Yesterday I posted about a stock called HydroGen and how there was strong buying with volume, on the back of no new news. When a stock has already put on a 10 bag return in the space of a week the chances of it continuing to run higher are slim but I thought and I still think something is going on.
Last night we got hit with the big NO vote from the House of Representatives and the whole market went to water along with my tip HYDG. I mentioned from the start that it was a high risk trade and seeing that it had already put on 10 bags in the space of a week, it was ripe for a correction but I though and still do think that there may actually be something in the recent rally. We will have to wait and see.
Anyway moving onto my next tip I was sitting back and watching a CNBC webcast with a bloke called Jim Cramer discussing the current turmoil in the market and US banks in particular. He continually referred to an Ohio based bank being in trouble but he made it a point not to mention the name as I guess any mention would probably cause a run.
My guess is that he was referring to National City Corp and boy did that bank get smashed yesterday with a 63% drop closing at $1.63.
On the back of the carnage that was witnessed in the US our local market in Australia opened at a massive discount. In particular the local financial stocks that are on the nose had the heftiest discounts on open, but throughout the day they all rallied hard and those who were brave enough to jump on early did good.
So having seeing a nice bounce from the stricken financial stocks in Australia, I reckon we might see a bounce in NCC today. Whether or not this bank goes under or not is yet to be determined. In this article management stated that they had sufficient capital.
For the brave this appears to be a good trading opportunity to me.
Remember that this is a high risk suggestion so don't go throwing grandma's savings account at it.
Good luck if you buy.
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