Sunday, May 9, 2010

Three to watch out for

Let me start this post with a disclaimer dear readers. I am not recommending to go and buy any stocks here. In fact, if anything, I recommend staying on the sidelines until normalcy returns. By normalcy, I don't mean that the markets resume going up. As short term traders, our goal is to make money irrespective of whether the markets move up or down. But at least wait until the charts start behaving themselves once again and the price movement begins to make sense.

One of the many things (I should do a full list sometime) I love about trading is how the markets give one the opportunity to learn something new everyday and if one has their eyes, ears and minds open and the right attitude, the opportunity to grow as a trader everyday. And it is no different in these exceptional times. I chose these stocks because I want to see when the bounce occurs, which stocks will move up the most - the most oversold ones or the ones which have held up well against the onslaught of last week. All these stocks were up on big volume on Friday and closed within 5% of their 52 week highs on Friday, so they have performed relatively well the last week. Of the three, I particularly like DPS.

Take care and good luck!


Is It Possible said...

Check out CEF & DGP, if we get a bounce which is very likely this might be good picks.

positiontrader said...

Thanks IIP. I will check them out.