Thursday, November 01, 2007

First day of November recap

November is the strongest months for stocks. Boy did this month get of to a great start ..... if you read charts upside down or if you are a bear. 2.6%, 2.6% , 2.4% the respective percentage declines on the Dow, S&P and Nasdaq. Financials got obliterated with banks down over 5% . Citi C was to blame with analyst downgrades on rumors that further asset right downs, would leave the global financial giant short on capital.

While I write this Asian markets are plunging and fear and panic gripes the globe. I see this as yet another buying opportunity unless we cut through the loans we made a couple of weeks back in which case we may see the Dow back to 13000 or lower. I am preparing to cut more positions and raise cash in this inevitability.

I did buy some C today because I believe this stock is too damn cheap. Anything below $40 is too cheap and I got some gifts under $38.50. I expect a double within 24 months.

I added some more to my NTES position because this Chinese online gaming stock bucked the overall trend and was up an amazing 7.7% in a terrible tape. SNDK MU BOOM INAP also looked strong until later on in the day. Once 3:30 came along the plunge was in earnest. Nothing stopping the bears.

The less I talk about my other positions the better though I am thankful I sold out of LVS and COGT in light of this evenings massacres in both these issues.

While I don't like the looks of the market , we may get a rally on the back of strong employment numbers tomorrow. I would however be reluctant to buy a higher open preferring insead to buy SRS QID SDS DXD as protection . A weak open will be bought atleast on my part.

I did buy more SLV today on that dip below $140 . I see silver prices with a lot more upside.

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