Markets continued its relentless selling.....
S&P500 slipped below 1490 level...closing @ 1476.27......
There is two more days of year end selling by institutions.....
In my portfolio :
BIDU was the superstar UP $9.53...... slated for a breakout @ $421.89...for a target of $464.20..
MA was UP 55 cents ..slated for breakout @ $217.72.....for a target of $236.20...
AAPL was down 38 cents on higher highs...slated for breakout @ $202.32 for a target of $219.10...
RIMM was down $1.58.....
LDK was the big loser down $4.36...technically looking strong for Friday with a rating of 80/95 by www.stockconsultant.com ...which provided all the above breakout points.....on BIDU,AAPL & MA.....
My portfolio was down .5%.....not bad considering Nasdaq was down almost 48 points or 1.75%..
Shipping stocks came to life today with DRYS & DSX being strong......
AMZN was also strong.....
POT was strong...on upgrade by GS...
Please ensure that you have the sustainability of waiting out the current sell off...which MAY continue in new year also.......
Always have the readiness for "worse case scenario".....or else you will be forced to sell in panic near LOW ......NOT a good way to start 2008.......
Never ever be OVEREXPOSED to this crazy market......EVER !!!
If you are overexposed then sell something immediately to "increase your comfort level with the market and your stocks"
Always have 4 to 5 stocks in different strong sectors......
Never buy too many shares of any stock...no matter how bullish you ever are !!!!
These common sense approach I have emphasized for many months now.......
I DO practice what I PREACH...just look @ my portfolio....
I also pulled more money out from market yesterday..before I bought LDK TWICE...This is my way of reducing exposure to the market.....since Aug I have been pulling money out every time I had big gains.....what you don't own cannot hurt you !!!
This strategy is very important for traders......limiting exposure all the time & rewarding yourself with each successful trade $$$
Good luck on your sane strategy...2008 has to be MORE productive ...if you play it SMART & WISE $$$$$
BLOG does NOT give buy or sell.
Thanks for sharing your thoughts in today's sad news......
Saleem
12 comments:
Saleem, I am posting tonights IH report, updating their current take on their position in RIMM. I hope you find this encouraging or at least some of the blog participants that are in RIMM. Best wishes and I hope your hearts get lifted from your sorrow and shock. Doug... P.S. the date of 11/27 was the date that IH entered RIMM. This report was received tonight, as part of their regular updates...
RIMM 11/27 Test 50 117.36 -1.58 119.22 136.95 17M 32M 116.21
Current. Nice, easy pullback on lower trade as RIMM tests last week's gap higher on strong earnings. Good relative strength, and once this pullback is over it will be ready to make the break higher. Really like this relative strength.
Saleem,
I started my investing about 3 months ago and somehow I came across your blog. When I started investing, I didn't know how much about investing. Your blog gave me a good perspective of investing rules, strategies to maximize gains at the sametime reducing losses. Reflecting on the trades I did so far, I am noting my mistakes here. If I can avoid these mistakes next year, I am positive I can reach my target goal of 35-40% profits in the coming year.
1) Buying falling knife.
2) Buying sub-dollar (penny) stocks.
3) Not having stop loss measures to avoid big losses.
4) Not having discipline to do proper analysis before buying stocks.
5) Not having discipline to hold cash positions.
6) Not having discipline to sell weak stocks to buy strong stocks at good entry/buy points.
7) Holding too many stocks emulating a mutual fund.
8) Not having discipline to lock in profits.
I read the excellent Peter Lynch's books you recommended and subscribed IBD. IBD has so much valuable information. Great site with exceptional learning tools.
Right now I am holding AAPL, AMZN, ARAY, BIDU, DSX, EMKR, FMCN, LDK, MR, KF, GOOG, TCM. Although I am sitting on moderate gains right now, I will be selling my positions in TCM & KF.
I think your staggering profits this year reflects your notorious discipline in cutting losses and locking profits. That's the quality I will take/imbibe from your blog.
Sankar
Hi Doug,
Thanks for posting IH take on RIMM.
It is very comforting to see that IH & my take have some commonality every so often.I must be doing my homework correctly.
TA has been an eye opener for me in the last 12 months......gave me confidence and also forced me to sell ASAP when stocks falter.
Gradually ...we all recover from any traumatic incident...just need to defocus...and get back on track.
Thanks for your comforting & caring words.
Saleem
Hi Sankar,
Dont be hard on yourself...you just started to invest....
Based on what I see..you have many strong stocks.....which should help going forward.
Sometimes avoiding loser is the biggest gift to your portfolio.
Also be aware...that some stocks will move UP in short order & some will trend down..because they are overbought......nothing to do wether they are good...they just needs rest so they trend down....
Make 2008 bets with no more than 8 stocks in your case......gradually you will narrow it down to 5 or 6.
Locking profit or avoiding loss requires ongoing discipline.
Saleem
SALEEM
I wish to say to you happy holidays and that I hope your wife is felling better and getting happy.
The world is a better place with great people like your family I hope for world peace. Peace be unto you! May you over come your loss and get strength back.
I like the way RIMM is shaping up and DSX is finally waking up too, hurray.
LDK and SOLAR stocks will be hot today. Here I an hoping that MA delivers huge gains.
Madmax
Hi Madmax,
Thanks for your encouraging words.
Today is shaping to be a short covering day..so we will see gains.
Yes MA is slated for a breakout $$$
Saleem
Good Morning Saleem, I know you have bigger things on your mind right now but if you get a minute, could you loan me some conviction regarding LDK? LOL... I am just looking for a little hand holding and to be told that everything is gonna be alright! LOL... Best wishes. Doug...
I was just kidding Saleem, Kinda. LOL...
Hi Doug,
Everything is fine with LDK...patience & conviction is the-ingredient to make serious money with LDK....
It is going much much higher $$$$
Now cheer UP & have a glass of Cold one !!!
Saleem
Ahhhhh! LOL. Thanks for the chill out. Doug... (p.s. truly hope any extended family is safe and looking forward to better times).
SALEEM
Good day again sir: some news on out our old solar play SOLF:
Solarfun Power Holdings (SOLF) turned a 1.79 gain to 35.52. That put that stock near its recent highs and 130% above the 15.38 buy point after a November breakout from a nine-week base.
Gosh, it is strong today with a target of $78 by stockcharts and RSI of 71 not to shabby.
Have a great day Saleem!
Madmax
LDK should be much higher if the crooks PJ/GS would have not messed up the CC...
Read the YHOO MB for LDK and you can get lot of information on manipulation by GS/PJ.
They did the same thing with JASO, so it dropped from 70s to 40s and it is now back in 70s range...!!
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