I don’t normally call for an exact time to buy or sell a stock, but these “boring markets” are just asking for it.
The longer and longer we spiral into this circular stock market, the easier it is to guess what the markets will do. With AK Steel (AKS) reporting earnings today, we can pretty much assume what will happen:
Earnings will be low, outlook will be screwy and the stock will go down. Nowadays, it seems like the numbers reported don’t even matter. Instead, traders are putting more emphasis on what the head bosses say. Think of it like a math problem. We are all to believe 2+2 = 4, but the head boss at the math institution suddenly says its 5. If we were all traders, then we would probably believe it.
AKS is still high on my stocks to buy in 2009 and if you have not bought any shares yet, then earnings should give you a great opportunity. Let the stock suffer for a while, and then pounce on it. Remember we are going on a year’s recommendation, so we estimate it to be better than where it even stands before earnings are reported.
Then again, the head bosses could say something good and the stock goes up…
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