The stock market is fierce right now. Many on Wall Street are talking about how they’ve never seen a ride like this. Even the pros are having a tough time. But, is there money to be made?
I’ve been following Hovnanian Enterprises (Symbol: HOV) for some time and it’s been a trading bonanza of late. Just today, the stock dropped to $10.83 and then rose to a close of $12.57.
In after-hours trading, HOV dropped 7% to $11.68. Tomorrow could be another good day to trade this stock.
Just think, not too long ago Hovnanian was at $38.66. Like most homebuilders, it’s been hammered.
As you’ve seen from the above after-hours number, I wouldn’t own HOV after the close. But, it’s been a good intraday trade.
I wouldn’t play for big gains here. Anything more than a $1 gain is really pushing the envelope. Today, HOV dipped to $10.83 and then climbed to $13.50 just about two hours later.
And one hour after that, it was down almost $1.50 per share. It then spent the last hour rising about $0.50 per share.
Look at today’s pinball action in Hovnanian. It’s fantastic. I expect to see a bounce tomorrow—from the $11.68 price.
In a market like this, I think it’s best to really focus on a small handful of stocks and see if you can spot patterns. This is one time where I dial down the risk by waiting for more optimal conditions.
For instance, I might think that a stock has bounce potential at $11. But, I might know its bottom is $10. Whereas before I’d look to get in at $11 and play the bounce, today, I pass up “opportunities” and look for “safer” entry points.
My name is Jason A. Martin. I'm an investor/trader, financial writer and entrepreneur. This is my blog. I also run a social media integration & cross-media design company. If you'd like to follow me on twitter, here's the link: Jason A. Martin
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My name is Jason A. Martin and this is my investment blog. Back in Jr. High School I fell in love with an electrical wiring company's stock on Wall Street. After following the stock daily in the papers—the Internet wasn't around back then—I sent them a letter and they sent me back all sorts of wonderful information about their company.
In High School, we had a stock market contest. All the kids were picking companies that made stuff they consumed. When I announced my beloved company, I was laughed at. Little did they know that my company was going to be the subject of a takeover soon.
Long story short, I won the contest and have made money in the stock market, through real estate investing, currency trading and so forth.
I hope you enjoy Financial Rebel. If you do, please leave your comments and share this site with those you know.
Jason
2 Comments
Thank you for providing this stock pick information. I am regular stock traders as well as investor. Looking at the chart of Hovnanian Enterprises stock, i do agree with you. The stock seems to have good support at $11.
stock trading blogger
9/1/2007
This is a very interesting website.I want to get into day trading currency and wanted to know where or which website can i get this information.Thanks in advance.
daniel
9/17/2008
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