Sunday, July 16, 2006

My final thoughts for the upcoming week

If you are looking to be greedy and try and buy in even lower, I suggest that you stay out for a bit and watch the market get rattled this week.

If you are ok buying today and waiting, I would take a mixed strategy
1. Buy the oil related stocks we've looked at
2. Buy TRID, TIE, and ISIL, ZOLT, ZRAN - these are longer term holdings of oversold stocks
3. Buy stocks that move in 5% cycles - DIS, ET, AMX, etc. Sell to lock in 5%.

If you are feeling aggressive, buy puts and calls.
TRID calls look like a slam dunk to me. (I own some)
Same with ESV, JLG, GRP and TIE - I see oversold stock prices for companies that will likely have strong upside results.
Puts as I mentioned earlier this week - luxury stocks, marine stocks, housing stocks, consumer durables

I do not think the market in its current state will give many stocks very much love until we approach the Fall. The buildup to the next Fed meeting August 8th will add tension - because the Fed has to raise rates again.

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