Markets are going where they want to go......
Friday Option Expiry may have played a major role in today's selling ???
Let us talk about markets......since everybody has a definition of this market ...as to what it is ???
Basic definition of markets :
Correction 10% or MORE......
Bear markets 20% or more....
As of today's close this IS the factual picture.....
Dow down 14.8%
S&P 500 down 15.4%
Nasdaq down 17.9%
Contrary to what experts like Macke & Cramer are YAPPING...we are not @ Bear market definition yet......thought you may like to know some wall street definitions......
So..why do I come across as NOT worrying to death about markets.......
Markets do NOT make me any money..stocks DO.......
So I worry a whole lot about stocks every day every TICK......
When I buy any stocks.......I always figure out how LOW can it go.....and If I am ready to accept a reasonable drop in the stock price then I stay with that stock with CONVICTION....
What type of stocks should you buy in this environment.......
The stocks which you know inside out...both FA & TA & have HIGH level of confidence & conviction.
In this environment.....even ONE stock with conviction is the way to go........
So...the moral of the story is....know your stocks & sector well...where growth IS......where EPS is expanding NOT shrinking.......
My portfolio was saved by MA & LDK.....My short in Canadian $ helped me yesterday & today also...today Canadian $ has closed @ the-lowest level of 97.01......I shorted @ 109.80...stunning 12.79 % GAIN.....that is "nirvana in forex"...this is a GS "sub-prime short type of performance"
My portfolio is :
MA,LDK,AKNS,CSIQ,AGU.......
Read as much about your stocks...be an expert in FA ......TA never hurts...but it is NOT be all & end all @ all...imho
So...we have to get up ....to worldwide SLUMP in markets on friday......
I wonder if IBM CAN save us on friday AGAIN......OE notwithstanding........
Friday......can we close "green"...maybe !!!!
Saleem
17 comments:
Saleem,
It seems like LDK's FA is getting stronger and stronger.
You like Peter Lynch. I believe he said that buying a stock is like seven card stud, with each card turned up adding to or subtracting from the fundamental story.
Well, every card flipped over for LDK reveals more and more positive news.
LDK is certainly an excellent long term play. imo
Hi Mainer,
Yes... Peter Lynch will be very happy to own LDK stock.
I know...this is the-best solar play for me...
Saleem
LDK Fans check this out:
http://www.greentechmedia.com/articles/ldk-rises-as-solar-shares-fall-508.html
Saleem,
I also added 100% more LDK this week @39 although would have liked it if purchased @35. In this market no one can guess the bottom and I am happy about that purchase. I am counting on LDK to cover my steep losses in last couple of weeks. I can afford to hold LDK for couple of years.
Hope BIDU can recover soon. It took a royal kicking this week.
Thanks,
Sankar
Hi Sankar,
Good move to add LDK.
LDK has great appreciation potential till 2009.
BIDU has support in $250 area....above 200DMA.
Saleem
Hi Troy,
Thanks for highlighting LDK writeup.
LDK is looking good.
Saleem
Saleem,
great call on MA against the IH call. Tonight they recognized what you already knew, strong RSI. I am happy for you and impressed with your call to stick with MA. I bet it will be on their buy list again soon. LOL.
What IBD is saying...
" That action should serve as a strong warning to overeager investors. You might be tempted to try to outsmart the correction. But in a sharp downtrend, the losses will often spread to every nook and cranny of the market.
Some market pundits have recommended buying stocks, saying depressed prices make them better bargains. Damaged stocks eBay, Comtech and Tesoro got resounding recommendations from brokerages Thursday. Ignore such claims. Your best and safest bet is to ride out the storm in cash. "
Hi Doug,
We only have to get few stocks right in a year with conviction...and we will be ahead of the game.
What surprised me that IH had MA as a buy and got it wrong...then near low after MA showing RS...they went for PUT.....
I liked your answer to Patrick...Now I will NOT divulge anything in terms of GAIN/LOSS until I sell....
Yes...I will give exact buying price as usual.....
By doing weekly accounting...it is NOT fair to those who may be having a bad streak......
By end of 2008 I will give year ending result......
This way BLOG will remain wholesome,helpful & info base.
Saleem
Anyone in YGE on here... it is another great solar stock and the news just out that they are building a US plant... check it out..
http://www.reuters.com/article/marketsNews/idCNTHKG35694520080118?rpc=44&pageNumber=2&virtualBrandChannel=0
Hi Saleem. The small cap indices are in a bear market (s&p 600). Like you said, the major indices are in correction. Cash is the safest place for most of us. Some people are able to pick winners in any market, but it is definitely harder. I put my money on the line today with LDK. Hope we are right. Peace.
Hi Minaccess,
Bottom in markets is a very painful process......
It is a gut wrenching experience...which we are all witnessing....
I am suffering like everyone else...the only difference is ..I have conviction for my picks....
Always DO what FEELS right.
Welcome to LDK bandwagon.
Saleem
Yesterday was capitulation, volume
was twice the daily average, culminating into a classical bottom after days of selling.
Hi Troy,
Fast money will be selling if we go green @ open.....
They want another 300 point drop and VIX to spike UP to 31+ area.
They come across as minute trader..with not much to show for...
They are 80% wrong and never CHANGE their take...remember Adami INTC rant from $30 area...and gold going DOWN..whilw it keep going UP.....
Talk of genius...that is the GANG ???
Saleem
I agree with you... but 200/300 points does not matter as we have gone this down already...
we have to start positioning ourselves for the run up now... IMHO
and as you said there are bargain galore everywhere
SALEEM---Good Morning my friend:
What a great start today! GREEN! Another day to achieve good things.
Please do not change a thing that you do on your blog--I love it the way you have been doing it....That you post buy price and sell price, and offer advice.
It is your blog and we need you for input on our ideas, support and healthy comments, galore.
I LOVE it all;
I turn to it every day and I use it to balance what TV land says and of course my own bone head ideas.
YOU have been so right about TV--they seem to get it all wrong .
J Cramer is a Shrill and full of him self.
I Just what to thank you for a job well done and for alowing me to participate in your blog!
I still have my tiny amount of MA 30 shares; and NYX, AGU, AKNS, CSIQ, DSX ; I have lots of LDK as it will perform very well this year.
Madmax
i believe this downdraft is far from over. if you are a trader being in cash or shorting is the prudent way to be in market enviroment. all leading stocks are broken down. as far as ibd, they have a system which works as long as you adhere to their rules. most traders fail because they have no system. ibd rules forces you discipline. i have been in cash since ibd labeled the last rally market rally under pressure. all the stocks i owned have tanked since then.
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