What Stocks I Am Looking At To Buy After Recent Down Turn

by Das Brain

stock trader holding head stressedOver the last month the stock market has taken a big down turn. All stock market indexes are down starting from roughly the second or third week of November, and recently just had a small bounce upwards.

Stock prices have followed and many of the stocks that I have been tracking has lost
up to 35 percent of their value of their stock price. To be transparent there are a few stocks that I am holding that has taken a big hit. All sectors have been hit, technology, financial and retail as well.

S&P 500 chart from sept to nov 2007


At this point according to the stock market indexes 3 month, daily charts it looks like we may be near a bottom. I say near because the markets are not going to take off all of a sudden, more like over the next 2 months it will be a sluggish upward momentum towards the end of 2007.

If the U.S Federal Monetary Oversight Committee lowers the interest in December, it may give the stock markets a boost, but this is not guaranteed.

Companies stocks that I am currently looking at are:

Sandisk (SNDK) – Currently too early to get in on this stock, still downward trend, will have to wait for reversal probably another week or so.
- Many people don’t realize that Sandisk is number 2 in sales of mp3 players, after Apple’s iPod
- Market Leader in flash ram space
- Ahead of competitors on next generation flash based hard drives, Solid State Disk (SSD)

Blue Coat System (BCSI) – Also too early, wait until confirmation of uptrend. Within next week or so.
-Strong demand for their web security product

Coach (COH) – Quality handbag retailer going into Christmas season, looking for upward movement in price

Amazon (AMZN) – Online retailer and technology company, that has taken a hit lately. Looking to move in around $76.

Stock Index I am looking at:

Nasdaq ETF (QQQQ) – Nasdaq index should rise from here until end of year 2007.

Remember to read my disclaimer and do your own research and study the charts. My strategy here is buy option contracts on these stocks while they are at a low and sell them in a month or two when markets rise. There is always opportunities after a recent down turn.

However, it always doesn’t hurt if you take some profit off the table on the way up, and also right after purchasing a stock or option set a stop loss order to minimize losses.

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One Response to “What Stocks I Am Looking At To Buy After Recent Down Turn”

  1. [...]  In my last post of “What Stocks I am Looking At To Buy In Recent Downturn” I specified a few stocks. They are Sandisk, Blue Coat Systems, Coach, Amazon and the Nasdaq ETF.  If you look at the charts for these companies the only one that did well was Amazon (AMZN), in my last post I mentioned getting in at $76, it is now at $95.24. Made about $1200 on AMZN options, got out early but “Profit is Profit.” [...]