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October 22, 2007
Market Update
by Jack Lee
On Friday at the close of the market I announced that Monday would see an uptick as bargain hunters entered the scene. However, Monday opened with sellers pushing the market lower yet, despite the 266 point drop on Friday. But, by mid morning the bears gave way to the bulls as the market rebounded and closed higher across the board, thus fullfilling my Friday prediction,
DJ Indu 13,566.97 +44.95 Nasdaq Comp 2,753.93 +28.77 S&P 500 1,506.33 +5.70
Stocks to watch, SNCR which posted a minor .38 cent or .99% gain riding the momentum of the market. SNRC is in the oversold category but some downside is still expected. For the long term buy and hold it is probably not a bad price now, but for my money I want a further drop of about 2-3%. I think GM could see a pull back to $33 easily enough in the coming weeks. A possible short play after it crosses $38.25? Speaking of a short play, I have loved OMEX, but it's been swinging up and down recently and that has provided me with an opportunity to make money on the buy and sell. SHRP might be on the rebound, worth a look, it spiked today with a 15% gain. ITB could be the come back kid when the housing market gets it's second wind. Keep this one in mind, but be patient before buying. It's really low, but could be far lower by years end. May or June will tell us how the rest of the year will go for housing and it is likely to indicate a modest recovery has started. I'll let you know when I buy it. For a local stock watch DMND. It's too high at the moment for me to be interested and too strong to be a good short. However, any dip under $19.75 would be a reasonable buy in my book. DMND was down about .65 cents today to $20.65.
Remember, due your own due dilligence! Stock buying and selling carries a risk. You should not buy or sell based soley on my comments, this is just an opinion column.
Disclosure: I have a position in GM.
Do you have a stock question? Ask Jack
Posted by Post Scripts at October 22, 2007 02:25 PM