Sunday, September 7, 2008

Markets ready to "blast OFF above resistance"

With the resolution of the biggest mortgage mess in the history of wall street by treasury taking over FRE & FNM which guarentees all the debt of housing mess......

As many pundits have said markets will NOT bottom unless housing bottoms......

Markets will also NOT bottom unless financials bottoms......

FRE & FNM are tied to both housing & financials mess...so their takeover CLEARS up the biggest obstacle to market breathing little better.....

Lot of chartist still believes that their will be a break below July lows...and technically market will NOT bottom until we reach 960 to 1090 in S&P 500.......this analysis is from stockcharts.com whose newsletter I receive weekly titled "chartwatchers newsletter".......

Based on my averaging out the two above numbers..we are looking @ 1025 on S&P 500 which IS a far cry from current 1242 on S&P 500....another 17.47% drop......possibility???

As we have learned that NOT all sectors go down with every drop in markets.......

Technology is vulnerable????

Solar SHOULD defy the downturn as its fundamentals are getting better & better ..plus they have corrected way more than drop in S&P 500.......

Why Solar fundamental is improving :

Republicans wants Solar tax credit to go through BEFORE election as per George W. BUSH weekly radio address yesterday......

Sarah Palin wants Solar.....

McCain wants Solar...

Obama loves Solar.....

Spain reduction in subsidy MAY not be as severe....

France,Italy,Germany,Japan,Middle East,India,China LOVES Solar.......US is ready to Join Solar momentum in few days as congress comes back on Monday to RESUME "people business"...

Solar is poised to become the investment of century as all stars are "aligned NOW"

I will highlight solar stocks from a totally different perspective.......

I am highlighting Sales for 09 & current market cap which IS another way to look @ stars & LAGGARDS.......

Guess what ...sometimes laggards gives you the "biggest bang for the buck"

All data as of Friday close from Yahoo Finance & MSN moneycentral.......

STP Sales 09 $3.21B...Market Cap $6.68B MC to Sales ratio 2.08
LDK Sales 09 $2.50B...Market Cap $4.81B MC to Sales ratio 1.92
CSIQ Sales 09 $1.73B...Market Cap $991.20M MC to Sales .. .57
SOL..Sales 09 $1.26B..Market Cap $1.04B MC to Sales ratio .83
TSL..Sales 09 $1.29B.Market Cap $712.35 MC to Sales ratio .55
SOLF.Sales 09 $1.10B Market Cap $695.86M MC to Sales... .63
JASO.Sales 09 $1.90B Market Cap $2.61B MC to Sales ratio.1.37
YGE..Sales 09 $1.74B Market Cap $1.94B MC to sales ratio.1.11
CSUN Sales 09 $610.43M Market Cap$366.46M MC to Sales .60
FSLR Sales 09 $2.20B Market Cap $18.89B MC to sales ratio 8.59
SPWR Sales 09 $2.05B Market Cap $7.35B MC to Sales ratio 3.59

So do your OWN due diligence based on current market Cap ratio......there IS more to these ratios than what IS obvious to retail......like HUGE American Premium or DEEP Chinese Discount on Solar stocks....never heard of this METRIC before???

BLOG does NOT give buy or sell.

Saleem

9 comments:

dslnbull said...

Hi ,
salim

Did you listen Paulson plan???What will be tomoorow ???I think market will climb more then 300 point but FNM FRE will be down
Great winner will be WM, BAC, ABK, MBI, RDN, WB, LEH I mean banking sector and mortages sector. I hold lot BAC ., nothig else.

thaxs

Stocks100 said...

Hi Ds,

BAC will do very well in this financial UPSWING.

Markets will be UP 300+++

MBI looks like a good bet for future.

FRE & FNM are toast based on Paulson wordings ...reading "between lines"

Saleem

madmax said...

Do not forget that VISA will also fly way over sold IMHO

the Shipping stocks are on sale also--FOR, DSX. DRYS
they are way over sold the shipping rates have been hit hard my DSX has long term locked in rates--pays 14% FRO is the leader in oil shipping business and pays approximately 16%--do the numbers they are interesting buys
I also think that my GS should finally come back too.

MONSANTO was strong Friday, looking for more up turn this week
HAL is a driller and is down huge smart money will want a piece of the driller action and be buyers
But what do I know I am a want to be stock buyer
Cheers

minaccess said...

Hello. We may see a 300 point dow rally, but I do believe that will set up a market short. This is a free market. Any "artificial" remedy like FNM or FRE bailout will not last. Friday this info leaked and the market rallied to close up but the volume was lower than thurday.

standardshigh said...

Hi Saleem and all,

I'm not sure what is going to happen myself. Never had this type of thing in my lifetime, so I just don't know where the market will go. However, the market sure has a way of disappointing everyone. It does just the opposite of what you think.
FNM and FRE may be down at first, but not out,,,,and where do all the shorts go from here? They must cover, as there is little benefit from hanging around any longer.
Gooooo SOL! Gooooo V!
Best Regards

Stocks100 said...

Hi Standards,

Futures are UP HUGE as expected...

FRE & FNM decision IS a game CHANGER.....

Hong Kong UP almost 1000...

Nikkei UP almost 450....so far

Things are looking UP for SOL ,Financials & entire market...

Happy day's are here AGAIN $$$$

Saleem

madmax said...

HELLO to all

Looking like a huge up day--hurray
GS up $10 in pre market Visa up $3 bucks Go Visa

Asia up huge you heard it here market turn around
FRE and FNM are up graded to--so says CNBC

I wonder if we will ever get fair and balanced reporting form tv???

Peace to all

dslnbull said...

Hi all

sold BAC .now 100 % cash.Waiting to buy back BAC.

Like to buy SOL CSIQ. but may waite few days more.

Thanx

dslnbull said...

Hi salim

Any thing good buy ??

Thanxs