Sunday, June 14, 2009

What is wrong with this picture ?

There IS a famous saying that "a picture is worth thousand words"

This IS the picture as of Friday's close :

Dow UP 2,329.31 points or 36%

S&P 500 UP 279.42 points or 41.9%

Nasdaq UP 593.28 points or 46.88%

Oil UP $38 per barrel or 112%

VIX DOWN 61.38 points or <68.6%>

All of above happened in 96 calender days...OR on an annualized basis we ARE looking @ minimum 135%.....

FACTS do NOT lie but media & individual DO... to push their OWN agenda....????

All of the above is ONLY possible IF there "is a material change in the economic picture of this universe"

Most world economy is "back on track"....GROWTH is happening right NOW.....

G8 finance ministers over the weekend even discussed how to "remove the stimulative programs in future" as economy seems to showing its PULSE now?

In US media is always engaged with "disinformation to affect hour to hour trading strategies"CNBC is the-biggest agent of varying agendas to get the desired result on a daily basis"...

Just imagine..... IF there is NO CNBC ?

Then all investors & traders will do their OWN homework instead of "PANIC trading by the minute as fed to them by CNBC"

In Toronto housing has lost only 6% from absolute top.....

In Toronto million $ plus home are selling @ record breaking pace UP YOY

In China retail sales are UP 14%+++

In India all the economic numbers are showing "healthy rebound"

In short there is PULSE in the economic picture......

Can you imagine where we will be in markets ..IF we show real GROWTH in US.....which is only few months away......

Even doomsters like Roubini is changing their tune RELUCTANTLY?

Most fed officials are comfortable with the emerging economic picture & are actually predicting growth by Q4....

If you look @ US bond picture from 3 months to 30 year yield.... it IS giving a sign of solid growth to come.....NO more losing money to keep money in treasury......+ yields are there even for 3 months.....

So the thesis IS.... "picture is telling you MORE than what you are led to believe"

Stock market & money market always predict future economic activity.....

So believe what you see in all markets.....

Russian markets have gone UP the-most worldwide......

OH...how about those prediction of major collapse in markets as championed by Art Cashin & Fast Money on daily basis.....???....i will just leave @ that...let them talk & make a fool of themselves on a daily basis..they love to hang themselves in front of millions of TV viewers???

YES....there is always a "routine/required correction in markets which takes many forms....like sector rotations" OR like stocks taking a required 10% pullbacks which IS happening on a daily basis.....

TREND is UP.....

SERIOUS money is being made.....

BUY strong stocks with growth potential one year out.....

Sometimes biggest % move UP is in small cap....on a daily basis....

So.....do your OWN homework & always look @ the big picture...which IS extremely bright..market knows it...

FOLLOW the TAPE !!!!!

BLOG does NOT give buy or sell.

Saleem

8 comments:

Diane Clayton LCSW said...

Hi Saleem,
Very well said. The one I dislike the most is Larry Kudlow. He really pushes an agenda. I love your clarity about the media and really like Obama. His success is a real threat to the CNBC crowd.

Diane

Stocks100 said...

Hi Diane,

Nice to hear from you again.

Appreciated your feedback.

Most investors/traders psyche is severly damaged by the negative slant on everything which IS getting better.

Every week there is new twist to what could go wrong?

Good luck with your position.

Saleem

standardshigh said...

Hi All,

Options week coming up. Friday expiration. GE has been selling off during options week then retracing quickly.

BDI up on Friday.

Sold out of money calls on GE & CHL.

Best Regards

Stocks100 said...

Hi Standards,

Selling OTM calls before OE week is a good strategy.

GE tape is very impressive..showing tremendous resiliency.

Saleem

madmax said...

Hello to all

Standards good to see you
Gas in DC is $2.60 per gallon

The Cover calls I wrote for GE were the $13 expires on Friday.
What ones did you write?
I live Visa here as I alos like FRO.
It could bump up a few more bucks. It has come from $21 in a few weeks more to come.
Good luck on your calls my friend

Cheers to all have a great day

standardshigh said...

Hi Madmax,

If you wrote 13 calls, and the stock is over 13 at the end of business on Friday they will be sold at 13.
I wrote Jun 15 calls, out of the money, that way the stock only gets called (sold) if it hits 15. If it does not close at or above 15, I keep the call premium I sold, I keep the stock. It's like a small dividend every month. You keep receiving GE dividends too. If GE goes below 13 on Friday you keep the stock and your call premium.
Sold Jun 65 calls on Visa, I'll probably get called on this one.
Gas ATL $2.49 climbing. Will be in your city next week.
Best Regards

c said...

Standards
thanks for your kind reply

I just felt that the GE covered calls at $15 were so cheep and not worth it. For some reason I felt that the calls at $13 would not get called this week. I got .61 cents each call.

Good luck to all have a wonderfull visit to DC it is hot and Humid here!

standardshigh said...

Hi C,

Yes the GE 15's are cheap, only worth playing if you own a lot of shares. If you paid less than 13 for the GE that's great. You will make a profit and premium. Watch for the pull back on GE. If you get called (sold), then you can buy GE cheaper next week. And do it all over again.

Best Regards