It has been several weeks since my last post due to personal business, yet the market is at about the same point as it was when I last posted. The DJIA seems magnetically attracted to a number between ten and twelve thousand, so the seasoned (and lucky) day trader can make large sums of money on the intra-day volatility as well as the periodic swings the market has experienced. As I mentioned in my first posts, Harvest Natural Resources (NASDAQ:HNR) regularly swings between around $8.00 and $9.00, usually within about week's period. Adding this stock to your portfolio around $8.00 is prudent for nearly any investing strategy, but I would not advise short-selling this stock any time soon. Other analysts have given this stock a price target of $12 which would mean a 48% gain from today's close.
I also recommended watching DVN several weeks ago. It has lost over 7% from that date with little change in circumstances and so is looking more attractive than ever. However, it is risky to buy this security now, as it could easily fall further for scant reasons.
With Obama planning to sign the financial overhaul bill later this week, the markets should remain volatile for the foreseeable future. I will cover the long-term implications of this bill's passage later this week.
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