Sunday, May 23, 2010

S&P 500 back @ Sep 2001 level ????

IF you look @ S&P 500 performance....it is back @ Sep 2001 level @ Friday's close...so for almost nine years your investing $ has NOT done anything......

This is what Hedge funds & supercomputers love about US stock markets...their Algorithms does NOT care about any level in major indices...they CAN/DO pierce as per their model....SO Flash crash of few Thursday's ago was NO accident.....SEC incompetence or is it their COLLUSION is more than OBVIOUS......

GREED on Wall Street THRIVES.....SO computers rules while SEC looks the other way......

SO..based on all of the ABOVE REALITY...how does one SURVIVES or THRIVES in this RIGGED US markets.......?????

Some of the things..which i have observed & done is listed as follows :

-Become knowledgeable in some key technical metrics like RSI......use it with conviction.....
-Know your stocks well in terms of FA/TA/TAPE....
-Must be QUICK to adapt to new reality..both UP & Down..means sell with any surprise or buy on positives.....
-When markets are JITTERY reduce exposure in a hurry....
-Lock profits when TAPE turns....no matter what the markets are doing...
-Correction IS a reality always be ready for it ......correction maybe in the range of 5% to 15%...
-Understand that ....Wall Street will influence media to achieve their targets both UP & Down....

SO IF S&P 500 was DUD in last 9 years ...then what worked????

You will be surprised to find that IF you buy & HOLD good stocks...all the media manipulation would FAIL......& you will come out AHEAD......REALLY !!!!!

Given below are few example of BUY & HOLD which has been DECLARED DEAD by CNBC & GURU Gary Kaminsky & all the Fast Money gang ....or NOT !!!

Since Sep 2001 ..when S&P 500 returned ZERO..Following BUY & HOLD did AMAZING in the same time period :

AAPL was $7.76 currently $242.32..return of 30.23 times the money invested
MCD was $27.14 currently $67.86..return of 1.50 times the money invested
HPQ was $16.05 currently $46.58..return of 1.90 times the money invested
BIDU Oct 2005 was $6.94 currently $70.85 return of 9.21 times the money invested

SO...there are statistics & there are "damn lies" which is pushed by CNBC.....

SO...as RSI is @ 34.90 which is OVERSOLD conditions...can you pick 4 stocks which will give you the returns of the above sample.......I am sure you CAN.......

It is important NOT to stay FIXATED on CNBC for answers...they ARE after your money with shameless collusion with hedge funds agenda......

I do not have CNBC for last 17 months...only go to Internet for Fast money & Mad money around 9 PM to see what they are "harping ON"......

VIX went to 48.20 as intraday high.....which IS the same level as Asian contagion & Russian Ruble crisis..which was played up to the hilt by hedge funds & CNBC....& that was the buying opportunity of a lifetime.......

ARE we presented with another buying opportunity of a lifetime????

I firmly believe so......

Good luck on your OWN interpretation of hedge funds,CNBC & US markets.

BLOG does NOT give buy or sell.

Saleem

3 comments:

madmax said...

Saleem

I did not renew my IBD subscription

To back ward looking and expensive Too!

I like your take on the market

Hoping for a run up soon--lest see what the catalyst would be--hmmm

Have a great week

Stocks100 said...

Hi Madmax,

Anything is useful IF there is a direct benefit to you......otherwise it is a waste of hard earned money.

I NEVER pay for any research.....

Market is less important than stocks.....which was the theme of my thesis today.

Saleem

madmax said...

SALEEM

thanks for the reply

Best to all