Corrections in the stock market are inevitable. Smart
investors take advantage of the corrections to buy bargains.
Here are the 10 best bargains to pick up in a correction.
Following are the common characteristics of these 10 stocks:
- They all have at least one catalyst for price
appreciation in the near future even in a down market.
- They are all relatively inexpensive even at the
present price
- They all can go on 20 - 40% sale in an overall market
correction
- They all are likely to meet at least five of the six
screens of the
ZYX Change Method when the price moves to the Buy
Zone
- They all are likely to move up sharply in the inevitable
overall market recovery.
- They all allow for reasonable stop zones.
- They together form a diversified model portfolio
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| AMERICAN INTERNATIONAL GROUP (AIG) |
 AIG is an international insurance organization. During the financial
crisis, AIG almost went bankrupt and survived because of aide
from the government. Now the company has been restructured and
is likely to be very profitable for years to come.
The catalyst behind a stock move will be wider recognition of
the strengths of this restructured company.
Buy
Zone: $32.26 - $38.76
Target Zone: $48.00 - $55.00
Stop
Zone: $26.11 - $27.88
Potential entry points within
the buy zone: $36.26, $37.52, $38.11, and $38.76.
|
| FIRST TRUST ISE-REVERE NATURAL GAS IDX (FCG) |
|
 FCG
represents natural gas exploration and production equities.
This position benefits from natural gas stocks going up.
The catalyst is expanded use of natural gas in the United
States.
Buy Zone: $14.00
- $15.87
Target Zone:
$30.00 - $33.00
Stop Zone: $9.00 -
$9.23
Potential entry points within the buy
zone: $14.10, $14.42, $14.76, and $15.52..
|
| THE BANK OF
AMERICA (BAC) |
The company is one of the largest banks in the United
States. 
The catalysts behind a stock move will be
increasing recognition that the
problems from the financial crisis time are getting resolved.
Buy Zone: $9.00 - $11.31
Target
Zone: $16.00 - $18.00
Stop Zone: $7.09 - $7.48
Potential entry points within the buy
zone: $9.14, $9.76, $10.38, and $10.61.
|
| JAPAN SMALLER CAPITALIZATION FUND (JOF) |
|
 JOF
is a Japanese Small Cap ETF. The fund invests in
the public equity markets of Japan. It invests in stocks traded
on the Tokyo, Osaka and Nagoya Stock Exchanges, JASDAQ, Mothers,
Hercules, Centrex, and other indices. The fund seeks to invest
in stocks of companies operating across diversified sectors. It
primarily invests in stocks of small cap companies.
The catalyst is Japan getting out of deflationary spiral after
two decades.
Buy Zone: $
7.62 - $9.02
Target Zone: $16.00 - $18.00
Stop Zone: $ 6.00 - $6.23
Potential entry points within the buy zone: $7.82, $8.13, $8.26,
and $8.54.
|
| CISCO SYSTEMS (CSCO) |
 This
company is the largest networking equipment company in the
world.
The catalyst will be better cost controls and restructuring of
the company. .
Buy Zone: $20.26 - $21.62
Target Zone: $34.00 - $38.00
Stop Zone: $17.30
- $17.43
Potential entry points within the buy
zone: $20.26, $20.76, $21.11, and $21.62. |
| SPDR STOXX EUROPE 50 (FEU) |
 This
is an ETF that represents the largest 50 companies in Europe.
The catalysts will be a recognition that all of these companies
are domiciled in Europe, most of their growth is coming from
emerging markets.
Buy Zone: $30.00 - $34.52
Target Zone: $84.00 - $96.00
Stop Zone: $23.08
- $24.43
Potential entry points within the buy zone:
$30.11, $31.52, $32.26, and $33.16.
|
| HALLIBURTON COMPANY (HAL) |
 The
company is an international oil and gas service firm.
The catalysts will be increasing expense
on oil and gas exploration.
Buy Zone: $33.11
- $37.62
Target Zone: $63.00 - $68.00
Stop Zone: $23.00
- 23.34
Potential entry points within the buy zone: $33.52, $34.18,
$35.32, and $36.61.
|
| RED HAT (RHT) |
 The
company is one of the largest providers of open source
Linux software, virtualization systems, and cloud infrastructure
systems.
The catalyst will be increasing
migration to the cloud.
Buy Zone: $39.00 - $45.10
Target Zone: $80.00 - $100.00
Stop Zone: $34.00 - $34.73
Potential entry points within the buy zone: $41.26, $42.53,
$44.11, and $45.10.
|
| PRO
SHARES SHORT 20+ YEAR TREASURY (TBF)
|
 TBF
is an inverse U. S. Treasury Bond ETF. At this time, this
is the best and lowest cost protection against future inflation.
The catalysts will be inflation, rising interest rates, and
economic growth in the United States.
Buy Zone: $27.60
- 29.37
Target
Zone: $62.00
- 68.00
Stop Zone: $24.32 - 24.48
Potential entry points within the buy zone: $28.32,
$28.56, $29.02, and $29.37.
|
| WALGREEN CO (WAG) |
 This is a
large drug store chain.
The catalyst will be a recognition that it correctly
bought a large drug chain in Europe at the lowest point
in the cycle.
Buy Zone: $38.11
- $42.76
Target Zone: $54.00 -
$58.00
Stop Zone: $34.00 - $35.73
Potential entry points within the buy zone:
$38.26, $39.38,
$40.11, and $41.52.
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| CRADLE TO GRAVE FOLLOW UP |
ZYX
Buy Change Alert is following these 10 stocks from cradle to
grave i.e., from the first buy to the very last sell.
Markets are very dynamic and volatile these days. Merits of an
investment can change in the blink of an eye based on news, new
data , or shift in sentiment as well as macro conditions.
The Real Time Feed of the ZYX Buy Change Alert provides updates
in real time as the conditions change. |
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