Just about ready for bull action in markets !!!

We have been trying to form a solid support in markets ABOVE the lows of the recent slump.

This IS a typical "bear market bottom tape"......lots of UP & DOWN but going nowhere fast.

Once this phase is over we will sharply move UP......

WHY ?

HOW?

These are the questions which is haunting many of us.......

First deal with WHY......markets do not stay @ the same level for ever...once the base is built then markets start moving higher as most weak hands have sold @ lower level in frustration.

HOW is the most obvious part...there is lot of cash sitting in every mutual funds,hedge funds & in individual accounts......

Once this cash is deployed because markets have STOPPED going down......the UPSURGE will be very STRONG........this happens @ the bottom of every bear market.....Mutual fund/hedge funds manager KNOW that the best returns are always from bottom of the bear market......

Once we see confidence back in market ...then every manager will JUMP IN @ the same time creating the biggest "short squeeze" and indices will JUMP above bear market level into BULL mode......all in a matter of few weeks.........

Rallies of the bear market bottom are very strong when cash IS deployed.........

How strong.....just recall the recent RUNUP in financials from bottom......% GAIN is enormous !!!

So......which sectors will benefit?

Before you TRY to answer this question ...you must deal with MACRO issues as to :

Where Oil IS heading.....???

Where US$ is heading....???

If you get these two questions WRONG....then your investing/trading thesis will be WRONG???

US$ direction affects all commodity......

OIL price direction affects world economies......

If US$ is going further down then all commodity will go UP......

If Oil prices are going higher then world economies are heading into recession.....

I personally believe that Oil IS heading LOWER towards $100 area......which will bring consumer/investor confidence & INFLATION fear will EASE...thus my BEAR ETF on OIL ....Most business are heavy user of gasoline from UPS to Airlines.......so there IS investment thesis in heavy user of Gasoline & Jet fuel........

As US$ is already moving UP it IS bringing all commodity down already.....Copper,Zinc,Platinum,Nickel are DOWN already.......Gold ,Rice are way below their PEAK?????

Natural Gas has crashed to $9 area from $13?...so natural gas stocks are feeling the PAIN???

Steel is one sector where takeover is playing a role...so MAYBE there IS trading opportunity..but Stocks are DOWN here is also.......

Ag stocks are also below their HIGHS....CHURNING before heading down????

So we are back to where the opportunities are :

Solar will make a strong comeback based on worldwide electricity shortage...Solar gives a QUICK & ENVIRONMENT friendly solution....TWO hot button of today's WORLD politics....

Tech will come back strongly.......

Housing will come back strongly.....

Retail will come back strongly....

Financials will continue its RUNUP......

Pharma,Medical devices,Biotech have finished a long base will move UP.....

Airlines,transportation will move UP.......

Restaurants will move UP.......

So...there you have it...all the possible turnaround sectors.......

Old favourites will give you trading OUT opportunity ...if you are FAST in your trades...or else RISK increasing LOSS in yesterday's HOT STOCKS........

Good luck in REJIG mode !!!!!

We are on the verge of changing investment/trading thesis!!!!!

The question IS ???

Are you going to be the beneficiary of this CHANGE????

THINK about IT !!!!!

Things NEVER remains the same on WALL STREET !!!!!

BLOG does NOT give buy or sell.

Saleem