Super Stock Blog

Let's make our own bull run!

Tag: gm

Ford is Ready to Rumble

That’s right.  Cheap oil, low valuation, and nice dividend means Ford (F) is a great stock to own.  They have already released their F-150 aluminum and are getting great reviews.  Ford also has a bunch of other models coming out.  The best part is oil is cheap so its a great time for consumers to get new cars especially trucks.  With a 3.70% dividend, even the patient investor has time to just hold out until the stock moves up.

Technically, the stock has already broken resistance and it is in bullish territory.  If you haven’t look at Ford already, I recommend doing some due diligence and adding it to your portfolio.  I see much more growth in it versus its rival General Motors.

Missing out on the Great Deals

When the DOW went below 11,000, I should have taken that as a sign to put more cash into the stock market.  There were blue chips that were being rocked hard and taking a huge beating.  The four stocks particularly were Fannie Mae (FNM), Freddie Mac (FRE), General Motors (GM), and Ford (F).  These were all great short buy candidates and they all sky-rocketed at the end of this crazy week.

The early part of the week had the DOW hitting new lows.  Fannie Mae and Freddie Mac, two of the most renown mortgage loan companies, were stating they they had finally made too many foreclosed loans and they would have to find ways to establish funding.  These two companies are the life-line of 50% of America’s mortgages.  It would be a huge shame of they were to go under.  Stock prices dropped to less than $10 on each company as people started short selling to stock.  I knew these companies would eventually be funded by the government.  They will not let these companies take down the economy.  It would be a disaster in the United States’ economy.  I should have seen these signs and bought early.  Both of these stocks doubled at the end of the week.

The next two companies made a pretty fast drop this year to which one company hit a 50-time all year low and the other hit a low not seen for 20 years.  These are both America car companies that have been running since the beginning of the Industrial Revolution to which one had created the first car and the other, General Motors, has been a respectable car company building cars for the United States since the early beginnings.  These two were a harder speculation because oil could have kept going down.  Both of these stocks increased to 20% at the end of the week.

Dow to hit 10,000?

I am a serious believer in stock market manipulation.  This might be common sense or just my irrational thinking, but hedge funds are there to make money; therefore, it is easy for them to take money from the small guy.  This would include you, me, and any other small investor trying to be independent and cut those percentages going to mutual funds, ETFs, and the big investing companies.  As I watch inflation-proof stocks fall with the market, I can only believe the hedge funds are trying to get more and more investors to sell the holdings.  They want to cut out all the margin holders and force brokerage companies to force their investors to sell their stock or put in their cash to make up for their margin holdings.

These same hedge funds will either put the DOW down to 10,000, then put a massive amount of cash in the stock market making another big rally and making everyone look rich, or start buying sooner and put the market up again.  The stock market is bound to have bottomed out soon.  GM has already hit the lowest price in the last 50 years.  When the hedge funds have pushed it low enough, they will then start buying back their own stocks and move the market up to new levels that we have not seen yet.  Let’s see what happens today, and good luck to us all!