We’re in the midst of a down leg and it feels like the world is about to end. It’s always so damn hard to sell at the top and buy at the bottom. That’s why you are supposed to raise cash when times are good, in order to buy when things are bad.
Despite the market cracking lower here, I am in no rush to buy more stock. As a matter of fact, had I exercised a little more caution, I would not be “enjoying” the broken elevator action in both Equinix, Inc. [[EQIX]] and Jarden Corporation [[JAH]] . Nevertheless, this is exactly what the dip buyers have been begging for, a damn dip.
I have a short list of stocks on my buy list, including Corning Incorporated [[GLW]] , Equinix, Inc. [[EQIX]] , POSCO (ADR) [[PKX]] , Ciena Corporation [[CIEN]] , Aracruz Celulose SA (ADR) [[ARA]] , Ctrip.com International, Ltd. (ADR) [[CTRP]] , TEKELEC [[TKLC]] , IAC/InterActiveCorp [[IACI]] and [[MWW]] .
Essentially, if you are going to play this game correctly, you must stick to a thesis and a strategy. At the moment, my strategy is long only, focused on Foreign and Technology stocks, with trading exposure into the commodity space. In addition, due to the recent market run, I have made it a point to hold a 20%+ cash position, at all times.
I will begin relinquishing such said cash as soon as The PPT gets into the 2.20’s, which should be shortly.
NOTE: Consumer staples are very strong, check Colgate-Palmolive Company [[CL]] , The Clorox Company [[CLX]] , Church & Dwight Co., Inc. [[CHD]] and The Procter & Gamble Company [[PG]] .
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