Markets are following a perfect "bull mode" pattern......3 step UP 1 step DOWN since March lows......
Sector rotation are in full force......
Laggards in each sector also getting "pulse" as part of rotation.....
S&P 500,Dow & Nasdaq all are above 200 DMA......
Nasdaq has just made a "golden cross"....a technical blowout scenario......
All of the above will easily take us into 1000 in S&P 500......
June has a chance of being the strongest June "on record".....
2nd Q window dressing will start NOW and will NOT end until June is over......
Fundamentals of economy is improving in a hurry..more data in coming weeks will further solidify that "economy IS turning UP"
Nasdaq 2000 will be here in June also.....
Dow 9500 also in the cards for end of June ....
So we are looking @ POTENTIAL gain of 6.4% in S&P 500,8.2% gain in Nasdaq & maybe gain of 8.4% in Dow......not bad % gain for next 17 trading days..it surely beats .25% annual interest rate in Money Market funds......where trillions are parked still???
While indices MAY average 7.4% POTENTIAL gain by end of June...many stocks will go "ballistic" on this move UP.......
Most stocks are rated for "breakout" by www.stockconsultant.com .....a sure sign of strong tape $$$
RSI also will ascend upwards with higher markets.....so it will be OK to play high beta/high RSI stocks till end of June.......
Many old momentum stocks are leading the charge now...BIDU,GOOG,AAPL,RIMM,GS are on the move......this proves that there is tremendous momentum in the market......
Many technicians have "eaten crow lately" as they under estimated the power of markets moving UP with improving fundamentals as we have firmly passed the low point in economy....
Fundamental driven analysts & traders have done well in this market since March...because they can see clearly why markets should be much higher as we go forward......as they have conviction in the power of worldwide "stimulus"......
Fast Money & Art Cashin has been the "disaster" in predicting stock prices or market movement....as they were locking 10 cents gains with protection factored IN.....
Jim Cramer certainly has proven this time that he is a "good fundamental trader" and NOT changing his mind every 10 minutes.......he has shown "conviction"in this market TAPE....good for him & his NEW & IMPROVED FA based analysis...YES..it is profitable to follow his ideas......we certainly needed somebody on CNBC to read this market accurately & JC is the lonely one on CNBC......
So get your pen/pencil/pc/smartphones working for you to show gains in your portfolio in June 09........homework has done it for me and hopefully will do it for you.....Here is some ideas based on my portfolio & other stocks...all based on RSI :
MRVL...53.86
MPEL...54.15
PMCS...55.54
SOL....76.25
TLM...57.37
AAPL..74.66
RIMM.66.67
BIDU..79.01
GOOG.78.55
GS....65.37
V.....63.64
SPWRA63.11
FSLR..51.76
You can come up with the same analysis for stocks of your interest & knowledge......
Know your stocks well about its fundamentals & technical pattern.....once you do that ..it will give you conviction & high comfort level.
Please ensure diversification in many sectors & be comfortable with your exposure as markets DO go DOWN on a frequent basis.....
TREND is UP $$$$
BLOG does NOT give buy or sell.
Saleem
5 comments:
SALEEM--Great Job!! Maybe you should be on TV
Standards--we are definitely on to a market move here! GE may move higher to -Dunno-hope so.
Looks like the banks are still not well yet! The news is so terrible sounding--Wells and Citi and other financials are in need of more bail out funds?.
Regards to all make some dough!
Hi Madmax,
Thanks for your feedback.
I am in my BLOG TV....
You should watch www.bnn.ca where analyst are indulging in intelligent analysis and ARE given time to THINK & then TALK....
VS CNBC CHOKE the sentence format..where host EAT 90% of CNBC time....
Serious dough time $$$$$
Saleem
Hi Madmax,
GE looks stalled, it will climb with market though. I sold June calls at 15, so GE might inch closer to that number, maybe not. A base here would be good.
Saleem seems optimistic this week. :)
May get rough as we get close to 9K in the DOW. Watch for pull backs near options expiry June 19th.
New phones coming to market should make PALM, APPL, RIMM pop! or drop!
Best Regards
Saleem,
Here's an article you might want to read. Columbia Journalism Review nails CNBC to the wall.
http://www.cjr.org/feature/waiting_for_cnbc_1.php
Hi Tinwizard,
Thanks for the link to the article..It is an interesting 5 page analysis.
I am sure CNBC is losing rating big time..I personally have taken it off my lineup of channel after decades of watching FNN & then CNBC...reason...CNBC offers no value to me....
I just watch CNBC on internet Fast money & Mad money select segments to keep a gauge on sentiment...
Saleem
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