Stock Market Correction
I am not surprised about the selloff in the market today. Once Japan had their big one day drop it was bound to happen in the US market. I think oil has a role in today's decline, but I believe options expiration played a larger role in the drop. Plus everyone knows how most traders think. When something starts dropping they think it's going to zero, panic, and then sell. I don't think this a buying opportunity. Forward guidance for earnings needs to above expectations for the market to advance further. Gold, energy, select healthcare, and select technology stocks will be good longs in 2006.
posted by Big Ben at Friday, January 20, 2006
2 Comments:
Check out the Google options today. A ton of money lost there. Or if one had puts, a ton of money was made....
I would look at buying some Feb Google calls on Monday. Google looks oversold. I would sell the calls before earnings though.
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