 10,000. Even better: short it." Jim Cramer. June 27, 2008.
Now where does that leave his legions of amateur investors that aren't very experienced but have taken his advice to buy stocks up until yesterday? It's sad.
Anyways, the selling has been swift and painful, but its been done without a ton of volume, much like the March-May gains. I think many are on the sidelines waiting things out, and its hard to blame them.
I'm still a cautious buyer of select stocks, and although the market may drop a little more, I don't see a ton of downside. I'm considering covering my ETF's shorting the Dow. Some stocks that look attractive to me right now are, ABB,RIO,NOK,BA. I'm looking to add to some positions on further weakness.
Perhaps today will mark the Jim Cramer bottom!
Disclosure: Long ABB,RIO,NOK,DXD