Taking Advantage of a Day Off

January 19th, 2010 value investor 2 comments

A day off from US markets is a great opportunity. With the world being what it is markets are not entirely driven by internal factors. Use your day off today to read international business news. This news can certainly give you a heads up as to what you should expect from the markets in the next day. This trick helped me immensely during the early days of the credit crunch. Bad news would break crashing out European and Asian markets while US markets were closed for holidays- guessing what the US market would do the following day?

Today is a good day to look closely at the Google vs. China story. While China’s business accounts for very little of Google’s bottom line, as the story evolves we have certainly seen market fluctuations. Maybe today is a good day to setup a buy if you have been looking for some weakness, or maybe if you think the market will overreact to Google leaving China (if stories today point that way), and today is a good time to plan your exit from Google. Your call read the news and see what you think.

2 responses to “Taking Advantage of a Day Off”

Anonymous January 20th, 2010 at 01:37

“looking for some weakness, or maybe if you think the market will overreact to Google leaving China”

Wow you nailed that one… up over 1% today!

You should know by now, don’t time the market. Look for value and buy it when you find it.

value investor January 20th, 2010 at 04:48

Up 1.55% now- however it was down $9 early on. I’m sure you read the whole sentence though and could see I wasn’t recommending a buy or sell on GOOG.

To your point I would argue there is a difference between timing trades and pricing stock. If I think Google is worth say $400 I would be foolish to hold a liquid assets in a pending trade waiting for that price to arrive. However if the news had been all bad on the day off it might have been a smart move. That would be pricing, not timing no?

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