Markets have shown a "major REBOUND" since hitting new lows on March 2nd....Dow was @ 6469.95....Friday we closed @ 8083.38 an increase of 1613.43 or +24.94% in a span of 5 weeks.
Nasdaq low was 1265.52...it closed @ 1652.54 UP 387.02 or 30.58% in a short 5 weeks......
Why markets are showing this kind of resiliency all of a sudden....????
Because Markets can clearly see that economy worldwide has seen the low point and it IS on the verge of turning UP......
Some traders/investors are extremely nervous because they either MISSED the whole RUNUP or are afraid that markets are ready to DROP......
What traders/investors are missing that Nasdaq has only recovered 387 points of 898 points drop...so another move UP of 511 points or 30.91% will brings us to where we were a year ago...when economy had shown signs of coming deep recession......
Markets are clearly setting UP to surpass 52 week highs on all indices and will go beyond & make new 52 week highs in time......
Nasdaq was @ 4696.69. in Feb 2000.......so in 9 long years..Nasdaq has lost 3044.15 points or <184.21%>......Now all of a sudden our 5 week gain of 30.91% does NOT look too high @ all....
It is important to keep numbers/gain in perspective & always look to history for real answers.
So the bottom line is ..."that we have only just begun"......
This market MAY well turn out to be "the biggest bull market in history even surpassing Y2k frenzy when it is all over.....next 10 years COULD be the-best time to be in markets......it has happened before & it WILL happen AGAIN.......history has a tendency of REPEATING itself over & over.....both UPS & DOWNS......
So it will not be WISE to be entrenched in past negativity & lose the biggest opportunity of our lifetime.....
US,China are giving clear sign of economy turning UP......which will turn the world economy in a growth mode AGAIN !!!!!
So where are the biggest idea to gain from this picture.......
It IS in a well diversified portfolio covering many sectors.....Techs,Financials,Ag,Bulk Dry Shipping,Commodities,Solar,Infrastructure,Oil,.... to name a few......
Some key companies are reporting this week like INTC,GOOG,JPM,C.....which will set the tone for future recovery in Sales & EPS.....
So....please do your OWN due diligence ensuring your OWN comfort level.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Ditto on your analysis. At a dinner party Saturday night people still were shying away from investing, even though the market is going up. This is the best time to get in.
Best Regards
Hi Standards,
Every bull market starts with serious skepticism.....with each move higher more trader joins IN....
Saleem
If one listened to the TV--you would think that more of the worst is yet to come
I think NOT--good times not yet but the stimulus i making a difference and with one bank reporting record profits--I ash every one how far away can more breakout be.
I am stating for the record that APPLE will blow away next week on the 4/22---now do we buy before or after the earning report.
Comments
I like your enthusiasm Saleem!!!!
Hi Madmax,
Thanks for your feedback.
Markets are healthy...so stocks like AAPL are heading higher...IF you are looking @ long term....
It is impossible to time the market..nobody has done it EVER !!!!
Saleem
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