August 9, 2011 | In: Financial

The 7th Most Horrible Day in the Stock Market

According to CNN, yesterday was the 7th most horrible day in the stock market. The Dow index went down 635 points (or 5.55%), while the S&P went down 80 points (or 6.67%) The most affected sector was the financial sector, where stocks such as BAC and C went down over 20% and over 16% respectively. Here are some pictures, courtesy of Google Finance:

Not the best day for BAC. In fact, I think yesterday was the second worst day in BAC’s history. Yesterday I thought it was a myth, but apparently BAC is on its way to becoming a penny stock! The problem with this stock is not only the fundamentals of the company, but also that most investors (including myself) loathe it and dread it.

I never expected C to fall below the $30 level, but it did. In fact, one has to wonder whether C can keep its head above the $25 level through this storm. I highly doubt it if the storm lasts. I do think however, that C is a great buy at this point. Even at $35 C is a great buy.

I’ve never traded this stock, but I do know that JPM is one solid stock. A great buying opportunity. One that might return 10% in a week for those investors with real guts!

I love MS. A great great buying opportunity. I think MS can easily gain over 20% in less than a month.

WFC is another solid stock that I recommend buying. I think for this stock, all the losses for the past few trading days will be easily erased and reversed within the next week or so.

I think that this is a storm, like any other storm, made specifically so that the big guys can make some money by buying stocks at dirt cheap prices and then sell them a few weeks later for a 20% premium. Using money to make money, but again, this is the nature of this business!

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