Saturday, May 19, 2007

Are you READY for a DIFFERENT BULL market ??

This ongoing BULL market is being sold SHORT by many inexperienced traders.

This is not a market to trade ......but to stay PUT in many many stocks.

Do not chase every TICK UP or DOWN.

Position in good strong companies with above average GROWTH potential.

Any GYRATION in those stocks should be greeted with CALM ...NOT OVERREACTION.

There is lot of NEWS coming out of CHINA which will be exploited by TRADERS as percieved BAD NEWS............those are all SIGN of a FAST GROWING Economy which has LEGS.

CHINA is DESPERATELY trying to keep GDP growth below 10 %...but having NO LUCK so far...........I personally BELIEVE that 10% growth will be NORMAL for several years like 10 years from NOW.

If you need a parrallel in HISTORY look @ JAPAN in 1970 & US in 1960...Their GROWTH lasted longer than 10 years....then you will get a good IDEA as to how long CHINA growth will be...............10 more years may prove to be CONSERVATIVE.

Yes there will be HEADLINES detailing thesis for CHINA slowing down.............keep in mind those will be a PAID & BOUGHT thesis by vested interest to justify corrections in an ONGOING BULL Market.

Any CORRECTIONS should be bought AGGRESSIVELY.

This is a WORLDWIDE bull...who has no INTENTION of slowing down................The only SLOWING growth area in the WORLD is US because of HOUSING bubble.

Even US is getting READY for a TURNAROUND by end of the year...with a rate CUT by federal reserve.................so by 2008 there will be a worldwide GROWTH.

Why stay Diversified..................because of private equity Funds being FLUSHED with INVESTIBLE cash.

Takeovers will be the NORM.....so DIVERSIFICATION will give you a good chance of hitting the jackpot.

Lot of takeover WINDFALL is ready to be REINVESTED.

Do NOT stay in DEAD stocks......they are DEAD for a REASON..........those show NO SIGN of revival.....while this BULL MARCHES ON.

DEAD money is WASTED money.......take your LOSS and move ON to better things.

I will be posting TECHNICALLY STRONG stocks in my next post.

I am STAYING very well DIVERSIFIED and STAYING PUT.....no more $ trades.

My portfolio is SNDK,STP,NVDA,JNPR,UXG,RAL.TO,PDN.TO.

Good luck in your due diligence.

BLOG does not give BUY or SELL.

Saleem

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