Markets are "out of the gate" Running towards a finish line ...which has NOT been defined yet....
This market are in an opposite direction of where we were in Oct of 2007.....
Dow is UP 26.26% in six straight weeks
S&P 500 is UP 30.42%
Nasdaq is UP 32.2% in the same six weeks
What can we see from this stat IS :
That you were WISE to be IN the market where GAINS exceeded money market funds by several hundred %.....
Nasdaq was the best place to be which gave EXTRA 5.94% compared to Dow......in six weeks only......annualized the difference & it IS EXTRA 51.48%.......NOW we are talking serious % in difference alone.......
NOW the question IS........
IS the party OVER????
My educated & experience based answer IS......
FAR from IT.......
As I have been highlighting.....WE HAVE ONLY JUST BEGUN....
YES...there will be corrections in FAST & ORDERLY manner...
BUT
The TREND IS UP !!!!!
Just to go back to 52 wk HIGHS .....
We ARE POTENTIALLY looking @ following GAINS from Friday's close :
Dow +62.2%
S&P 500 +65.62%
Nasdaq +52.5%
These POTENTIAL gains are much much BIGGER than what we have achieved in the last six weeks.......
So.....
The bottom line IS.... that you have NOT missed MAJORITY of GAINS which COULD come as we move higher & higher......
I personally have made the ERROR of missing the BIGGEST moves because I cashed out "too quickly"...back in 1986-1987 huge move UP......
I have also made the ERROR of NOT being in the FASTEST moving strong stocks till the party was OVER...back in 1999-2000 RUNUP......Kept changing stocks with each RUNUP instead of staying PUT....
So .....How I am playing this RUNUP???
STICK with a game plan & WAIT for the BIGGEST % RUNUP which MAY be coming our way....
As you will notice... that my portfolio is NOT changing much.....either I am adding or looking for stocks which have finished basing......
This IS going to be a MULTI-YEAR bull market and you NEED to be IN right stocks.....which ARE in MANY sectors...there ARE winners & LOSERS in every sector.....
You NEED to get going in your HOMEWORK as this COULD be the OPPORTUNITY of our lifetime......
Here is my $ allocation as of Friday:
GNK 13.78%....Bulk Dry Shipping
IPI 15.84%......AG Potash
WEN 6.76%....Fast Food Restaurant
MRVL 8.94%.Component for AAPL & RIMM+++
NVDA 9.32%...Graphics & Chipset maker
PMCS 9.14%...Networking Infrastructure
PALM 7.10%...Smartphone
RIMM 29.12%..Smartphone
Good luck in your OWN due diligence & be comfortable in your $ allocations.
10 cents trades strategy should be avoided as we are looking @ SERIOUS gains already..let the market be your GUIDE not your OWN interpretations of FA or CHARTS.....
BLOG does NOT give BUY or SELL.
Saleem
11 comments:
Now hear this about APPLE stock:
iMac sales and % percentage of market is way up
iPhone again % of phones are up
iPod doing very well
Lap tops--doing well and new products to be released this summer
Apple TV sales are up
Now I own these products and I want more as they are very good quality and they work!
Sales are way up and % of market share is way up!
I am looking for another run up next week!
remember stocks that go to $120 tend to go to $150--IMHO
Thoughts
Hi Madmax,
Stocks that go to $150 go to $200 easily!!!
AAPL will ROCK !!!!
Saleem
GE news:
General Electric Co. (GE) reported first-quarter earnings of $0.26 vs. $0.43 a year ago, but better than the $0.21 consensus expectations. The only real area of strength for the firm was in its Energy Infrastructure business, where segment profits increased by 19%. The most significant areas of weakness were at NBC Universal, which was hit hard by weak advertising revenues (something shared by almost all media companies) and the GE capital unit.
Investors are probably most concerned about the Capital unit. The good news is that the unit was still profitable, and it has shrunk its asset base. The bad news is that the profits are down 58% and the credit trends look awful.
On the consumer side of the finance business, 30+ day delinquencies were running 11.8% for mortgages vs. 7.55% a year ago and 10.56% in the fourth quarter. For non-mortgage consumer loans, the 30+ day delinquency rate was 6.02% versus 4.36% a year ago and 5.63% in the fourth quarter. On the commercial side, delinquencies are lower but rising fast at 2.84% versus 1.36% a year ago and 2.17% in the fourth quarter.
Looking forward, GE conducted its own stress test under the assumptions that are being used for the big banks. We will properly ignore the best-case scenario (it is absurdly optimistic and does not have any stress in it). Under the adverse scenario, it sees revenues of $9.2 billion before taxes and credit provisions. However, the credit provisions would be $13.7 billion resulting in a $4.5 billion pretax loss.
That would be a nasty result for a unit that once supplied half of GE’s earnings. The original plan before the economy started to head south was for pre-provision earnings of $13.3 billion and $9.7 billion in credit costs, resulting in a $3.6 billion pretax profit. However, such a loss would not really endanger the long-term viability of GE.
The energy infrastructure unit should be a major beneficiary of the stimulus spending, and NBC Universal is still doing pretty well in the ratings, so it should be able to recover along with the economy eventually. The company is in for a year or two of lackluster earnings, but its core franchises are still pretty strong and it should do ok over the long term.
thoughts
Hi Madmax,
For 2 year time horizon..GE will give you very good return.
Saleem
Hi Madmax,
Sold GE @12. Will buy back should it drop on a pull back. Maybe this week as earnings may rock the market a tad in the negative direction. Will look for opportunities as they come.
Best Regards
Hi Saleem,
Did you notice the trading volume on GNK was twice the normal on Friday?
Nice.
The market may sell off slightly as earnings come rolling in. It was a nice buildup to end the qtr.
Best Regards
Hi Standards,
GNK was also given a positive mention & increase in target price by analyst who upgraded DRYS.
GNK is looking very strong as BDI has started to move UP.
Looks like a SOFT open based on futures.
GE profit was nice for you in short order $$$$
Saleem
Hi Saleem,
Bought back GE on dip.
Best Regards
Hi Standards,
Great trading strategy on GE !!!!
Saleem
Hi Saleem,
Interesting watching European markets close out the day with 2-4% losses and US market following suit. Asia still sporting light gains.
Who's wagging the dogs tail?
Best Regards
Hi Standards,
ASIA is decoupling from Europe & US.
US leads Europe in direction....
Saleem
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