Its RIGHT time to follow funamentals NOT technicians!!!!

Technicians are running amok with dire predictions for the markets.......

Louise Yamada is predicting Dow 4,000 & S&P 500 to 400......

So..if you follow & believe in Louise Yamada then Dow is ready to crash another 2626.94 points or further fall of 39.6%.......so buy triple shorts/puts on Dow /S&P......and she will bring you good fortune.....

Jimmy the Cramer is predicting Dow 5320.....a further crash of 1306.94 points or further fall of 19.72% from Friday's close.....another chance of minting money & recouping all your losses from this deep bear market....IF you believe Jimmy the Cramer has any talent for predicting with any ACCURACY market movements.....

It IS becoming a SILLY season on CNBC to come up with numbers without any RATIONALE..."JUST SAY IT".....

Maybe CNBC can run a new segment "CAN YOU TOP THIS" then actually ask them the REASONS for their prediction......which will render most of the pundits SPEECHLESS & mumble words which will make no sense to any listener......

So what do I personally think of these predictions about market crashing down into toilet zone?

I personally do NOT worry about the direction of market..but worry a whole lot about the direction of some stocks which I either personally OWN or FOLLOW closely.....

Some stocks are telling me that they have seen their bottom irrespective of the direction of the market or their level....

Let me make this point very clear.......

Markets closed near LOWS for last 19 months.....Nasdaq actually had the lowest close in last 19 months.....

I personally own the following stocks based on improving FUNDAMENTALS...which NO technicians ever UNDERSTANDS & Jimmy the Cramer PRETENDS to KNOW.......

MRVL last $8.06 low $4.48 Gain of 79.9%

NVDA last $8.39 low $5.75 Gain of 45.9%

PMCS last $5.35 low $2.82 Gain of 89.7%

GNK Last $12.29 low $6.43 gain of 91.14%

So...you tell me WHY these stocks are showing HUGE gains when Nasdaq closed @ LOWEST level in the last 19 monhs?????

& that IS where lies the "real market" NOT CNBC market of DOOM & GLOOM......

Choice IS very clear...do lot of fundamental research & understand which business IS poised to OR ARE improving & position accordingly.....

Most small companies have lot of leverage in an IMPROVING environment & CAN easily QUADRUPLE when everything is said & done.....

I personally believe that we have seen 90% of CARNAGE in US,Canada & Europe's economies....other last 10% of bad news IS & WILL be ignored by markets & most importantly STOCKS which are poised to improve......

Here is PE of many stocks for 2010...which is only 8 months away......remember markets will START to price in 2010 PE shortly...

AAPL....14.46
AGU......4.47
GNK......2.56
GOOG...12.70
RIMM...10.04
POT......5.12
CMED....5.70

I am personally very confident that IF you buy equal share in all of the above stocks...you will be buying LOW.....

IDEA is to take advantage of LOW LOW prices ..& NOT be a market TIMER..BUT a TIMER of stocks with great fundamental research & have 2 year horizon .....

I personally do NOT know of any technician who have accurately PREDICTED a BOTTOM EVER......

Robert Prechter famous Elliott Wave theorist predicted 400 on Dow in 1987..... which NEVER came in close..low was 1833 area...he missed it by only 1433 points or missed it by 358.3%....

Robert Prechter actually had a nice system of 5 stage charts which IS still in use by many...what does Louise created/follows in terms of proprietary charting...I am not so sure....& Jimmy the Cramer who changes his mind every 10 minutes......

So .....

You have a Choice of doing your OWN homework & position for FUTURE or pay attention to PANIC call of the day on a daily basis...which will NOT make you BETTER long term investor...

Know your company in which you are investing IN.....

Invest in FEW with CONVICTION.

CHINA is ready to pump another $600 billion if need be...$1.2 Trillion stimulus can shake this world out of this deep recession.....

Be ready to take advantage of this upcoming CHANGE in direction for world economy.....

How do I know ..that CHANGE is IMMINENT.......

Too much DOOM & GLOOM is the EVIDENCE for me !!!!!

BLOG does NOT give buy or sell.

Saleem