S&P 500 200 DMA is 902.48
S&P 500 50 DMA is 897.90
S&P 500 closed @ 921.23
S&P 500 High this year is 956.23
S&P 500 high set back in Oct 2007 was 1576.09
S&P 500 CMF is positive & rising @ +.131
What all the above stat means that if S&P 500 goes UP by 4.58 on Monday ...we will make a golden cross..which is highly likely & will be extremely bullish ......
Next 7 trading days MAY see feverish buying activity by mutual/hedge funds to be invested in this ascending market......next seven trading days will end the month of June & end of 2nd quarter window dressing.....a bullish configuration to say the least.
Many institutions are under invested as they were NOT sure if markets are "healthy or NOT" ???as we have finished one of the worst bear market in history...caution was prudent & necessary.......
Now that the markets ARE giving clear signal that not only markets are healthy but "economy is also on the mend worldwide"......a good mix to be aggressive in market.........
As trillions are still parked in money market earning around 3%......markets are beating those returns handily as S&P 500 is UP 38.16% since lows...
Technology has outperformed by being UP 44.40%......Nasdaq is well above golden cross & is looking the healthiest......
Nasdaq will "lead all indices to higher highs"
Nasdaq high in October 07 was 2861.51.....which is another 1034.04 points away or 56.6% further move UP......
So the bottom line is..... that indices are far far from recent highs which was set in Oct 07..before this financial meltdown took hold......
As financial meltdown has been dealt with for the most part...it is "reasonable to EXPECT" that we will be higher than Oct 2007 in due course.......
There is a need to make some sector bet which will outperform.......
Techs,Oil,Solar with a focus on small cap will outperform......
Are you surprised about OIL???...as economy starts growing which will be evident to everyone by Q4...Oil will be the leading indicator...so pay attention to oil which is "outperforming already"
It is also important to look for "laggards" in those sectors based on historical trends......% move UP in laggards will be "stunning" as we go forward.......
Yes...there will be 5% correction along the way on a periodic basis......but trend is UP !!!!!
Tape is very healthy...
Do your OWN homework & buy "oversold stocks with good fundamentals"......
RSI 50 area remains a buy & 70 area remains a sell......
Please follow fundamentals closely as some popular sectors MAY see "margin erosion" which will cap any serious move UP.....
Stay diversified in many sectors.
My strategy IS to trade resistance & buy @ near support.....has served me well $$$$
BLOG does NOT give buy or sell.
Saleem
2 comments:
Saleem,
I am curious since you have followed CMED for so long, your thoughts now. In the solar field why Sol over Ldk. Thank you for your blog. It is one of my stops for education.
Regards,
OP
Hi Op,
CMED is going through a major transformation with its recent acquisition.
As with any acquisition there is an integration & business adaption challenges.....
Sometimes it takes 1 full Q to see the accretive result.....
SOL is more nimble & its management is upfront & credible.SOL is also becoming fully integrated with its latest acquisition...thus faster benefit of lower silicon cost ie better margin as they are selling PV solar panels also....
I personally believe that % gain in future will be much more for SOL than LDK.
Hopefully I have answered your question re CMED & SOL.
Saleem
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