Sunday, December 9, 2007

Why some sectors are HOT & others are NOT !!!

Wall Street rewards hot sectors in a big way........

If the sectors are NOT hot.....they are left behind in a major downtrend......

Lot of investors & traders have IGNORED this reality .....

World economic TRENDS defines which sectors will do well for a given year or TWO......

You have to read all the economic reports from around the world to know.....what is "really BOOMING worldwide"

You also have to "anticipate WHICH trend will migrate from one part of the world to the rest of the world"

So...it pays to be "world centric"...and NOT get "hung UP in your own little world"

Even in fast growing economy "lot of things are getting OBSOLETE in a hurry"

Worldwide there is a NEED for many things...from gadgets/electronics/data/infrastructure/transportation/Oil/Steel /
Agriculture & many many must have items for affluent and wannabe crowd.........

In 2007 there was a very defined focus on rewarding companies which does well in meeting worldwide needs for many many things........

There is a worldwide BOOM of wealth......which does NOT reflect the "borrowed to the hilt mentality of US.....which is having repercussion in housing/financials & is even challenging the solvency of the biggest bank & brokerages"

So do NOT look @ world economics from US centric...otherwise it will shake your confidence & investing skills....US has extremely short-term HYPER focus on results...while rest of the-world is busy planning for long-term goals...where CASH still rules........

Worlds economic boom is in very early stages...

So do not let agenda driven media to convince you that "world economy is on the verge of collapse.....it IS to the CONTRARY"

US financial mess is being dealt with FIRM FOCUS by the white house & feds.....

Second half of 2008 will show a major turnaround in US economy.......

Most of the troubles of hedgies/banks/SIV/mortgages IS KNOWN to the wall street.....& has been widely discounted by NOW........

So what all this means......that we are heading into a much CALMER markets with its USUAL hedgies driven swings.....who ALWAYS capitalize on nervous traders and scoop their shares @ the-low.......

As I have said many times & in many ways......go with the-strongest stocks....& your money will be OPTIMIZED......

So......how to locate strongest stocks.....some of them I highlight in my 1130AM post and most of them are listed in IBD 100......

IBD is "free until today...so do some homework and get ON with the task of making serious money"

Oh by the way...do NOT forget to spread your money around in 5 best ideas from IBD 100.....also show some CONVICTION for a CHANGE.....

Good luck on a "new day/new way of investing & trading"

Saleem

5 comments:

stktrader said...

Saleem,
Thanks for your efforts. I read you blog everyday. At billcara.com he advises readers to buy when the RSI 7 for the daily, weekly and monthly are below 30 with the daily moving above 30 after it is below 30. Other technicals must confirm the move like the MACD and Volume. The same is for the sell above 70, with the daily dropping through the 70. I asked Bill his comment on IBD methods and his comment today on his blog under the discourse section was that he knew two fund managers ten years ago that subscribed to that method in their new fund and it went bust. He does not like buying high and selling higher. He states that that method is a fools theory. How do you address that?

stktrader said...

Bill Cara has his Cara 100 stocks that he trades. Those are the best companies that he can find to put in his index. This relates to the prior comment.

Stocks100 said...

Hi Stk,

If you look @ yearly gain of all IBD 100 stocks...you will be impressed with their YTD gains.....

Result do speak louder than any contrary opinion.

Peter Lynch practiced letting winners run......again his results were better on a consistent basis for 15 years...than anybody.

I personally believe that you are better to go with WINNERS in a diversified mode...than continously bargain hunt.

For traders in strong stocks RSI is a buy when it hits 50 area & sell when it is above 70 area...that works....

IBD saves lot of trouble for busy people to locate strong stocks....nothing wrong with that.

I personally do not subscribe to anybody.....I follow my own take on economy ,sectors & stocks which can make money for me.

Bill Cara has his system which I have not researched...but I am sure it works also.....

The idea is to make money...how one does it..is left to individuals.

There are critics of any system...but anything which is followed by many..must work...or IBD would have folded by now.

Thanks for your take !!!

Saleem

minaccess said...

Hi Saleem. Did you see LDK this am. While everyone is waiting on the audit, they keep delivering with their business model. Should be a great day and week.

Stocks100 said...

Hi Minaccess,

I actually added 21% LDK in pre-market.

I love this stock...and it is going much higher.

LDK next resistance is $60.11 higher than your double.

Good luck $$$

Saleem