I like today's Dow showing after these 3 days drop. I have heard so much bearishness in the market now that I think it is almost time to be real bullish. I may be wrong, you need to do your homework still...
I know your concern recently regarding the recent drop. I still maintain my bullish view mid term (2-3 months). In fact if you are not a day trader or swing trader but an investor, I urge everyone to get some stocks cheaply, and hold it. I am not so sure if you can get it at such a cheap price anymore 3 months later, when US Election is at its last stage.
Please don't blame me when you lose money these few days. I am talking about months, mid term investment!
I got a friend who asked me what kind of sector to look at.
My answer is Look at the offensive sector! The sector which has been knocked down and out in the second quarter. Sector rotation is on its way. Forget about the defensive sector like healthcare and utilities. They gone up too much. Look at banking, energy and technological sector.
As an example, I think this is one fantastic chance to get in on APPLE. Today it gaps down 30 points at open, from $600 to $570! This may be your last chance to get it on $570 this year. Wait till you hear their iphone launch. No chance already!
If you think that Apple is expensive at $600, use stock option to buy half the price. I have a strategy I called the "Stock Replacement Strategy" that you can buy this stock at half the price at $300! Yes, not $600, but $300. If you would like to join us to learn how to do that, join us in the seminar below:
http://www.danielloh.com/p/investment-seminars-to-register.html
What about Bank of America at $7? What about Goldman Sachs at $96? Financial sector has dropped much too. It has dropped so much. Let us wait for 3-4 months.
Energy has reached its bottom in June, and running now. Get in.
Baidu, another tech stock that I recommend when it is $100 has ran to $120 a couple of days back after a fabulous earnings.
http://www.danielloh.com/2012/07/us-stock-tip-baidu-double-bottom-at-100.html
If You don't get in now, you might miss one of the greatest run this year, apart from the 1st quarter bullish run this year.
If you are talking about Singapore stocks, get into Ezion hold it until it breaks $1! It will break $1 this year eventualy. Fundamentally it is the highest growth rate stock in Singapore. This is a growth stock!
Sakari is beaten down and out! Look at it and hold it if you can. Fundamentally, its PEG ratio is good, less than 1, meaning their price is cheap compared to its growth.
But remember these stocks are for investment, give it time, it will come back.
Of course if you want to speculate, you need to do Technical Analysis and study your charts. For speculators who swing trade or day trade, you need momentum to be with you. And probably July hasn't proved to be such a month. Let us wait for something clearer. If not, go in with small lots if your hands are itchy!
Rgds
Daniel
www.danielloh.com
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Secrets of the US Market and how it affects Singapore Market
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