Sunday, January 11, 2009

What to add to your portfolio on a market pullback?

I bought Apple Computer a few weeks ago, symbol AAPL, at $86.50 and the stock rose in anticipation of Mac World, to about $93 but has pulled back to $90/share on Friday. If the market drops again, as I anticipate it will, I would recommend either buying the stock or adding to your current position. I am looking to buy more shares anywhere around $86 or lower, if possible.

Hold on to the ETF Ultra Short of the S&P500, symbol SDS and TZA, the ETF Ultra Short of Small Caps. These shares should start to rise with a market pullback. SDS closed Friday at $71.95 and TZA closed at $51.25 and is up in pre-market futures this evening.

UPDATE: Jan. 12 5:00am PST

3 Month Libor rates are now at a new recent low of 1.16%. Hard to believe with numbers as low as this that there is still tight credit, but the fact still remains, either credit is tight or people aren't wanting to borrow and no amount of available funds is going to change that, until investors psychology turns from fear to greed.

European markets are also down in pre-market.

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