Double Journey

Only a quick post.  This is a very very busy week for me, so I doubt I will write much this week other than to make quick post on my current thinking.

Right now, I’ve been waiting for the pullback I was sure was going to happen.  I think we have probably reached a bottom a week ago.  However, the market bounced hard back up, and I didn’t think it was the right time to buy either.  But now that the market pulled back a little bit, I will probably look to buy tomorrow so long as the market doesn’t do anything nuts tomorrow.

If I buy, I will buy Novartis and Diageo.   I want to be in the drug and consumer staple large cap space right now.  Things that should survive even in a down economy.   To hedge, I will short the S&P even more than I currently am.
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GameStop (GME) is set to announce guidance tomorrow. The stock has been killed the last few days on relatively no news. It has been down with the rest of the market as people are fleeing almost anything retail and connected to the consumer. However, I strongly believe that GameStop had a fantastic holiday and their guidance will look good. This should provide great stock price movement tomorrow. Be warned, if Gamestop comes out with bad news, this stock is going to come down. I just think you have more upside than downside at this point. If I can get in before the announcement, which is doubtful considering when I get up in the morning, I’ll look at getting in. It closed at $55.11 today, and I think you might have $7 or $8 of upside, maybe $4 of downside right here.
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Today, it was announced that Howard Schulz would retake the helm as CEO of Starbucks.

The stock is on a free fall for the last year.  Just take a look at the chart

See how the chart moves in almost a straight line down to the right?  This is a VERY UGLY chart.  Yes, it is Janet Reno ugly.  But I think the trend is over.  There is no technical reason that it should be, at least not yet, but I think that Schulz taking over now puts a bottom in the stock.  I hate calling bottoms, but in this case I would.  The stock should open up significantly, it is above $20 in afterhours trading.  I wouldn’t get in at the bell, the stock will pull back in the morning, but I would watch the stock carefully over the next day or two.  If it can put a few good days together, than this sets up nicely for a good trade.
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Only a quick post for now. Will elaborate later tonight. Just got back from Seattle and completed my move. Moving is hard. I don’t even have that much stuff, I had the movers pack my stuff, and I still feel pretty wiped out from the whole experience.

One stock I think I may do for 2008 is Polycom, the makers of conferencing technology. I really think this is a great growth sector, and the stock looks kind of cheap now. Don’t know if it is the right dime to buy right now, it’s been on a downward trend as of late, but I like the growth story. Will do some research later tonight and write it up.
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are a few great stocks. I’ve started my wish list where I will put all the stocks that I’m actually interested in buying. I might buy one out of ten stocks, but it will give you an idea of what I’m thinking. I’ll update it regularly so check on it often. One of my goals this holiday was to figure out what stocks I was going to buy for this journey. Thus far, I haven’t identified any, and have only listed some good long term plays. I’ll continue to plow through some ideas that I have and hopefully come up with a good play for tomorrow or later this week.

Hope everyone is having a good holiday. If you want to get me a gift I really need some short term trade ideas.
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