The Pullback Has Begun!

As expected the stock market is starting a correction today. The markets ended at the day’s low and looks to open lower on Tuesday. Since our recommendation to sell banks on Thursday May 7th, 2009, it looks like several news agency are jumping on the bandwagon. We have a few links listed below to stories that are of interest.

• Jeff Cox, CNBC.COM Stock Pullbacks Then and Now: Is History About to Repeat Itself?
• I Would Not Own Bank Stocks: Meredith Whitney “At a core basis, I would not own these stocks, “Whitney said in a live interview on CNBC.  ”Their business models are not going to come back.”
• New York Times - Citigroup: TARP Loans Near $45 Billion Mark

Today’s pullback seems limited to the Dow and financials.  We expect to see a correction in the other industries also in the near term.  We are expecting to see atleast another 150 to 250 point loss on the DOW and approximately 50 to 80 points on the NASDAQ.  

We will be watching the market carefully on Tuesday and will consider taking some profits on the stocks we have recommended previously if “Panic Mode” hits the stock market. There are no stock picks today as the market is looking bearish at the moment. After Tuesday’s close, we will reevaluate and consider adding additional stock picks.

We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.