It was late June when the above chart was analyzed and since that time the market has shed 4,000 points. (Click on the chart to read the warning article.)
October 10, 2008
Two words come to mind following the historic action on wall street this past week. The first is oversold, and the latter is bargains. Two such examples are Ebay $16.73 (EBAY), and Adobe $27.12 (ADBE) as of close on Friday October 10, 2008. These two companies are prime examples of across the board slashing experienced on wall street. Neither of the aforementioned companies are credit dependent. In other words, they don't need credit to operate, and their consumers don't need credit to buy their products which is the core problem in the economy. In many ways, these two companies are immune from the current credit dilemma. Yes, I am aware this is a penny stock site and therefore penny stocks should be the main focus however bargains are bargains.
Ebay has been negatively impacted by engaging in exactly what a company of their stature should be doing in this environment, seeking acquisition targets. No better time than now to acquire some fresh technology. After all, Ebay did acquire PayPal years back and who can argue that acquisition? But, acquisitions always have a negative short-term impact as they corrode earnings temporarily thus dropping Ebay down to $15.00 per share at one moment on Friday.
Adobe on the other hand with their web application monopoly has the Creative Studio 4 product release set for mid-November. The CS4 package is truly a must have for those involved in web applications. The demand for CS4 will be down but it certainly will sell. Check out the Adobe website and witness the limitless potential of CS4, it sells itself.
The 10,000 Dow magnet. All investors need to think of this significant psychological level indefinitely. The Dow will most likely bounce around from 8,700 to 10,200 from the next several months. Buying as far South of 10,000 as possible may prove to be the best strategy for quite a while. Profit taking just North of 10,000 is a must in order to avoid exposure on the inevitable volatile dips.
No, it's not time to jump back in the market with reckless abandon. If you have $10,000 set aside for stocks, now is the time to consider investing a grand.
|
