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Thursday, March 5, 2009

Time for Lottery Tickets?

Question, do you believe the USA and the world is heading for a Mad-Max scenario?
If yes, watch gold, oil, resources as they declines, and buy some personal firearms. If you answer no, read on!

Since you don't think this is the "end of the world as you know it". Lets take a look at what has happened since summer of 08.

The stock market has fallen about 50%, and it is reasonable to believe some companies are cheaper than they should be. After all, not ALL companies are destined for bankruptcy. And even if many are, there may be some optimism before their final demise.

So lets take a look at some companies worth considering buying. Just throw $1,000 each at these companies, set 1/2 the shares to sell at 100% higher, and let the rest ride into retirement or a panic attack. :)

Also consider that the stock market is EXTREMELY over sold well below 200 day moving average. The market tends to close this gap over time. Of course, mad max may be on our doorstep, but that's your call. If you have cash, and want to gamble, with better odds than Atlantic City, some of these lottery tickets may be just the thing.

First, SPX (stock market index) Chart.

Now Alcoa(FAVORITE), Ford, GE, LVS, MGM, DRYS and a riskier play, Citibank

So look around, find a company "on the cheap". Buy some and sell 50% at 2x the price, let the rest ride. If we do get a rally, some of these stocks can easily double. Example. Ford from $1.87 to 3.60 is not hard to imagine. If you buy four lottery tickets, even if one hits, it should cover the other "losses". Lots of ifs here! I am more of a Mad-Max mindset, but NOTHING moves in a straight line.

Could also buy "small gold miners" as previously blogged here:
NOTE: Please see my disclaimer. All trading decisions are your own.

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