Tuesday, February 5, 2008

Proceed With Caution


The markets for the most part found no buyers today. Fear is easier to find than greed. Having said that, the markets are now just a bit overbought and could see 1 or 2 more days of selling. If you're in cash, then next week will probably be better to put your money back in the markets. Keep an eye in your stocks that are not selling off too much. That's a show of strengh and will most likely soar when the markets comeback. I managed to find a stock for you to look at and consider should the market push it above resistance. VMW gapped down even though earnings were not that bad but the stock has remained in an area and is resisting the selloff. The gap down was overdone and unjustified in my opinion and that's why the stock is trying a comeback. Buy point would be now up to around $60 if the markets don't selloff again as bad as they did today. Keep your stops tight and be patient since buying oppotunities will come again.

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