We have remarked that  some years from now that our readers will tell their grandchildren — yes kids, grandpa bought (F, C, BAC) at $3 and now it’s at 30.  (Modestly) — of course I’m no genius…

The trick is not being wiped out this year.  And so buying with limited temporal downside risk is important.  F may be bought with clear identifiable risk right now, with a stop 2% under the August low, which is a Basing Point, and a tight downtrend line is broken.

In the process of buying stocks during this period the reader must remember the general state of the market — mulish and sideways.  But Ford will, as the economy returns to normal be a valuable asset.

The same is true of C and BAC.  While these are more chancy they may be bought as a speculative purchase right now with 2% stops under the nearest low.

It is important to remember that investors must scale in to these issues.  That means divide the capital you intend to commit into, in this case, 5 units and only put on 1 unit right now.

We will be adding these to our personal portfolio.

Ford chart above.  Other charts may be seen at:

Ford

http://stockcharts.com/h-sc/ui?s=F&p=D&yr=0&mn=6&dy=0&id=p87365940176&a=203282123&listNum=1

Citigroup
http://stockcharts.com/h-sc/ui?s=C&p=D&yr=0&mn=6&dy=0&id=p84818044993&a=203282124

Bank of America
http://stockcharts.com/h-sc/ui?s=BAC&p=D&yr=0&mn=6&dy=0&id=p89249013713&a=208221319

A letter on the state of the market will be posted later today.  (or tomorrow)