Dow Jones Industrial Down 315 Points, Market Offically Hit 10 Percent Correction, Buying Opp For Long-Term Investors

by Das Brain

Dow, S&P, Nasdaq all down 10 percent correction

Currently the Dow, S&P and Nasdaq are down big. Watching Bloomberg news at my trading desk here Bloomberg has announced that it is officially a 10% correction.

This fits one of my criteria for buying quality stocks or options as outlined in my post “When to buy a stock or option – Market Timing”

Now is the time to go through your list of stocks that are considered high quality, and look for an entry point in the next few weeks. By high quality I mean large and mid cap companies that are profitable, lots of cash in the bank and of course has nothing to do with this whole sub-prime loans issue that was the catalyst for these recent declines.

Stay away from financials that may have exposure to sub-prime problems because, you do not want to buy now and then later another shoe falls, and the stock price takes a further hit.

Again I am currently looking at:

Apple (AAPL)
Coach (COH)
Genworth (GNW)
NordStrom (JWN)
InvesTools (SWIM)
Liz Claiborne (LIZ)

From my experience, if I buy some quality stocks or buy CALL options for these quality stocks with an expiration out to January 2009, I can make a decent return.

Even if I buy now, and hold until January of 2008, I think I can make some good gains.

It is very difficult to time or predict the exact market bottom, so look at the charts for your target stocks and wait for the right opportunity. If you are in it for the long term, buying anywhere near the bottom should be rewarded in the future.

Please do your due deligence and homework and read my Disclaimer.

This entry was posted on Thursday, August 16th, 2007 at 12:52 pm and is filed under Option Trading, Stock Trading. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

One Response to “Dow Jones Industrial Down 315 Points, Market Offically Hit 10 Percent Correction, Buying Opp For Long-Term Investors”

MoneyAccumulator.com » Blog Archive » Fridays Big Stock Market Drop - Dow Jones Index Nearly 400 Points says:

October 20, 2007 at 12:27 pm

[...] The last time I wrote about a big stock market plunge was back August 16th, I believe right before I left for vacation and the Dow Jones around that time fell almost 10 percent. [...]