August 12, 2010 | In: Uncategorized

A Milder Than Expected Day

Yesterday, I expected the Dow to close today at 10,250, but it closed at 10,320. In my opinion, this is a mark that the market has bottomed.

There was a very bad report today, and frankly I expected the market to respond much more negatively, but thankfully this didn’t happen.

I couldn’t exit none of my stocks, all of them, with the exception of Citi, continued the downtrend. It does seem to me that tomorrow will end the bearish trend for the week, and next week will be mostly bullish. The market should return to what it was 3 weeks ago if there are no bad news coming from Europe.

Two of my stocks lost a lot of money today, CVBF and MFC, but I’m optimistic about both of them, although I wish I entered at a lower price.

BAC will end the downtrend tomorrow, and whoever purchases at this price (even a thousand shares) will make a lot of money in 2 weeks. The stock will, in my opinion, go up at least 15% in the next week or two. BAC is very strong and it’s currently way undervalued. In fact, it is punished by investors for doing the right thing (not charging overdraft fees for $5 transactions).

I have learned something that I always, apparently, seem to forget, that Citi is always a good financial stock to buy. During this storm, the stock dropped only about 5.5%, compare that to BAC that went down 7%.

BP is now a steal at the current price… MOT jumped 4% in the last hour and a half as the Android powered phones surpassed iphone sales in the US.

Comment Form