Markets were well on their merry way to take out the resistance on Thursday.....
Friday morning we got many negative news :
Unemployment rate shot UP to 5.5%...biggest jump in many decade......
Israel prime minister to be issued a "rare announced plan to attack Iran nuclear facilities"
Markets were trying to digest 5.5% unemployment which was a reflection of many youth trying to get a summer job..but they have NOT landed the job yet....this influx of youth to job market reflect "nervousness about economy & realism that things are NOT that well in US households"
Israel's plan of attack played right into the hands of Morgan Stanley who wanted $150 per barrel OIL by July 4...Goldman Sachs dream number of $141 was almost touched on Friday?
Is GS going to announce $160 Barrel by July 4th?????
The frenzied activity in OIL pits is a clear reflection of making quick billions by GS & MS.....it IS all about making money with speculative bets......
$140 OIL is NOT a good news to consumers around the world...who are being crushed with highest imaginable price of gasoline,heating,cooling,food items & every product which has been affected by high energy cost...which includes just about every item imaginable.....
So what is Wall Street & world markets do ...they PLUNGE to digest this NEW FRIDAY'S reality......
G8 meeting in Japan has PLEDGED to invest in new technology & conservation......also G8 is asking producers to increase production.....to bring relief to worldwide consumers.....
US is pushing for "aggressive investment"in alternate/renewable energy solutions...this IS a major change for US federal initiative....as only few states like CA are on board for alternative energy solutions......
This IS very good news for Solar energy which IS renewable and IS available today for worldwide use........
Markets will try to stabilize on Monday as worldwide initiatives to contain $140 oil...is more than evident in G8 manifesto in Japan which concluded on Sunday Japan time......
So G8 is focused on TCHNOLOGY for alternate/RENEWABLE energy solutions through AGGRESSIVE means.....which entails Government support/subsidy/tax credits/grants & legislation's to enforce/encourage........
Markets will respond to G8 & attitude change in G8.......
The era of cheap oil is over.....but do expect a sharper pullback for OIL next week...$120 area is where OIL will settle........
So Friday provided me with another opportunity to make changes in my portfolio...as I always have stocks & price range in mind for optimization of $ & GAINS !!!!
Here is my $ allocation as of Friday's close :
BRCM 13.1%
RIMM 42.5%
SOL 31.2%
SNDK 13.2%
Hope you are positioned in strong stocks....i personally believe that Techs & Solar are positioned to move the-most in next 12 months......we are entering a major awareness of Solar & strong 2nd half of TECHS which has already started since June...APPL/RIMM launch of 3G phones will be a BIG BOOST to many tech companies like BRCM,SNDK,MRVL & many more as there IS a shift towards more usage of Flash Memory & GPS enabled 3G phones......
BLOG does NOT give buy or sell.
Saleem
11 comments:
When oil was at 120, we were complaining that its too high and were saying 80 is the right price, but now as oil is at 140, we accept that 120 should be ok... see how fast the perception changes....
Hi Troy,
Reality is better than perception...$140 is friday's reality...so $120 will be a big psychological BOOST to economy & consumers.
Saleem
Saleem,
Interesting analysis on Fridays action. The blip in the employment report was unusual. Every bit of data that comes out is examined from all sides, yet the media proclaims that the numbers were "Unexpected"? I see the word "Unexpected" in almost every news story about the economy, furthering the drama. Atlanta gas prices $4.05 regular. Restaurants are closing down. Traffic is way down except for rush hour commuting. IMHO oil should be around $60. ha! Hope your mother is recovering.
Best Regards
Hi Standards,
Well....there IS new analysis every second on CNBC/FOX rehashing all negatives......
Pretty SOON......most negatives will turn gradually into positive !!!
I am leaving for Houston wed AM to see my mother and will be back next wed night.....
I am not sure if I wll be able to update my BLOG for a week...but sure will try...IF I can access a PC???
Saleem
SALEEM
Have a safe trip to Houton
Let us know when you leave so we can wish you well
I am so happy that Mom is well.
In Dc it is 100 degrees and reg gas is $4.05 a gallon
The public transit system is getting lots of new riders. I can not tell how people are spending money as we have Mercedes, Lexus, BMW's etc real high end priced cars they were all over the road this weekend, Hm,mmmm makes me wonder if Dc is expercing an energy crunch. I know that I am trying to cut costs and be carefull on all expeditures.
What so you all think will happen to AAPL. I know SOLAR should do real well.
Good Luck all
Hi Madmax,
Thanks for your prayers & wishing well for mother.
AAPL....future IS very bright...$225 target is very attainable....my problem was that I had almost $7 per share gain....and wanted to book it while SNDK & BRCM were very attractive near close.....
Sometimes there is hoopla into news...sometimes there is selling on the news.....AAPL stayed near high of its recent range ...so was nervous given the market condition!!!
SOL should rock'n ROLL with the completion of its secondary to be announced on ...Monday ...maybe !!!
Saleem
hi saleem
i am sure your mom is getting better. have a safe journey ..
your mom is in our prayers
steve
Madmax,
I see you're hot in D.C., same here in Atlanta. ATL is seeing some decline in traffic. Usually I could not get out of my subdivision in the mornings due to so many cars at the intersection. Now, I drive right out. Also the hundreds of SUV and Minivan soccer mom's have disappeared. Now kids are riding the bus. Teenage joy riding has also vanished. My neighborhood is much quieter at night. Some small blessings from the gas crunch.
Best Regards
Morning to all
Look at Nat Gas plays as a safe haven
till we know what the market is goping to do
I am buying PQ, RRC and CHK
the best shot may be PQ!!
Good Luck I can only hope LEH does not destroy the market today
AAPL down $1 so far in pre market, RIMM is up a buck!!
Hi Steve,
Thanks for your prayers for my mother.....
Doctors are trying their best to deal with many setbacks & other conditions which develops after heart valve replacement.
Have many surgeons & doctors in my family all based in US....and they are in touch with specialists who are treating her.
I have personally spoken to Heart surgeon,Cradiologist & pulmonary specialist who are treating her NOW.....
Her lungs were severely affected by heart valve replacement...where the current FOCUS IS.....
I am expecting good news TODAY about the HEALTH of her lungs...as doctors will try to let her BREATHE on her own...instead of 50% assistance by breathing machine....
That is why ..I want to be with her to give her undivided attention in this real critical moment......
Please keep praying...I need it.
Saleem
Hello Standards
I love your Atlanta reports, keep em coming
Yes DC is a Hot city 90% and it is 9AM... I know that you do NOT miuss all the extra traffic! We still have out early morning and after noon rush hours--DC will never give up the car!!! IMHO.
I start my new jon on the 16, June at NOAA so it will become difficult to stay in touch with some of the greatest guys around!
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