On Monday I offered my Slope Plus members a post called Plungers for Plus, which consisted of two lists of (painfully-constructed by me) symbols: one of them of precious metals miners, and another of energy companies. As I described it in the post:
By “plunger” I mean a stock which has been extremely beaten-down. I can’t necessarily say whether oil or gold has bottomed, but for those of you interested in some “lottery” (that is, highly speculative, but potentially very high percentage gainer) type plays, you should check these lists out and chart them on your own.
Well, some of these stocks have already ripped higher 40%, 50%, 70%, and maybe even more (I haven’t checked them all). This is the kind of bounce I was thinking might happen, but my hunch (and it’s just a hunch) is that the “easy” part of the bounce is done. Here are a couple of examples of what I mean:
That bottom one there, for instance, Comstock Resources, moved up nearly 70% today alone.
Unless gold and/or oil have begun important new bull markets of their own (which I doubt), I suspect we’ll ease back on some of these lottery plays (and maybe even simply resume the long-standing bear market they’ve all been in anyway). I’d feel more comfortable buying and holding such things if gold managed to get below $1,000 and oil withered down into the 30s.
Anyway, crazy day. I’m tired. I’ll see you in the morning!