|
NeedToUseYou -> Guess the market or stock (10/6/2008 9:02:49 PM)
|
I figured with all this economy talk going on why not make a game of it.
Put down what you think the market low will ultimately be in this downturn to keep it simple the Dow primarily though you can guess more.
Guess if the Dow will be up or down tomorrow and by how much.
If you are watching a particular stock or stocks. What is your entry price, or where do you think it will bottom.
I'll go ahead, I think the DOW will eventually hit around 8500
Tomorrow, I'm guessing down a couple hundred, because of Bank of Americas revised earnings numbers being slashed in afterhours, unless the interfering FED announces some new money give away. (would not be the first time the FED has ruined my plans, to buy, by announcing some new money give away).
I'm looking to possibly enter the market if Bank of America dips below 20.00, which is now possible again, because of the cutting dividend, and profit plunge and share dilution. Why below 20.00? Well, because even with a 50% reduction in dividend, and declining profit margins they still are profitable, and buying below 20.00 at .32 dividend and weaker profits, is more or less equivalent to buying at 40.00 with a .64 dividend and stronger profits. The FED will not let Bank of America go the way of other banks, IMO, they've adsorbed to much of the economy. So, even if I'm wrong and the bottom is significantly lower than 20.00 well, long term it will still be a good investment, as they will be one of the last to go on the way to a great depression if it spirals that way. If not and the economy rebounds, BAC will easily reach new highs, because its acquisitions will pay off well in a recovered economy and I'll be sitting pretty and can work towards my projects more quickly. Now, below 20.00 is my upper limit, here, I may depending on announcements, change this, downward. But I doubt I'll buy it higher. Long term it wouldn't be bad at 20.00 or even higher, but I'm greedy like that, I like to buy absurdly low. So, I may not get an opportunity. And short term I'd take gains of 5.00 dollars, and get out(FED manipulating the market probably), if I did buy unless some solid good economic news came out, then I'd simply hold.
Right now, I'm more looking for quick turnaround if possible, but not losing my ass permanently if things don't work out as expected.
|
|
|
|
