Tuesday, May 30, 2006

Bloody Tuesday

Blood all over... the market dropped precipitously today. Market breadth numbers indicate that the negativity was pretty widespread. Advancers outpaced decliners by more than a 3 to 1 margin. On a volume basis, it was closer to 4 to 1. All sectors were down over a percent today.

Several things really hurt us: Wal-mart, Energy Prices, continued weakness in the dollar, and a large drop in Consumer Confidence.

Am I sickened? Yes. Am I panicking? Not yet.

All large bullish moves in the market will be met with the occasional pullback or correction. This recent correction has been a big one... the Nasdaq is off roughly 9% since we peaked in mid-April. Time to keep your eyes open for some bargain-hunting.

On my 'potential buy list' are:

Movado (MOV) - Sub-$18
Deb Shops (DEBS) - Sub-$28
Shinhan Financial - $80-83
Value Line (VALU) - $40
Moody's (MCO) - $50-52 (it's pretty much there, so I might start nibbling soon)

That's all for now.

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