This week I thought I’d continue with a theme I started last week, where I looked at stocks I’m buying myself.
But first, a look at the market, and despite all the whining about the selloff, I still don’t see that the market has incurred any serious damage. Instead, I see a logical retreat to support and overall sideways movement. This type of action is typical after a run-up like we had earlier this year, and actually bodes well for a future upside move later this year. In other words, I’m bullish.
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Now, as for stocks I’m buying, let’s revisit my theme of “buying what you know.” The first stock has seen a pullback recently, but I never see a store empty, and the uptrend is intact. It’s my old favorite, McDonald’s (NYSE:MCD).
The second stock is one of the two brokers I use. People think you have to be fancy when you trade, but I find Ameritrade (NASDAQ:AMTD) works out just fine. Fast fills, low prices, and since I use limit orders to enter and exit, I can’t complain about my fill quality. So, per my theme: if I’m a user of the company, I usually like the stock on a dip. AMTD has certainly seen that.
I guess my overall theme, then, is to use the news to your benefit, especially if you really like a company. As long as you’re patient, you can make some decent profits in the long run.