So long as you were not holding a bushel of stocks, today is a great day for traders since it opens the door to some easy money. When good, solid stocks crater because the overall market is falling, it’s as terrific times to start buying?
So what should you buy so you’re prepared for runup before the week’s over? Well, I’m picking on a couple of my old favorites.
Wynn Casino
Try to get into WYNN at less than 68 today (Wednesday) and ride this up to 71+ within the next few trading days. Maybe more.
Why Wynn? Because it will likely make a big bounce (4%+) since its beta is 2.9, meaning it behaves like a Wham-O superball bouncing higher (or lower) than the indexes, like the Dow. That is, 2.9 times higher than say the Dow might rise.
Moreover, it’s been behaving with a volatility that makes traders’ hearts beat faster than if they were cuddled up with their favorite hunk, male or female.
My prediction is: Buy at the close; sell when it reaches 71 and change.
Apple: The Everyman’s Digital Device Maker
My second choice is AAPL. Actually, I’ve already jumped into this trade at 210 and change and don’t expect it to close much lower than my point of entry. Why will this stock bounce back? Well, it hit 215 today and I expect, at minimum, it to return to that level when the indexes right themselves. Actually, I’m looking for AAPL to storm past it when earnings are announced Monday. But beware, my friends. Although I’m expecting a nice pop for earnings I’m getting out (or reducing my holdings) before they announce their iSlate or iTablet, or whatever they dub this new product they’ve been leaking information about for months.
That announce comes Wednesday, if I’m not mistaken. I’m guessing this new device will be little more than a glorified netbook at double or triple the cost and will draw polite applause at the Wednesday meeting. Share price, on the other hand, is likely to fall (buy on the rumor; sell on the news).
Anyway, let’s see if you can earn a few thousand bucks. Perhaps enough to runaway to Europe (Yikes! The Euro is less than $1.41) for a week or so.
In any event, buying today will position you for smaller losses, whatever the outcome. But my guess is you’ll be able to clean up and then take a few days off to bum around Europe. Is that OK?
Charlie the RT
Apple is going to crash on earnings. And don’t expect Wynns to do any better. Your money is better off in cd’s., IMHO.