I see the Fed cutting tomorrow by 50 Basis points. My worries is that the 50 basis points are already factored into the market so we will not experience some sort of huge push up. We will most likely be anywhere from 30 down to 30 up come 1:15 Central time and we will go up to 100 after the announcement. IF hell freezes over and the fed cuts by 25 points this market will plunge to 300 down at least and if they didn't cut at all we would be looking a 500-600 point drop right in the eye.
Let me say this: With any fed cut the places to be are FINANCIAL, RETAIL, INDUSTRIAL!
This means Financial stocks like ETFC, IFC, CFC, GS, C, BAC,BBX, WFC, CS, and WM. This means Retail stocks like UA, LULU, ZQK(quick silver), DELT, and ICON and Industrial stocks like BA, NSC, and PLPC.
With all this being said. Here are my top 5 picks to play for a 50 point cut tomorrow:
1. ETFC - This stock seems poised to come back, I have doubted it every step of the way but I am starting to believe slowly. One thing for sure is that investors are banking on a 50 point cut for Etrade. If they get it this stock could storm upwards to maybe 10%, without it, they are looking the low 3 dollar range again.
2. IFC - As ETFC, this one was mentioned above. IFC is a company who has taken a huge hit in the subprime mortgage mess, and has been fighting to come back. A healthy fed cut of 50 basis points will make this thing rise over 10% I believe. It is up 2% after hours so get in early. This stock is also heavily shorted, 26% of total shares out, which means if the fed cuts there should be a short squeeze which could push this stock WAY WAY up.
3. LULU - The stock has been beaten up for the last 4 months but with a fed cut, people spend more money and LULU makes more money. LULU is undervalued and is oversold, they deserve to be around the 35 dollar price mark and with a fed cut they might get there.
4. JRJC - If you don't know what JRJC is, it is a Chinese online bank which has lost a fortune and recently made back a fortune in the sub prime mess. This is a risky pick but if the fed cuts and keeps on cutting this stock is going to keep coming back. It scares me it has come back so fast so far, but I am holding out faith that it can keep on coming.
5. DE - This is my top Industrial/Ag pick for the Fed Cut. If and when the Fed Cuts I expect the stock to jump 6%.
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17 comments:
is there a reason you are short changing yourself in these stock picks, you seem to take the worse price even if its higher when you post? Why handicapp yourself>
Fed aint going to cut after these durable goods numbers
We will see if youa re rigjht
4/5 Is pretty damn good man
where do you see these stocks going now?
ETFC still going up you think?
Nice calls bro
nice call on DE FAG. IN ReD
Forgot the last guy, he doesnt know a damn thing. keep going Bull
IFC up huge again man, glad I played it
John Deere aint doing shit, why the fuck did you pick you it? Down 24k on it man
Give him a break, he picks 4 out of 5 huge and you are bithcing about a stockd own 1%. Get a clue
I am bitching because I am losing money jackass
who called the broker or pressed the button to buy? The Bull or you?
go fuck yourself
Great calls with retial and finance
where do you see these comapnies going into the future?
Boxers or briefs?
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