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  • Economic Predictions for 2010

    Posted on February 18th, 2010 Chris P. No comments

    After a stellar recorded year for 2009, it’s time to make my predictions for 2010. The volatility we saw in the previous two years is going to dramatically slow down. Economic regulations will come into play and stability will come into the markets. We may see some volatility within the commodity and forex markets, but don’t expect the DOW and S&P to move all that much. Here are my predictions for 2010

    • S&P will be range bound, between 1025 and 1250. We definitely won’t past 1250. I believe our low will be 1050 precisely. If we fall below, buy buy buy!
    • Companies that profit and have cash will surge. Companies without the cash are going to get slaughtered. Expect a lot of volatility in the micro perspective of the stock market, but on the macro perspective the index will be range bound.
    • Blue chip companies like GE, POM will have a banner years.
    • I’m expecting Gold to continue towards $1500-$2000 this year.
    • The banking sector will strengthen in the later half of the year with companies like Bank of America leading the charge. I like Citigroup as well.

    Overall, this can be a great year for many of us as long as we stick to the right sectors at the right time. I wish everyone luck in their trading!

  • The Market Creates a Buying Opportunity

    Posted on October 5th, 2009 Chris P. No comments

    A new week has begun, earnings season is around the corner and the market has corrected the perfect amount. I see this as a perfect buying opportunity and I’ve been building positions in multiple stocks which I will outline below. First we must ask why this is the best opportunity to buy? No one can be 100%¬†certain but I trust the technicals that I follow. I believe we have heavy support around 1000-1025 on the S&P and I don’t think our market can crack this point. If we do, all my bets are off and all my stops will be hit which is a minimal loss considering we are sitting at 1025 already.

    The stocks which I will be looking at most specifically are Citigroup (C)¬†and General Electric (GE). I like Citigroup at $4.25-45 and I love General Electric at $15.00-50. I’ve taken my first positions late on friday afternoon and I anticipate by the end of October the returns will be substantial. We may see-saw till mid October, but once mid October catches a drift, Citigroup should propell to $6 and General Electric should be at $19. There is one factor that sits in the way and might play against my technicals, and that is earnings. Both companies earn by mid month but since forecasts are fairly conservative, it will be difficult to negatively impact these stocks.

    Lets wait and see. Enjoy trading everyone!