10:40am
I was starting to get worried at the lack of action today but the bulls finally came to life late this morning. Greece seems to be receiving their Band-aid (Bailout) soon, the Dow is up, but nobody seems truly excited. Maybe everyone is tired after having to shovel a lot of snow lately. I’m watching the charts of the S&P 500 and Dow to see where our short term support exists. The Dow has support around 9970 and the S&P 500 has support around 1060. If either breaks, we could see a free fall follow but with the recent move up (just a few minutes ago), we might not even test those support levels today though I was worried for most of the morning about that.
It looks like I made a bad call in exiting SPDR Gold Trust (GLD) too early. It is now around $106 after I exited yesterday around $105 expecting a dip. The dollar is weak today so gold, oil, etc…are not under pressure. I could have locked in some better gains but the weak action yesterday made me skeptical.
I know it’s boring to many but I like to stay diversified in the blue chips. Small/Micro cap speculation plays have the most excitement but make sure you are diversified in your portfolio with some solid large cap stocks. I recommend Altria (MO) with a very juicy dividend and I’m accumulating Marathon Oil (MRO) at these levels as oil has been hated lately. I expect oil to have another run in spring/summer so I might add another oil stock to my portfolio as well…preferably something in the small cap range with big potential. I’m researching a few but if you have any ideas you want me to look into, click the “submit stock” tab at the top and I’ll be sure to take a look.
Impac Mortgage (IMPM) has some impatient sellers under $4 to which I’m trying to buy up some cheap shares going into earnings in a few weeks. I expect the company has turned around and will reap significant rewards in the PPS. Genius Products (GNPR) seems to already be starting its scramble for shares as volume is low and the PPS is increasing. Nobody wants to sell cheap shares to me anymore. The O/S is under 140k last I’ve seen so these prices will only grow higher leading up to the release of Scratch the Ultimate DJ music game release. If the PPS increased to $50 (up $41 from today’s price), that would mean GNPR would only have a market cap of $7 million. Too low, in my opinion…it should be significantly higher and I’m looking to increase my already large position.
Overall, I’d like to see some more aggressiveness by the bulls to help me be long but I’m still feeling VERY good about my portfolio these days. I just can’t trust the movement up yet so I’m trying to keep some cash handy. Be sure to join us in the Live Stock Market Chat that was just set up yesterday and discuss various stocks, the market, your investing strategy…or just meet some other interesting investors. Good luck out there.
Mike
At the time of publication, Mike was Long MO, IMPM, GNPR, and MRO but positions can change at any time.
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Tags: Altria (MO), Bailout, Earnings Report, Genius Products (GNPR), go800, GoIP Global (GOIG), Gold, Greece, Impac Mortgage (IMH), Investing, Marathon Oil MRO, oil, QUARTERLY REPORT, Scratch the Ultimate DJ, Short sales, Short Selling, Shorts, SPDR Gold Trust GLD, speculation, speculative stocks, Stock Charts, Stock Ideas, Stock Market, stock market today, Stock Picks, Stocks, Trading
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