Saturday, May 15, 2010

Weekend Review, May 15, 2010

S&P 500 review, along with some stocks, and update to my buy list.

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This pullback feels a bit different from the previous one that occurred in Jan-Feb/10. In the previous one, BPSPX bottomed out at 64.5 before resuming its march forward. This time, we are already below 64. So, there is a potential for a deeper correction down to 1090 or so. However, I am not expecting the Feb/10 lows of 1040 to be violated. Because of the ongoing European Debt crisis, we may be entering a period of sideways movement until Sep/10.

Moving my stop in Visa Inc. (NYSE: V) up to 76, still hopeful it can dead cat bounce up to 81-ish.

Eyeing the gap fill at 71-ish for Baidu Inc. (NASDAQ: BIDU). This stock is showing amazing strength given current market conditions. I will try to get in before the start of earnings run-up next month.

Will also be looking to buy IBM (NYSE:IBM) for an earnings run-up. Note that it is also above its pre-crash levels. Baidu and IBM are one of the few stocks that I have found so far that are above its pre-crash levels. Well, Google (NASDAQ: GOOG) is just barely above its pre-crash levels, but since it is similar to Baidu, I will swing Baidu instead of Google.

no action yet until I see how it behaves under 141.5. My original plan still applies:
Goldman Sachs (NYSE:GS):
wait for the dip below 140, and then buy the breakout back above 140
stop 135
target 150

Berkshire Hathaway Inc. (NYSE:BRK.B) is just barely above its pre-crash levels. Trading plan for this stock is a bit trickier. I think I will have to scale into this position.
1/4 position long at 76
1/4 position long at 75
1/4 position long at 74.5
1/4 position long at 74
initial stop on all 73
target 80

Plan for General Electric (NYSE:GE) slightly changed from original post :
buy any dip below 16.5
stop 14.0
target 21

All other plans for stocks that I mentioned previously are cancelled.

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