Look Out for More Recession News to Quell Panic Rally Written By: David Neubert 2008-03-24 13:43:57 Today the Chicago Fed released notes on the economy showing a decrease in U.S. economic activity to the lowest level in five years. This indicates the recession may have already begun. Watch for more recession news to end this stock market rally as analysts look for earnings decline. I'm taking some profits on some of my financials into this rally a bit while nibbling at long term bargains like United Technologies (UTX - $69.77) and Apple (AAPL - $139.40). I think I'll have a chance to buy UTX and other industrials in the next few months at better prices as well.
Disclosure: I own UTX. I sold half my position in both FNM and FRE last Thursday. I own AAPL and added to the position today and last week. I may write some short term out of the money calls (160-170) against AAPL if it continues to rally above 140.
Good: I'm getting the opportunity to buy quality companies and cheap-long term prices. Recent buys include Proctor and Gamble (PG - $63.38), Pepsi (PEP - $64.55), Coca Cola (KO - $51.00), General Electric (GE - $27.10) and United Technologies (UTX - $60.38)
Bad: My bet on oil stocks isn't paying off the way I had hoped in this rising oil market.
