Markets have shown an UNUSUAL strong TAPE going above resistance of 50 DMA DECISIVELY in all indices?
Most participants / PUNDITS have been predicting ANOTHER test of LOWS BEFORE we move UP......
BUT....
Markets are 26 % above lows on Friday's close.......on extremely negative ECONOMIC news all around the world.....???
As they alway's say....PAY ATTENTION TO THE MARKET.....because markets are trying to PREDICT a new trend AGAIN!!!!
Markets are predicting that TAPE of 2009 will be different from tape of 2008 !!!!!
Markets will establish a NEW trading range......
What could be the new trading range.....is UP for serious debate by CNBC PUNDITS.....BUT i suspect those PUNDITS will be WRONG again.....two years in a row???
I am personally of the belief that S&P 500 will see 1100 area easy..which is a gain of 18% from here......It will NOT be a straight line advance BUT majority of this gain will come very quickly then range trading..my guess is range COULD be 1000 to 1100 in S&P 500.....for 2009...for the most part....
Like any other market which IS trying to stabilize & trending UP...it will be PRUDENT to pay attention to sectors...as this market MAY bring new sectors in focus.....
Initially in any strong market...all boats are lifted initially BUT...then new LEADERSHIP emerges and stay strong......while other stocks STAGNATES & FLAT LINE.....
I am of FIRM belief that ETF approach will reward in a safe & predictable manner as you are not @ the mercy of individual stocks or analyst downgrades......
My sector weighting as of Friday's close are as follows :
HOU.TO Crude oil ETF 10.7%
HEU.TO Energy Stocks ETF 9.2%
HMU.TO Mining & Gold stocks ETF 45.2%
HQU.TO Nasdaq 100 Stocks ETF 16.4%
URE Commercial Real Estate ETF 18.5%
Also Short US$.....
I will be adding more ETF on Monday....
I hope that all of you have build some faith in this market going forward...it is never easy to make money...BUT prudent sector focus MAY be the answer to RECOUPING horrendous loss from 2008.
Like anything else in life.....it takes lot of hard work & ever changing approach to selecting areas to trade IN.....
About trading.....it will be PRUDENT to watch for resistance & topping out of this RUNUP...round number like 1000 in S&P 500 MAY be the next resistance...BUT wait for market to give its verdict ....by using stop or selling @ first high volume selling......
Good luck in 2009 $$$$
BLOG does NOT give buy or sell.
Saleem
5 comments:
HELLO ALL
Gas in DC is at $1.65
Look at my DRYS up 10% again
The BDI rates are sides ways for now but some one is accumulating the shares of DSX, DRYS and FRO very cheep.
The world need oil that FRO carries and DRYS carries steel and ore which the world need too!
I am betting that we see DSX merge or buy out another company and FRO buys NAT
Any takers??
the AGS are up and my Monsanto is down!
Hi Madmax,
I have been analyzing Dry shippers for a while.... and today I took my plunge in individual stock & dry shipper EGLE....
Let us see how EGLE works out!!!!
Saleem
SALEEM
WOW --you are a mind reader--Great choice if there ever was a GREAT pick-you got it. I like it a lot. Any reason for EGLE?
Here is some news on why FNM and FRE are GREEN today!New York Fed Begins Purchases of Agency Mortgage Debt A
By Craig Torres
Jan. 5 (Bloomberg) -- The Federal Reserve Bank of New York started buying mortgage-backed securities today as part of a $500 billion program to support the U.S. housing market.
The New York Fed “began purchasing fixed-rate mortgage- backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae,” the Fed bank said in a statement released by e- mail. “Selected private investment managers are acting as agents of the New York Fed in these purchases.”
The central bank didn’t disclose the amount of the purchases, saying such details will be available on the New York Fed’s website beginning Thursday, Jan. 8, and will be updated each Thursday.
The Fed chose BlackRock Inc., Goldman Sachs Asset Management, Pacific Investment Management Co. and Wellington Management Co. to manage the $500 billion purchase of mortgage- backed securities it plans to complete by June.
The collapse of U.S. mortgage finance last year led to the worst credit crisis in seven decades and triggered writedowns and losses at financial institutions exceeding $1 trillion.
The central bank has expanded credit by $1.3 trillion over the past year through programs extending liquidity to banks, bond dealers and other financial institutions. The Fed plans to create money to purchase the bonds, boosting bank reserves.
The Fed previously said the purchases will include securities with maturities of 30, 20 and 15 years, and will exclude riskier securities such as interest-only bonds.
The Fed’s program is intended to lower rates by reducing the supply of outstanding agency mortgage bonds, boosting their prices and thus lowering their yields. Lower yields in turn reduce the interest rates banks need to charge on new mortgages to ensure profitable sales of the securities.
here are some other shippers that I look at:
Drys shippers: SSW DRYS DSX ESEA EXM EGL
Oil shippers:FRO HRZ NAT KEX KSP TNP GMR VLCCF
These are the ones that I look at. their are others.
I am expecting a merger of aFRO and NAT?
Here is EGLE IBD ranking:IBD SmartSelect® Corporate Ratings
Eagle Bulk Shipping Inc (EGLE) Ratings as of 1/5/2009
Earnings Per Share (EPS) Rating Relative Price Strength (RS) Rating Industry Group Relative Strength (Grp RS) Rating Sales + Profit Margins + ROE (SMR) Rating Accumulation/ Distribution (Acc/Dis) Rating
69 16 D- A B-
Good Luck
Hi Madmax,
EGLE is among the few shippers which is EXPECTED to show YOY gain next Q...plus it is among lowest price..gives me more share for my buck....
Saleem
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