Markets "on the Road Again"Northbound !!!

Markets have set the stage for a major recovery.......

All the financial woes have been discounted........

Housing IS on the verge of being discounted also.......

Refiners WOES may be coming to an end........

Semiconductors are READY to roll......

So...what all this means to an investor/trader????

IT only means.......

That......the BIG money will be made in those sectors.......

AG/Coal/Gas will still work......

Good Solar will still work......

AAPL & RIMM will still dominate......

But it MAY NOT give the return of beaten down sectors as mentioned above....

Laggards with good prospects are the way to go.....

As in every recovery/UPTREND from major downtrend which we just witnessed....new sectors always outperform......WHY???

Because everybody is OUT of those laggards...OR very few are IN.....so there will be tremendous UPSWING when new money IS put IN.......

Most of the laggards are 50% below of their 2 year old highs.......while HOT'N SEXY have all moved UP @ least 100% higher in last year...some Ag are UP 300%.......

As we all know from experience that market always looks ahead......so laggards MAY give you the sparks way more than old & trusted performers so far......

You always have to wonder.......how much of the good news is already priced IN......I say quite a bit in some ......

My strategy IS to forget the "obvious favourite for now" & try some FA based picks where trend lines are improving for 09......

This way.... I am hoping that my year MAY NOT be as bad after all...once Jan 09 rolls around !!!!

Again the secret to any FA/TA is to go with minimum 5 to 10 good prospects.........

Some investors/traders worry too much about tick by tick performance of each stock......I look @ the overall return for the day...once I have placed my bets.....

Yes...I do have under performers in my portfolio...but IF they work out by December...I should be more than pleased........

Hitting home run with every stock is NOT important.....they all act differently....so a positive return in the given time frame IS very desirable......

It is NOT important to change your trading/investing style...but TINKERING a bit with "new reality of market is SMART"

We.....are all different in terms of trading style or conviction level.....so it IS OK to be comfortable with your OWN strategy......

In the end..... you have to feel good about your return from this changing market.......

But...But....I cannot over emphasize enough...that you must KNOW your stocks well both FA & TA trend lines......????remember it is your hard earned money we are talking about !!!!

Do NOT be careless with unproductive experimentation's...with words like "let us do this & see how it works out"

Your strategy be a better thought out & diversified......

Luck should play a smaller role...your homework should play a MAJOR role in your returns !!!!

Investing/trading IS a lifelong phenomenon....so better DEVELOP some FA & TA skills...which you CAN rely on always......instead of looking for quick winners from MB/BLOG.....

Investing/trading with confidence is very important...even if you make mistakes.......

Mistakes/losing money is inevitable in any markets.....try NOT to DWELL on it.....take the lumps & move the $ into productive stocks......it is NEVER too late to recognize an error.....

Yes ...I do keep some under performers....but it is based on FA/TA in a manageable $ allocation and DO have a time frame even for those duds.....

So here is my $ allocation weighting as of Friday's close FWIW.......

BRCM 4.3%

EGO 4.1%

ICO 3.9%

JNPR 4.6%

SEED 12.1%

PMCS 4.4%

SNDK 5.0%

TSO 18.5%

TOL 16.9%

V 26.2%

Sector weighting :

Semiconductors/tech allocation BRCM,SNDK,PMCS,JNPR= 18.3%

Ag SEED =12.1%

Refinery TSO=18.5%

Home builder TOL =16.9%

Financial V =26.2%

Gold EGO =4.1%

Coal ICO =3.9%

Good luck with your OWN homework with FA/TA plus study of TAPE.

BLOG does NOT give buy or sell.

Saleem