NO...........do not look up for a company with a ticker symbol DIP....
I am looking for a dip in the construction sector for the following companies: BZH HOV KBH
All of those 3 companies are now in overbought territory and could correct a 3-6% opening the door to another very good trend up.
Those 3 companies are to continue they strech for another 10-15% due to the very agressive move from Bernanke and if it is combined with some very good results and great outlook on the coming earning releases, i can't see what would stop them from another leg up for 15-20% , if not more, before year end depending of market overall condition.
At this stage, i would even think that construction stocks are now a defensive play and that they will continue to perform relatively nicely even if market was to correct severely trying to re-test the 1400 level on the S&P.
So i will take another bit of profit today if those companies stay above friday level where they closed at about 3% lower than their actual high of Friday. I will now supposed that the level they could reach, before correcting, is their last friday high.
For BZH it would be 3,92$
For HOV it would be 4,02$
For KBH it would be 13,63 as they closed at their highest level of the day being an exception.
So anything above these levels is a signal to take in some more profit awaiting the dip. Remember that if you have for example 2000 shares of BZH and you sell them at 3,95$ to buy them back at 3,85$ you just made 200$ in profit and could be re-invested in more shares of BZH awaiting the next up cycle to increase your profit.
To protect your investment, do not play with all your shares...keep a core (so this way if your thinking was wrong and shares continue to climb you will still make more profit) and then sell some to buy back later trying to time a bit the market and lower your overall investment cost. Whenever you do that, make sure that the company fundamentals have not changed as otherwise you could end up trying to catch a falling knife and most of the time you lose.
As usual DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.
Get THE PLAY OF THE DAY on Twitter : @investman2
I am looking for a dip in the construction sector for the following companies: BZH HOV KBH
All of those 3 companies are now in overbought territory and could correct a 3-6% opening the door to another very good trend up.
Those 3 companies are to continue they strech for another 10-15% due to the very agressive move from Bernanke and if it is combined with some very good results and great outlook on the coming earning releases, i can't see what would stop them from another leg up for 15-20% , if not more, before year end depending of market overall condition.
At this stage, i would even think that construction stocks are now a defensive play and that they will continue to perform relatively nicely even if market was to correct severely trying to re-test the 1400 level on the S&P.
So i will take another bit of profit today if those companies stay above friday level where they closed at about 3% lower than their actual high of Friday. I will now supposed that the level they could reach, before correcting, is their last friday high.
For BZH it would be 3,92$
For HOV it would be 4,02$
For KBH it would be 13,63 as they closed at their highest level of the day being an exception.
So anything above these levels is a signal to take in some more profit awaiting the dip. Remember that if you have for example 2000 shares of BZH and you sell them at 3,95$ to buy them back at 3,85$ you just made 200$ in profit and could be re-invested in more shares of BZH awaiting the next up cycle to increase your profit.
To protect your investment, do not play with all your shares...keep a core (so this way if your thinking was wrong and shares continue to climb you will still make more profit) and then sell some to buy back later trying to time a bit the market and lower your overall investment cost. Whenever you do that, make sure that the company fundamentals have not changed as otherwise you could end up trying to catch a falling knife and most of the time you lose.
As usual DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.
Get THE PLAY OF THE DAY on Twitter : @investman2
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