Time to make a shopping list

The time for the market to rise significantly is near. We still probably have some more downside to go but we have seen significant price depreciation and markets do not go down in a straight line. It is high time to be ready with a shopping list of great stock buys. When the market makes its next move up I am currently watching in no particular order...

• ETFs

Double long ETFs or shorting double short ETFs. QLD, SSO, UWM, etc. These are for trades only (even if those trades last a while). For more on this check out the post on the ETFs as double edged samurai's to insure you understand some of the risks. Note that long ETFs do not have the 'price asymmetry' that I discuss on that post that occurs with inverse ones but the double ETFs still have the rebalancing issue so this is something to be aware of. That makes them great trading vehicles but some profits should be taken if they run too much.

• Commodities

Commodities and commodity stocks typically go up this time of year... there has been recent signs of fertilizers, coal (ANR), and some others doing well. Also we could look at sector ETFs like DIG and UYM and XLB

• Short Squeezes

Some sectors, like financials and real estate, may be good for some high risk, high reward squeezes. A short of SKF, for example, could yield nice results if there is strong risk management
Also... the dry bulks, they do have big problems but some of them like DSX are better than others and even the ones in the mire like DRYS may get a nice squeeze at these prices

• Strong Stocks with good earnings that have been held back by the market

This may be my favorite category. Stocks that have gapped up on a good earnings or have moved nicely when the market didn't sell off, have strong balance sheets, and generally look good but have sold off due to the market are likely to be some of the strongest performers in an extended rally in the markets.

• Cheap stocks with strong balance sheets.

Buy low and sell high. Hey this does work when everything's been sold off... as long as the company isn't in danger of bankruptcy or nationalization. I like to screen stocks in the $1 to $15 range with good fundamentals and a reason to move. We will get some doublings and even triplings in some names in a strong bear market rally. This is OPPORTUNITY with a capital O.

• Lottery picks

I generally stay away from these but every once in a while you get a penny stock that will either go bankrupt or double/triple and is worth a look. With the recent offer from Liberty SIRI is definitely worth a look for amounts that you can afford to lose... at .14 this may be appealing...

If you have anything you may like in these categories or other please post.
More on this another time perhaps. There are many smart and free-thinking individuals that read this blog and this a time where we can leverage that for everyone... Getting in early is a key to success... as I mentioned recently.......


"The Yellow Rose Street Beat" is for informational purposes only. It does not give investment advice.