"Never fight the tape & Never fight the Fed" ARE old saying...championed by many including Dr Marty Zweig.....
There IS lot of WISDOM in the above investing approach......
Some of us including ME believed too much in Fed...without realizing that this time it IS going to take a while before Fed ACTIONS will matter.....
As we were facing a "brand New set of issues"due to UNCONTROLLED greed..it was a HIT & MISS approach by Fed......
Sheila Bear was "right on the money" but BB & Paulson were ignoring her pointed approach.....
FINALLY with C resolution we are covering all bases by Fed,FDIC to deal with horrendous liquidity & mortgage adjustment issues......
Market IS taking "great comfort in seeing all the pieces together FINALLY"
In case IF you are WONDERING where IS the strength in the market coming from? especially when all the TECHNICIANS "threw in the TOWEL" and agreed in UNANIMITY that :
-Market is going LOWER to Dow 4000
-S&P 500 860 IS an impossible resistance
This just goes to prove that even the best minds gets separated from their $ with their WRONG conclusions.....
Markets has moved UP substantially since hitting INTRADAY LOWS which IS listed on Yahoo Finance :
S&P 500 low 741.02 Friday Close 896.24 +155.22 or +20.95%
Dow low 7392.27 Friday Close 8829.04 +1436.77 or +19.44%
Nasdaq low 1295.48 Friday Close 1535.57 +240.09 or +18.6%
Majority of the above GAINS were in last 5 days.......
SO......what IS the message of the market?
The message IS......
When everyone IS CONVINCED(Fundamental base or Technical base) that we are heading LOWER...then market TURNS UP on a DIME......
Most of US including ME were WRONG on the DOWNSIDE tape......BUT I can ASSURE you I will NOT be WRONG on the UPSIDE move in the TAPE......
I am fully invested with five different ETF......
Most of my ETF have participated in this RUNUP except Crude Oil.....which should JOIN the RUNUP ......
All my ETF are BULL Pro Beta means Double the ride UP.....
Here is my description of all my Bull ETF :
HXU.TO Toronto Top 60 Stocks
HOU.TO Nymex Crude
HSU.TO S&P 500
HQU.TO Nasdaq 100
HJU.TO Emerging Markets
I am looking @ adding one more ETF which will be in world mining stocks........
So....you may ask why ETF & NOT stocks???
Simple answer is ...that it is SAFER through ETF and individual stocks are still vulnerable to serious decline based on their Sales & Earning projections.....
These ETF are Double BULL...so upside IS tremendous......
Markets are looking BEYOND current KNOWN challenges.......It will NOT be WISE to keep looking in REAR-VIEW.....most economic numbers will be backward looking.....while Markets are ALWAYS forward looking & predict economy 6 to 9 months in advance.....
In case you are still not with me.....markets STARTED turning LOWER back in August of 2007 as it was predicting the ONGOING liquidity mess.....
So after turning LOWER to decades LOW in 16 months.....
Markets are looking towards UPCOMING economic RECOVERY !!!!!
So start your OWN equity RECOVERY program with your OWN due diligence about ECONOMY & how to play the CHANGE.......
CHANGE YOU CAN BELIEVE IN !!!!
BLOG does NOT give buy or sell.
Saleem
7 comments:
Hi All,
The BDI hit a new low of 715 on Friday after some support in the 800 range. This is below the 2001 low and past 15 years low. Shipping of goods is yet slowing. Just last year the index was at 11,000 now its at 715. This is not good for immediate future.
Best Regards
Hi Standards,
BDI is more of an indication of lethargic shipping need....and it MAY be an index which IS reflecting slow economic growth & Piracy factors for now.
Markets are leading indicator.....
Saleem
Hi Saleem,
I hope you're right on this. GS is pointing to next spring for recovery. They seem to have an insight into things we cannot see or know. Plenty of time for the market to hit one more low (not as deep as before) then move up. Maybe last chance to buy on the cheap. I know you'll do well on those ETF's.
Best Regards
Hi Standards,
Markets will do usual pullbacks...which is normal for any environment.
Today is NOT looking good in Canada..thanks to politicians who are hell bent on bringing a new govt....
Saleem
Hi Saleem,
Yes I remember Canada had a real problem at one time due to overzealous politicians. It's been a long time since then. Hope they don't return to the failed policies of the past. Maybe they are playing on the US turnover?
Best Regards
Hi SALEEM
I do not follow Canadian politics
I hope that it is no where near like USA politics, promise everthing deliver nothing!
Lets hope they do nothing. GOOD LUCK
Markets are in a tail spin Yuk! I do love your enthusiasm and positive spin on the market.
Keep up the hard work for us. GS and VISA are beaten down so bad! Are you in any financial stocks? ETF?
To all I have seen a drastic draw down in BDI rates--Look at NAT FRO < DRYS DSX for a clue for the next quarter or two. Several companies suspended dividend and I believe we will wee some shippers fail!
Oils are off also--I had thought that NAt Gas and coal would blast to new highs--
NOT!
Peace to all hope you had a great thanksgiving
Hi Carlton,
I have finacials like canadian banks in my HXU.TO ETF...this has TOP 60 companies on TSX..including RIMM....
Canadian politics are generally a non-event but it IS getting UGLY NOW....
Saleem
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