TheInstitutional's Blog : Cought the falling knife! Now some bargains are a real Buy!!!

We cought the falling knife, as expected we had panic spreading around the globe, this was no surprise to our readers since I have been expecting this to happen.

Today the market reached almost perfectly our target on the downside at 1290/1277 on the SP by hitting an intraday low at 1274.

Prompt action from the FED cutting the Fed Funds by 0.75% to 3.50 has been an extremely good timing to prevent panic to spread further.
Good job!

For the ones that read my post this autumn I called for a recession in the U.S. before Christmas and a 25% market correction.
I think I have been perfectly on time on the recession call while the market has taken just a few more days to realize it and face reality.

What's next?
I would not be surprised to see the market trying to test the 1220 area based on the SP500 before a real rally but I also think we are from a value analysis at some very interesting levels.

That means to me that now being short will become more and more dangerous and that is why I suggest a neutral approach.

I am closing my short position and I am stock picking very selectively.
This are stocks that I am buying now (and I am also disclosing this as an analyst since the Hedge Fund I work with has entered these positions):
MBI (The Bond insurer is a big buy here), AFR, BRT, RWT, HOV, LEN, DHI, KBH, TOL (I think quality mortgage and selected home builders are at steal prices!)
BSC (could be a target for acquisition...), NITE among the broker dealers, JCP among battered retail chains could benefit from the Bush stilulus plan.
BX and FIG those Private Equity, LBOs alternative investment asset managers are a big BUY here.