InvestorPlace Blogs is powered by Marketocracy. Marketocracy has authorized Investor Place Blogs as an official registrar for voting through Marketocracy's Investment Research Rating service. Registered members of InvestorPlace Blogs are linked with a Marketocracy account to establish voting power based on their performance of trading and posting on stocks.
I wanted to post my views about how stock market behaves in October and i was thinking about the subject title. Finally i selected the title which rhymes with "sound of music" which is my all time favorite movie.
When i read Jonathan Coyle's posting on September 28, it reminded me about the impending danger . I am always scared about October. I had a very bad experience in 2005. The stock prices started going down and i started buying some or added shares to existing ones (bargain hunting) . But the prices fell much more. At the beginning of October, i was up 40% for the year. I ended that month with -10% (50% swing ). What was the lesson i have learned at that time ? Be careful with October. Have a lot of cash in the beginning of the month and pick the bargains at the end of around 3rd week.
In accordnace with my October game plan, i have sold some good stocks on Monday just to have 30% of the portfolio in cash. But i saw that the market was going up and up and i decided to use the cash to buy some stock as a very short term investment (2 to 3 days). I bought DSX at 34.5 because the shipping stocks are on a roll and this one looked cheaper compared to EXM and DRYS. Unfortunately today the market went very wild and DSX went down about 6%. All my major holdings AAPL, AOB and DSX suffered big losses today though AAPL recovered a bit after going down about 15% at one point . Today my portfolio went down by more than 4% and i saw that most of the leaders here also dropped 3 to 6%.
I saw some beautiful bargains today but i don't have any cash. To buy atleast one of the bargain stocks, i sold off NXG and MSFT and bought GROW at 22.0 . I don't want to sell AAPL and AOB because i am extremely bullish on these stocks.
I don't agree with dishwasher that AAPL is over valued. As per my calculations (more in a future post) it is worth at least $180. There is every likehood of AAPL crossing the $200 mark this year. This company is firing on all cylinders. You will all see how this stock is going to go up after it's 3Q results on October 22.
Some stocks have gone up unreasonably high in the past one month and they will see more than a correction. BIDU is the best example and DRYS is not much behind. The chinese stocks should see a very volatile movement (up and down) this month. I will look for good entry points into CHNG , LDK and CBAK.
With a NAV of 9.57 i have very little chance of finishing in the top 100. Then why am i still posting here ? Hey i don't visit this site just to see my rank. I also visit this to read other's postings. Some times i learn very good things from a few posts(very few frankly). This is my time to pay back.
Happy Money making to fellow lovers of investing.
PS : This weekend i will post my views on the current state of this championship and leaders in this championship.
Comments are most welcome.
| 
RSS 2.0
