Joined Jan 1, 1970
509 Blog Posts

Bottom Fishing

Look people, let me make this as simple as I can……start buying here.

If there’s ever a time to go bottom fishing, it’s now. The market has been washed out and is trading off a bottom. I said, “a bottom”, not “THE bottom”. We won’t know if we’ve seen “THE BOTTOM” until several months from now.

Kudos to The Fly for ID-ing the areas to fish in: materials and energy. I’d also add industrials. Given the massive Q3 sell-off in these sectors, it’s not hard to see why this can still be a lucrative area to fish in.

Granted, bottom fishing is not for everyone. In fact, if you commit your whole portfolio to this strategy, rest assured that you might be in the running for the  “Asshat of the Year” award. If you wait until you feel good about buying stocks, you’re going to miss the opportunity. As a matter of fact, if you wait for your charts and indicators to show technical strength, you’re going to miss the opportunity. Just know that after an egregious, violent ass-kicking sell-off, it’s not unusual to see the most beaten up names bounce nicely. (Notice how back in the summer, financials had a move off the July lows). There are times when bottom fishing is appropriate for part of your portfolio, and now is one of those times.

So, here are some names that you can check out. As you start to do your research, pay attention to when they report earnings. (No, I’m not going to do that for you). Also, make sure you establish stop loss points and stick to them. It’s just plain smart to have an exit plan in case the trade doesn’t work out. Consider it done, that you have been put on notice.

Apple Inc. [[AAPL]] , Agrium Inc. (USA) [[AGU]] , American Superconductor Corporation [[AMSC]] , Atwood Oceanics, Inc. [[ATW]] , Akamai Technologies, Inc. [[AKAM]] , Archer Daniels Midland Company [[ADM]] , Cal-Maine Foods, Inc. [[CALM]] , Chicago Bridge & Iron Company N.V. [[CBI]] , Cameco Corporation (USA) [[CCJ]] , Continental Resources, Inc. [[CLR]] , China Mobile Ltd. (ADR) [[CHL]] , Deere & Company [[DE]] , Eagle Bulk Shipping Inc. [[EGLE]] , KBR, Inc. [[KBR]] , LDK Solar Co., Ltd. [[LDK]] , 3M Company [[MMM]] , Meritage Homes Corporation [[MTH]] , Northrop Grumman Corporation [[NOC]] , Southern Copper Corporation (USA) [[PCU]] , [[RIO]] and Texas Industries, Inc. [[TXI]] .

Happy angling.

This is just a partial list. Now go make some money.

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