Well, about the only positive thing to say about today’s trading session is that Dow and the S&P 500 were able close above the October lows, but just barely. The indices lost another 5%, on average, the Nasdaq finished at fresh five year lows, breadth was an atrocious 29:4 to the negative, and the dip buyers were once again nowhere to be found. After losing an average of 15% over the past six days, the indices are once again quite oversold and the mood is extremely sour.
That means that conditions are ripe for some reflexive buying, but we’ve got to wonder where the catalyst might come from. With the poor earnings and miserable comments out of BBY as well as the shift in strategy in regards to the TARP, the news what been wholly terrible lately, and it’s unclear as to what might trigger the sort of rally that would get this market moving in to the upside.
Still, as opposed to some out there, I feel that now is the time to buy many stocks that are cheap and have safe dividends (in my opinion). Names? How about fcx at 22; nue at 30; met at 27; gs at 65; goog at 295; drys at 9; I could go on and on. Yes, each of the above has problems - that's why they are so cheap right now. What will they be 3 months from now? A year from now? I'm betting they won't be so cheap.
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