Are we ready to take out 09 HIGHS........

Markets are in a 8 week consolidation...gone nowhere and stuck in 1100 area of S&P 500....

Seasonally we are in a "positive mode" until Jan 8th........

Many stocks are in major bull mode on a selective basis.....even in strong sectors there are many laggards......

It has been a smart move to stay in strongest stocks in strong sectors......Solar is a case in point where TSL & CSIQ have led the pack while others languish......

SO...it is important NOT to look @ index as an indication of how to make money in markets.....

BUT ...next three weeks MAY jolt the index out of its base building and make new HIGHS for 09...

BUT ..it IS important to focus on trading ideas as some stocks get overbought while others are READY to move UP.......

There are stocks which are heavily MANIPULATED by hedge funds for their OWN strategy....POT,AMZN,AAPL,RIMM,BIDU,SOHU falls in that category...which means that you should BUY when they are DUMPING these stocks as they become undervalued in the process...a basket approach always works.....

There is plenty of buying power which IS waiting to get IN......some are WAITING for index to breakout....some are waiting for major correction........the trouble with waiting for major correction is that individual stocks keeps making new HIGHS while they wait endlessly for Index to come Down......

Unless you are trading Index....this market has rewarded diversified investors/traders.......

We have only "four trading days left" for booking gain/loss for 09...it MAY not be a bad idea to prune stocks which are NOT performing......after major rally of 9 months ,you should KNOW what is NOT working.....Investment/trading $ should work for you or else it is NOT worth owning.....

Admitting BAD investment/trading decision is KEY to improving your investment/trading SKILLS..it is NEVER too late to IMPROVE your stock selection......

I do see next few weeks as positive in markets......so position accordingly.....

Here is my sector & $ allocation as of Friday :

TSL 35.33% Solar fully integrated
POT 21.96 AG Potash producer
AMZN 15.41% Technology/Internet online supplier
SLW 10%...Silver reseller
AUY 7.85% Gold mining
GAME 7.24% Online gaming
SOLF 2.29% Solar fully integrated.

Staying diversified has helped me when there is short attack in POT.......

Good luck with your OWN strategy.

BLOG does NOT give buy or sell.

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