The recent downdraft in the stock market (not counting Tuesday) has been fierce and swift. But we live in a trading environment that rewards the investor ready for the wild swings and who is prepared to take advantage of them. I'm going to show you some simple rules for finding value in a market like the one we have now and how to avoid the stocks that won't perform.
I don't foresee another major sustainable move in the general market this year -- I had thought that our rally from the March '09 lows was overdone and the latest downdraft of close to 10% from those highs has been long overdue and necessary.
Yes, there is concern about sovereign debt in Greece and the possibility of that increased risk bleeding into Portugal, Spain, Ireland and even Italy. It is the possibilities of the latest Armageddon that create the quick selloffs like the one we've seen in the past several sessions. But it also provides the best opportunities.
I've picked out two stocks that demonstrate what I look for in selecting plays for a market that's undergone the kind of pressure selling we've seen recently. These stocks provide only the template, and it's always better when you've done your own homework and selected your own candidates. Most of these tricks are technical in nature and can apply to many stock sectors, although you need to know at least a little of the fundamental stories attached. You'll feel better picking out your own selections, too.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV