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October 14, 2009
Edited: October 14, 2009
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There are some CAVEATS however. These stocks are good plays only if you think the overall market will continue to trend upward. Most of the stock selections will be stocks that have already moved up and, in our opinion, will continue to move in that direction overall. These will not be 'buy and hold' stocks. These will be stocks to move in and out as the direction warrants and do it repeatedly. The stock to discuss in this blog, for example, is one of those types. The stocks are not necessarily BUY recommendations but PLAY recommendations. There is a difference.
Also many of these stocks are those that I either own or recently owned and plan to re-purchase or wish I had...hence the reason for the title.
The first Sector is Finance. In my opinion the best stock to play is
GOLDMAN SACH (GS).
GS is very controversal. Some call it a 'evil' company, others call it the strongest stock. In either regards I 'm interested in profiting from this stock. It is a high price stock but tends to be very volatile. For example, on Oct 13, it went down to 185.10. On Oct 14, at the moment, it's up to around 193. What you want to do is get into the right 'wave' or groove, and buy this stock on down turns and sell on up turns, on up turns you want to avoid greed and sell. Then wait for another drop to re-purchase. Looking at a 78 or 52 weekly chart, you'll see that it's on a very steady 45% uptrend line since the beginning of the year. It has consistently stayed about it's 10MA.
GS has had ongoing increases in overall market share. The stock price has completed a 100% round trip in a "V"-shaped recovery, moving closer to a 200 point resistence. SInce the stock has, for quite a while now, printed lower lows and higher highs, looking at it's chart should provide good entry points on when to buy and when to sell. If the think the stock has become 'too high', consider this. One joker wag in the PP shorted this stock when it hit a then high of 90, now 100 points later, that person is a 100 point loser.
Last point, I wrote this blog regarding GS the day before it reports earnings for the quarter. Either way tomorrow's price on GS will be very different than today's.
Our next blog in this series will tackle either the Health, Home Building or Internet sector.
