Thursday, October 9, 2008

Pocket Full of Kryptonite

Well, if you read my last post from Tuesday called, "Help save the animals", you can see I was pretty accurate on the 8500 range by this Friday. No market crash is exactly the same as history has proven. Tomorrow Baby Ryan will be going long in his trading account in the form of the common stocks listed below. I expect the market of open down approx 200-250 points  and will become a buy once the INDU is down 300 points off the open. After the forced liquidations get absorb you will see the infamous CAPITULATION take place. This is a once in a lifetime opportunity to buy in at a discount better than you can find at the Christmas Tree Shoppe or Kmart. Simply buy your position, shut down your computer and enjoy the weekend.

The Vix is at 65 and moral is at zero. These are the indicators that make this market a nibble right now. Now what sectors do you buy for the future. You buy Semiconductors and Storage Management companies. Look at this list and notice that some of them are up during this massive selloff and the rest are mildly down. 


A smart play is to buy all 8 of these for 1/3 of your normal position. You now have you own mini mutual fund without all the extra lagging stocks. Regardless of how long the market takes to regain its footing, technology and storage will continue to advance. It falls under the topic of, "Who moved my cheese?" This basically states that if you sit dormant and complacent you will miss the boat. Adapt now and bitch later. You can apply this to anything in life. The new lifecycle of the market is about to begin so just get in small. I can imagine how many people sat and watched their money disappear the past month and actually have started liquidating this week. These are the sheep and sadly, sheep are abundant. Never follow the flock for they are the greatest inverse indicator within the stock market. The market always trades on emotions rather than earnings and technicals when it is overbought and over sold. 



Positions of all 8 will be acquired in lots of $500 per symbol. The final prices will be updated tomorrow night. I plan to sit in these for at least 2 weeks to maximize their discount. Please share this blog with a friend. My daddy lets me stay up late to share my views and since I can't walk he has to wait till I finish my blog to carry me into my crib. So for a reward of my time, please share the blog or just leave a quick comment below. See you on the field when the bell rings at 9:30am.


2 comments:

Anonymous said...

I hold AMAT, at what price should I sell?

Roger Hutchison said...

Fantastic insight! My 2 year old wants to hook up with you and discuss irrational stock valuations.