We just saw a fairly gloomy week unfold, but maybe Friday provided a glimmer of hope. Not only did the market seem to recover, but it may have bottomed near a longer-term uptrend line. I remain bullish and would much rather be buying now than selling.
I wanted to revisit Apple (NASDAQ:AAPL) from a few weeks ago, as I noted it was time to start buying. But, I also said you needed to be prepared to buy MORE if it dropped another 15%. That happened Friday and the lows it achieved midday provided an opportunity to further bulk up your portfolio. The conventional wisdom is to never double down or add more to a declining stock. However, I do the opposite if I firmly believe in the company and use their products. In fact, completely bucking popular opinion, I double down on my initial purchase when the stock drops another 15%. (That price was roughly $505, which it hit on Friday.)
You have to be patient, of course, but now my breakeven on AAPL is $535. Heck, you could see that Monday morning.
Finally, Zynga’s (NASDAQ:ZNGA) been in the news, and I’d be a buyer. It looks like it broke a very long downtrend line, and you have a low-risk purchase as the support is near by.
Again, I’m bullish on the market right now. Let’s see how the remaining six weeks of 2012 unfold.