Stock Picks and Company Reviews - Churn » market correction

Correction in Progress

Chris P. — Tue, 04 May 2010 16:07:45 +0000

As I told everyone here: Market Correction is Coming. The VIX is off the chart once again and the S&P has plunged more then 40 points from its high, almost in 1 day. I must say, they definitely made us sweat near the top but if you stuck to your stop limits you should be in the money. I’m looking for support levels near 1168 and 1144. I would take positions off the table at both those points and start looking to become a bull around 1100 – 1125.

I hope this helps everyone, happy trading!

Market Correction Still Coming

Chris P. — Thu, 08 Apr 2010 16:57:40 +0000

Wow, I’m a bit surprised myself that the S&P has stayed above 1160 for this long, in fact it hit 1185 which was my high point. At this point (1185), I’ve decided to start shorting the SPY and build my short on the QQQQ, the further it goes up, the more I’ll short and wait for a correction. If the S&P hits 1230 before it hits 1115, all my bets are off and I’ll take the loss. I’m confident that will not happen. Remember, the market is like an elastic, the more it stretches, the bigger the correction

Also, I’ve liquidated all my gold stocks and ETF’s until the correction takes place. The only commodity I’m still holding it physical gold.

It should be a great few weeks of trading for everyone following my lead. Enjoy!

The Market Creates a Buying Opportunity

Chris P. — Mon, 05 Oct 2009 14:00:06 +0000

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!