Paul Meyer Buys Houses

Is the market tired and ready for a nose bleed?

Today most stocks started to show some big red candles engulfing the previous days gains. Most international stocks and indexes, expecially Asia, fell over night. I predict the stocks might rise higher tomorrow, but continue to fall for a few days and then continue their rally since they have been bullishly buying buying buying for the past weeks. One index expecially which has had a second big move is China Index fund (FXI @ $109) currently has had a run from low $80’s to recently $110’s. With the large lower opening price today I think there will be some selling off of some profits during this earning season. I recently bought MAY 105 PUTS. If I’m right I should be sold out by Tuesday April 25. If I’m wrong I’m finished trading stocks for the year. The trade looked very clear and I’m determined that all the indicators and general market is in my favor even with’s (GOOG @ $471 – after earnings $481) surging profit beating analyst expectations. The overal market has had a good run up and even though I’d like all my stocks to fly high I know its about time for some hard selling. So far economic retail sales and non changing interest rates have made market condition good for bulls and earnings haven’t been so bad either. I think’s earnings (YHOO @ $27.80) even though were lower the stock will rise because of its real solid value.

Recently my portfolio has been a smelly dump of losers sucking ever profit from me dry. My goal is now to repeatedly play stocks that are profiting me in the correct direction and increase my portfolio to a new high. My account is currently worth around $16,000 down from around $38,000 just since mid Feburary. What I did wrong was get into position and trade after a big win. This I already knew not to do. It’s a general big rule to follow, but I guess the increased account got the best of me. I’m still up for the year maybe + $5000, but I suppose feeling a bit miserable and disfunctional at the moment.

I have not bought (BSGC.OB @ $.38) because on QCharts it shows buying movement, but it looks like the stock is going to settle a little lower before it moves again so I’m going to wait to buy a large amount of shares. If it does move higher then the public has gained interest and then that will be enough cue for me to know its the right time to invest in it. It maybe be struggling currently, but it is a very new type of email service that I think the trendy crowd will really jump into which will mean big money for the company advertising big names on email accounts.

6 responses

  1. ouch!
    thats a big loss in a short amount of time!

    I just posted about my asset allocation. i’m up 6% this year.

    April 20, 2007 at 8:58 pm

  2. Yes, I agree, I am the loss king. FXI is in a downtrend and last year it peaked and went down all through May 06′ so we’ll see if I’m right about my MAY Put.

    April 24, 2007 at 6:07 pm

  3. Thought you’d like this 🙂

    April 26, 2007 at 1:18 pm

  4. Ebay Miscroft Google seem to me sure bets. They alrady have low forward P/E. Their ability to grow revenue and earnings cannot be doubted. they can’t go down while their earning continue to go up. They can’t trade at P/E under 10. Can they?

    April 27, 2007 at 6:55 pm

  5. As for MSFT and AMZN. Both earning so far have been great and it already has been reflected in AMZN’s new price after reporting earnings. You definitely have to trade what you believe in. I am in no ways an expert because the market can change always.

    May 2, 2007 at 12:02 am

  6. that last comment said ebay and i got it mistaken. anyway.

    moom – cool wallstrip clip. interesting stock. i checked out that flip.ob ill keep lookout on it.

    May 2, 2007 at 12:09 am

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