Sector rotation going on...buy oversold sector NOW???

There has been sector rotation going on @ a "furious pace"????

Overbought sectors are becoming oversold in matter of day's????

Oil has slumped 21.7%...a bear market slump in FOUR weeks?????

AGU has crashed 30% in a short time...deep in bear market territory????

X a premier steel stock has crashed 29.5%????

APA has crashed 29.4%????

Gold has shed 15% in few weeks?????

KGC a Gold stock has given UP 42.5% ?????

SOL has slumped 52.8%????

So which sector is trading near HIGHS???

Based on what I monitor......NONE ?????

So what IS going on in this market DAILY????

@ best it IS becoming a crap shoot?????

If OIL is down then all metals,Ag,Steel,Nat gas,Oil ,Solar stocks are down......

If Financials are UP then techs are going UP.......

If Oil is UP then Gold,Oil,Nat gas,AG,Solar stocks will go UP.....

So...... what is causing all this daily rotation or 1/2 day rotation?????

CHINA........

Yes...it is experts/economist/TV pundits take on future GDP GROWTH of CHINA.......

Lets us take some hardcore numbers on China GDP picture........

CHINA highest GDP growth going into Olympics was a frenzied 11.9%.......

Last number is 10.1%...which CHINA Central Bank was trying very hard to slow the GDP growth towards 9% for 3 years by raising lending rates & increasing reserve requirements for banks many many times......

Because of increasing / higher lending rates Shanghai Stock exchange has slumped to new Lows on Friday.... FXI has shed 40.2% in a year...

So where is CHINA GDP heading from current 10.1%.......I say 9% GDP growth.......

So from frenzied GDP growth of 11.9% @ its PEAK... we are heading towards 9% growth......which is still very healthy.......

India is also growing between 8% to 9%...they also have raised lending requirement to control inflation.....ISXIF is down 35.8% this is Sensex Bombay Exchange......

I am expecting China & India to renew their growth @ a healthy clip of between 8% to 9%....compare that to US which IS @ .5% GDP growth.......

So the growth is still in China & India & their stock market will move higher as we control hyper-inflation around the world.......remember the RICE panic.....now NO MORE......remember OIL going to $200.....& do not fight the tape......NO MORE......

Once inflation starts easing in real numbers then world markets will again focus on growth AGAIN......

So......What is the thesis for trading/investing????

GROWTH is NOT going away from world economies.......even US will start to grow in 09 !!!

So buy the beaten down stocks/sectors......

What is OUT today CAN be IN tomorrow.......

AE is NOT DEAD..... OIL is still very HIGH @ $115.....remember $58 oil not too long ago..that was less than a year ago.......

SO GS is getting profit by rotating sectors to SHORT......

But they HAVE to cover to lock in GAINS.......which will bring balance to beaten down sectors.....

9% GDP growth in CHINA & INDIA is very good GROWTH for all sectors.......

SO.......

Are you buying the bargains in beaten down sectors......

YES.....

I did that.....

By buying KGC a beaten down Gold stock & keeping SOL in the trashed Solar sector...

So what about Gold now...August to Feb is the seasonal strong times for Indian wedding,Christmas buying & Chinese new year buying when Gold IS consumed for wealth accumulation.....

What about Solar......they are all reporting this week LDK,JASO,CSIQ,SOLF,SOL.....they are all going to beat...which should bring Solar into FOCUS.....

So GO behind the headlines........

Pundits are ..........rehashing old thesis which is already factored in stocks & indices......

It IS the Entrepreneur which IS giving GROWTH to CHINA/INDIA & Rest of the world......

I am an OPTIMIST by nature & always look beyond the current thesis.....Yes my timing may NOT be right ...but analysis is always digging deeper.....

So do your OWN due diligence.

BLOG does NOT give buy or sell.

Saleem