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 10 BARGAINS TO BUY IN A MARKET CORRECTION

 

To maximize gains, to minimize risks and to understand terminology,  please see ZYX Change Method Trade Management Guidelines.
Once you understand this superior way of trading and investing, you will never go back to any other method. Please be patient, in the beginning it takes a little while to get the hang of this superior method.
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
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:             $43.53 - $47.76
Target Zone:         $58.00 - $63.00
Stop Zone:            $26.11 - $27.88
Potential entry points within the buy zone:  $43.53, $44.11, $45.36, and $47.76.
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 - $17.83
Target Zone:         $30.00 - $33.00
Stop Zone:            $9.00  -   $9.23
Potential entry points within the buy zone: $15.67, $16.14, $16.66, and $17.53.
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:             $14.00 - $15.77

Target Zone:         $19.00 - $21.00
Stop Zone:             $7.09  - $7.48
Potential entry points within the buy zone:  $14.02, $14.52, $15.11, and $15.36.
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  -  $9.16
Target Zone:         $16.00 - $18.00
Stop Zone:             $ 6.00  - $6.23
Potential entry points within the buy zone: $8.13, $8.26, $8.54, and $9.02.

MOSAIC (MOS)

This company is the largest combined producer of phosphate and potash fertilizers in the world.. 

The catalyst will be the resolution of Russian and Ukrainian conflict.

Buy Zone:             $35.00 - $47.11
Target Zone:         $68.00 - $85.00
Stop Zone:            $23.00 - $27.43
Potential entry points within the buy zone: $39.26, $40.52, $44.02, and $45.50.
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:             $32.52 - $36.25
Target Zone:         $84.00 - $96.00
Stop Zone:            $23.08 - $24.43
Potential entry points within the buy zo
ne: $32.52, $33.11, $34.11, and $36.24.
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:             $38.36 - $47.52
Target Zone:         $63.00 - $68.00
Stop Zone:            $23.00 - 23.34
Potential entry points within the buy zone: $39.61, $40.31, $44.11, and $45.26.
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:             $47.00 - $51.11
Target Zone:         $80.00 - $100.00
Stop Zone:            $34.00 - $34.73
Potential entry points within the buy zone: $47.02, $48.11, $48.56, and $50.63.
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:               $29.00 - 31.62

Target Zone:           $62.00 - 68.00
Stop Zone:              $24.32 - 24.48
Potential entry points within the buy zone: $29.62, $29.92, $30.11, and $30.66.
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:             $54.00 - $57.26
Target Zone:         $78.00 - $80.00
Stop Zone:            $34.00 - $35.73
Potential entry points within the buy zone:  $54.56, $55.02, $56.02, and $57.26.
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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