Where the markets are headed by end of the year ????

Markets have proven MOST traders/technicians/experts were WRONG as to how HIGH it will go in the short term.......

Retail investors have MISSED this run in a big way......they are more skittish now as bullish % has dropped in latest survey to only 38% from 48% last week........this type of reading is normal for market LOWS ?????

SO...what is the message of this market....which most traders are NOT getting it......YES..i was BEARISH based on RSI reading for two weeks .....but CHANGED with TAPE in a hurry..as TAPE rules...No matter what your personal thesis maybe......

Market is looking AHEAD & is PREDICTING a BETTER & STABLE economic picture......almost saying that "job GROWTH IS on its way".......

Market is also saying that the JOLT from Oct of 08 to March of 09......WAS a RARE event & we are on the MEND in a hurry......

TAPE has so much MOMENTUM....that ..I will NOT be surprised IF we make NEW HIGHS in S&P 500 & DOW by end of the year........Nasdaq will take another full year to accomplish that.....

IF my thesis is close to reality...then it will be PRUDENT to position with serious due diligence in MANY stocks......

Lot of stocks are recovering from shock of meltdown......& ARE showing serious GROWTH in Sales & EPS........

When TOP line starts showing GROWTH......then you know... we are in economic GROWTH mode.....

Many corporations are RAISING their GUIDANCE mid-way into Q...a sure SIGN of economic resurgence.......

Chips,Base metals are on fire,Smartphone is showing worldwide growth.......Retail & Casino stocks are making series of new HIGHS........sure sign of MANY things have CHANGED for the BETTER.......

SO....reading tea leaf is NOT difficult ANYMORE......this market IS FUNDAMENTALLY driven ..so forget TECHNICALS...they are NOT relevant @ this stage of EARLY economic GROWTH......

YES... I AM extremely bullish based on CHANGED economic picture worldwide.....Central banks worldwide are all set to TIGHTEN interest rates..as they see Solid GROWTH in their economies...China,India,Canada,Australia,Singapore are on a tear NOW.....as early sign of better things to come......

Here is my $/sector allocation:

RIMM 70.97% Tech/Smartphone
LDK 16.48% AE/Solar
CRUS 6.33% Tech
RFMD 6.22% Tech

You must be asking why such a heavy weighting in RIMM.....RIMM has shown ONGOING GROWTH in EPS & Sales ...BUT has NOT managed street expectations like AAPL...UPOD is the game....I expect AAPL & RIMM to be the TWO LEADERS in smartphones...RIMM is working on MANY perceived weakness by bringing new OS,Phones & other innovations...RIMM will remain in the lead of worldwide market share with AAPL being #2.....thus my aggressive bet in RIMM....RIMM is expected to earn $5.42 this year..so it is trading @ 13.02 PE & Sales is expected to grow @ 26.50% to $18.92 Billion.....

Good luck in your OWN strategy & expectations of current market cycle.

BLOG does NOT give buy or sell.

Saleem