The action on Wall Street was not very impressive today. I'd like to see the bulls step in a bit more and take this market higher, but there doesn't seem to be enough to compell them to step in at this level. Any entries into the market at this time should be carefully scrutinized. Without a convergence of buyers, your capital won't be well spent.
Still, though, it's always good to build a watch list of good quality stocks. When the market is ready to move higher, you'll be ready to make an entry with some solid picks.
One of the stocks on your list should be Coca-Cola (KO). There's a number of good reasons to pick this one up. It did lead the market today, but you can still pick it up at a discount to the 50-day MA. It's trading around $54. The only reason it's discounted is because of the proposed acquisition of the bottler. That won't stop KO from charging ahead. They offer healthy growth prospects overseas (think China) and they've got a great dividend yield (3.3%).
If you believe that the economy is going to grow at an anemic pace this year (like maybe, 2%), then your portfolio should have solid stocks like KO in it. Hey, at least you'll be getting paid while we trudge through this recession.
Check it out and let me know what you think -- feel free to post a comment.
Obligatory disclaimer: Past results do not guarantee future performance. The suggestions above are simply suggestions and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Happy Trading!
Queen of Charts
Thursday, March 4, 2010
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