Futures are in tailspin across the board @ 9.04 AM....
Credit worries have taken over wall street.......
As long as you are NOT in housing,retail & financial stocks.....you CAN take a long term approach & actually do some BUYING in strong TECH stocks......a real CONTRARIAN approach to investing......
But if your time horizon is next 10 minutes of trades.....then it does not matter in the best of markets......
I am staying PUT with all of my position...as I personally believe that strong TECH stocks will outperform everything in the next 6 months.....so NO need to JUMP out...... just because of markets IRRATIONAL approach across the board......for few days....so i think !!!
Did you notice that SNDK is actually GREEN in pre-market....because of strong position in FLASH MEMORY...which AAPL told everyone in their CC that it is going to cost them MORE in Flash Memory.....they are HUGE user of FLASH.......
FDRY reports AH..expecting a BEAT & good guidance......a little patience & conviction goes a long way in investing......
Markets are getting "deeply OVERSOLD"...so it will pay to be in the market than OUT.....my approach......
Good luck on today's selloff...expecting a "better close than open"...
Please do your OWN due diligence & find your OWN comfort level with this YOYO sub-prime driven markets.
BLOG does not give buy or sell.
Saleem
1 comment:
Saleem,
Good post. I have strong faith in the market and believe that this is a short term bear but long term bull market. The rally in tech hasn't started yet.
I also observed that, my porfolio lost more on "defensive, high yield stocks" than on high quality tech stocks. My anchor holding such as BAC, C , MO etc lost 10% in average while my holdins in MA, NYX, AAPL, NVDA and ANAD all performed better or even green during the down day. I lost less than around 2%.
I will wait another big dip to pick up more stocks that performs better than the market.
The following indicators show me that, the market is still solid:
1. Even though the housing market is going down hill, the economy is strong.Unemployment is strong and it will support the consumer spending.
2. Subprime loan will have effect. However, most of the people affected by it were low income families that should not have bought a house at the first place and they only count for a very low percentage of the consumer spending.
2. VIX is too bearish.
3. There are still a lot of sideline money in money market fund.
4. S&P P/E is still in reasonable value.
5. Tech earnings are strong but Tech sector is not reflecting that yet.
Of course, there are clouds. Cheap money might be ending. I would monitor the Yen against US. As long as Japanese does not raise rate dramatically, it would be fine.
I think the next sector leader will be Tech. Tech leaders are barely down during this correction and Nasdaq held it's ground.
This is market is not bullish enough to warrant a crash. And the stock prices are not in insane level yet.
Good luck in trading.
xxyy88
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