Message of the market !!!

Market is giving a simple message.......

There is some hiccup in the economy...which is taking a toll in the psychology & $$ allocation.....

Based on CSCO "as expected guidance...not increasing......the stock has been taken to woodshed and is back @ dec 06 level.....a retracement of 11 months of gain.....I call it very severe message of the market......

Market's message is three fold :

-Wait for year end selling......

-Wait for Q4 ER and see how is the guidance for Q1....

-Wait for Bernanke to "wake UP again and cut interest rate by 50 basis by jan 08"....

I see markets going to low of the year by year end.....

I also see markets going to further low by mid jan....

Unless Bernanke comes to the rescue by 50 basis point......we will drift into new low by Jan 08...

So......the ultimate question is how to play the markets between "Now & Jan 08"

First......there will be a TECHNICAL bounce hopefully by tuesday........

I will sell 80% of my position then.........

What will I sell in that technical bounce.....RIMM,AAPL,VMW.......

I will keep CMED,SINA & FMCN.......guess why.......

They are Chinese stocks and are NOT affected by this "ongoing slowdown in US"

Chinese economy is a perpetual 10% grower..from now to 2010...far beyond 08 olympics....

Chinese stocks will be the "the new superstar in my show"

As I alway's say.......

Take profit in Chinese stocks also and keep trading with 20% exposure.......

SINA ER AH is on 14th nov...I expect it to be a BEAT & guiding HIGHER......

FMCN ER AH on 19th nov....expect a BEAT and guiding HIGHER...

CMED reports on 20th nov...expect a major BEAT and increasing guidance higher for the full year.....

So I see Chinese stocks to continue moving higher on good ER & strong guidance....

So between now and 2nd week in Jan.....the message of the market is:

"Reduce exposure to market on technical bounce"

"Do daytrade wherever the money is"

I have every intention to implement this strategy.........

Do NOT be surprised by my rapid IN & OUT from hereon with 20% equity @ play.....

I will be trading some names which I have NOT tried before...and may "surprise you"...

The trading environment have changed...so I adjust "very quickly with a defined plan"...

So.....who say's life is dull on Wall Street.......

Ask Jesse Livermore...he alway's played his instinct in a big way......

I am a very cautious "taurus" as I continously read & interpret message of the market.....

I alway's highlight :

Never fight the tape......it is ok to lose few points and get out..than be stubborn and lose MORE..

So.....get your selling strategy worked OUT......

It is TIME.........

Good luck on your re-evaluation of your strategy.......

It took me 48 hours of intense analysis...to come UP with my selling/trading/exposure strategy...

I sincerely HOPE that my last 4 postings are giving you all a "new realistic strategy to work on"

Good luck & enjoy the rest of the weekend.....@ least you have my UPFRONT input also.......

Please do your OWN due diligence and find your own comfort level.

BLOG does not give buy or sell.

Saleem