"TRIPLE BOTTOM" in S&P 500 ?

Looking @ recent chart of S&P 500 gives a very interesting picture...as they say "a picture is better than thousand words".....

SO...what is this interesting picture ?

First...S&P 500 @ start of Feb was @ 1044.50...zoomed UP to 1219.80 by April 19th..a GAIN of 175.80 or 16.78% in a short 11 week......this when all Gurus were saying we go to 850 in S&P 500.....

Second....from 1219.80 S&P 500 went down to 1040.78 by 3rd week of May ..a loss of 179.02 or down 14.68% from high.......

Third.....S&P made series of higher lows since.....1040.78 first,1042.17 second then on Friday 1067.89...a typical "triple bottom" scenario ?

BUT our CNBC gurus always insists that we are going down to 900 area...everytime ?.......history has told us that Adami,Rosenberg,Prechter & Carter Worth...have NOT been close to being accurate in last 10 years......factually they all miss the mark by overwhelming %....BUT many sell everything when these Guru's come up with their wild predictions ?

SO..it IS important to develop your OWN "feel of market direction".....you may be MORE accurate than CNBC Guru's.....& it MAY be better for your finacial health

YOU MAY ask..... why is market testing 1040 area so many times ?

Answer could be that US markets are controlled by "supercomputers" which are pre-programmed to buy or sell to certain data points in S&P 500.......back & forth ?

SO..IF we are to believe that.... then we can be very aggressive near bottom of the range (currently) & start booking profit near top of the range (1130 to 1219 in S&P 500)
...

Many stocks which are technically strong do NOT tank when market goes to test lows....like AAPL,BIDU,SNDK,LRCX,CRUS.....to name a few..... BUT on any UPTURN make higher highs......

SO...it is important to stick to strong stocks IF you do NOT want to trade like yoyo.....

It COULD be.... that market is ALSO trying to discount recent "weakness" in US data....once it finishes doing that ...then we MAY find a "new higher trading range"......& supercomputers & their algos will find a higher trading point.....

It is NEVER easy to DECIPHER market trend BUT it is IMPORTANT to have your OWN feel of economic trendlines.....

As we have observed.... that Guru's & economists are always missing numbers,estimates,targets...then it is PRUDENT not to base your investment or trading decisions on their negativism or euphoria .......

Here is my $/sector allocation as of Friday :

SNDK 23.49% Tech Flash memory
BIDU 22.57% Internet search
CNQ 16.44% Oil & gas producer
CREE 16.44% Tech LED
LVS 13.30% Casino operator
TCK 10.84% Copper,coal mining

As you can see that i am well diversified which is the best way to be in an uncertain market environment.

Good luck with your OWN due diligence & comfort level.

Stay diversified.

BLOG does NOT give buy or sell.

Saleem