Contrary to historical interpretation of markets in May & June...we are on the verge of a major rally which will be the-best for the month of June.....
Remember.... Sell in May & go away.....what happened to that market mantra....
Now June is being touted as the month when we lose .54% on average......
Why am I so optimistic for June.......????
Reasons are many :
-Close to $3 trillion still sitting on the sidelines..... itching to jump in....
-Economy worldwide actually has a pulse......
-Fear & uncertainty is fading away from the psyche of investors/traders/consumers....
-Many institutions/retail/hedge funds have completely missed this rally....
-BDI has moved above 200 DMA....a major index for economic turnaround.....
-June is end of 2nd Q...MAJOR window dressing HAS to be done on the BUY side...thus an explosive move UP..... well beyond 200 DMA.....
On the technical side.....let us look @ RSI in major indices :
S&P 500 RSI 59.04
Dow Jones RSI 57.51
Nasdaq RSI 61.54
As per my analysis..FAIR value is 70 for indices based on the history of last four months where we last touched @ start of May.....In June we have a very good chance of hitting 80 in RSI !!!!
RSI will reflects improving trendline in sentiments.....
Nasdaq is the only indices which is @ the highest level above 200 DMA since this rally started....Nasdaq is also getting close to golden cross...when that happens ...watch out $$$$$
Nasdaq fair value is being revised UP to 1950......I have a strong feeling that we MAY cross 2000 in June "meltUP"
I was getting worried with low volume...which changed completely on Friday with last 20 minute buying binge for May month-end.......
I always monitor market tape closely which includes breadth & volume.....which is an advance indicator of the health of the entire market......
So what looks good......
Nasdaq based stocks are the place to be....
Strong stocks will become stronger.......
AAPL,RIMM,AMZN,GOOG,GS,MA,V,ISRG,SEA,IPI,POT,BIDU,ICE,FSLR,
FXI.....are some of the many ideas which may work......
It is better to do homework continuously..than just be lucky !!!!!
This is going to be a bull market for many years ...so it is important to become a better investor / trader...
Good luck in your OWN homework......
Stay DIVERSIFIED in many sectors......
Always monitor your OWN comfort level with your exposure.....as markets WILL correct along the way......
BLOG does NOT give buy or sell.
Saleem
8 comments:
Happy sunny Sunday to all
A beautiful day-please look at Verizon pay ^5 to wait : Look at earnings-comments
:Earnings Est Current Qtr
Jun-09 Next Qtr
Sep-09 Current Year
Dec-09 Next Year
Dec-10
Avg. Estimate 0.63 0.64 2.53 2.67
No. of Analysts 24 22 29 26
Low Estimate 0.58 0.60 2.36 2.46
High Estimate 0.67 0.68 2.62 2.94
Year Ago EPS
Hi Madmax,
No growth, but nice dividend.
Better GE, dividend + price appreciation.
Have a great day! Hot in Atlanta
Standards
Thanks for your comments--always appreciated.
I am also looking at NYX. Impressive volume lately and an $8 dollar move lately.
4% divi.
Range 28.83 - 30.23
52-Week Range 14.52 - 63.50
Quarterly EPS % Chg. -52% P-E Ratio 12
3 Year EPS Growth Rate 55%
Debt % 27%
Annual Earnings Est. % Chg. -36% Market Cap $7.80 Bil
Quarterly Sales % Chg. -6%
Dividend Yield 4.0%
3-Year Sales Growth Rate 44%
Profit Margin 23.2%
Shares Outstanding 260.0 Mil
Float 254.8 Mil
Any takers it does have appeal and growth potential as volume in the NYX grows
Hey Saleem,
I'm not here to pump ACTC but read this news release:
http://www.reuters.com/article/marketsNews/idINN2825662420090528?rpc=44
Could be BIG,,,VERY BIG...
Could leave other stem cell stocks in the dust...BTW I do own GERN too...
Hi Zak,
Nice to hear from you again.
GERN is doing OK these days.
Thanks for ACTC info.....I personally do not buy anything below $5.....
If I ever do...like WEN & LSI...i had to get out because of lousy tape action.
Good luck in your ACTC ....
Saleem
Hi Mad,
Like your NYX but better get in now. While it's still cheap.
Strong morning, continuation of Friday. Now that GM has officially gone bankrupt, there is no more really bad news coming, hence the markup in stocks. IMHO
Best Regards
Stnadards
Good morning to all
I still 800 shares of GE
I am looking at NYX as a possible diversification thing--I can get more GE but gosh not sure what is to much here--thoughts?
Have a great beautiful day to all
Hi C,
The number of shares is relative to your comfort level.
I own 10K shares GE. At these levels it's still a good buy IMHO. NYX too!
We are closer to the bottom than the top! Where do you want to be in 5 years?
Best Regards
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