President Obama rejected another bailout for GM and Chrysler and He gives two options for these companies either to quicken their stimulus plan for recovering or to fill out for the bankruptcy. This statement brings DOW JONES down to 7,522.02 (-3.27%) and cause the market was panic with high pressure selling.
What we can do as short term trader is we look at Sector Rotation that nearly get impacted by financial crisis. Take a look at Housing Construction with XHB, ETF for housing builder it moves quite significant during march trading. For the stock, we can take a look at: KBH, TOL, so on.
One of the reason is home price got beaten so badly and for those who have deep money pocket, they just buy and buy more houses for investing since the price is undervalue. Undervalue is sold in the market below the fair value or cost that build the houses.
Personally, I would enter the market once the XHB break above the resistance, resistance is becoming the support so I might wait for few days to enter and when to exit is when the candle attempts to hit the next resistance.
Good luck and save trading
To learn more how to make consistently profit on bearish market
No comments:
Post a Comment