Dow Down 200+, A Few Stocks I’m Watching
The stock market was slammed today after S&P downgraded the sovereign debt of Greece and Portugal. For those of us waiting for a correction for some time now, this is an interesting day. Now the question becomes whether this is the start of a larger correction or just a speed bump. For months now, these types of days have been nothing more than speed bumps.
A Few Stocks I’m Watching
Philip Morris Int’l (PM)
Since being forced to sell my shares at $50/share due to my covered calls play earlier this year, I’m watching as this stock becomes a more attractive buy. I’ve sold puts with a June $46 strike price, so there is a possibility that I’ll be forced to buy shares at $46 should PM be at or below this strike at the expiration date in June. Of course, I’m completely fine with this since I love the stock and the dividend, and have already sold the same shares at $50. Whether or not these shares hit the strike price according to the expiration date doesn’t matter as I see PM definitely having more attractive buying opportunities in the future. PM closed today at $48.44.
Amazon.com, Inc. (AMZN)
Amazon took a hit today and closed the day at $142.02. I shorted this stock at $149ish the other day after they took a beating after announcing less than enthusiastic guidance. Of course, shorting AMZN over the last year has been a terrible strategy, so I will unload this position on any move over $150. I continue to believe that AMZN (and other high flyers) HAS to correct at some point. Whether the time is now or not, I don’t know.
Brunswick Corp (BC)
This stock has been skyrocketing over the last couple months and almost hit $20 a share recently. Rumors are that the consumer is RE-LEVERAGING so stocks like this one will do well with such a development. I’m still skeptical. I’m looking to short this stock, but want it to cross back south of $18 a share first. It closed today at $18.27
Today was interesting, but we’ll need to string more days like this together before anything gets really interesting. If you wonder why it sounds like I want the market to go down, well, the answer is I do. Why? Because I want to invest capital into attractive opportunities and with the market so high, I just don’t see attractive opportunities. Remember, I’m young. I can afford to be patient and allocate capital during attractive opportunities.
The only stocks I’m buying continuously, regardless of price action, right now are McDonalds (MCD) and Wal-Mart (WMT). Both of which I have DRIP plans going where a small amount of money is automatically invested each month and dividends are auto-reinvested.