Finally we have "golden cross" in S&P 500....50 DMA is @ 1122.47 & 200 DMA @ 1121.56...this is considered an "extremely bullish" development.....means stock market will be substantially higher in months to come......
I am sure this is "no news" to the readers of this BLOG as I hinted only few days back that we are all set to do this "bullish cross".......
NOW...the big question is "how to position" to OPTIMIZE gains ????
What has worked will continue to work...like hot stocks which are making new 52 wks high....
It may not be a bad idea to buy from new high list after waiting for few days......
This market had a feel of "bull market" since August low of 1040......currently we are @ 1183.08 with an RSI of 64.78......
There is tremendous amount of money waiting on the sidelines......there is a very good chance that we may see those horde of "trillions" make their way into this market.......
Lot of investors are in "safe mode" by being parked in Money market/Bond funds...they may be feeling that "now" is the time to "relax" a bit and try stock market again......
World economy is stable in "low interest" environment...which is very healthy for home owners/business/corporation......
SO..it is OK to be little more aggressive in high growth stocks which has "stable earnings"
RSI this time can easily exceed 73 area which we went to recently......BUT there is no need to book profit in high growth stocks..as they have found footing & keep going higher & higher....
Nature of this market is changing...it is an "ascending" market NOT YOYO which was the case until August....
SO..it is OK to be invested AGAIN.......traders may lose out and may miss huge gains...
BUT IF you want to trade because you are NOT sold on this bullish scenario...it is your comfort level which matters....
It will be extremely "profitable" IF you can be expert in few stocks and stick with it...there is no need to jump from one stock to another..keep building a good portfolio.....
Good luck with your OWN selection of stocks & trading/investing style.
BLOG does NOT give buy or sell.
Saleem
8 comments:
Saleem,
It is very good news. I have booked profit and stayed on the sideline with only LVS in my portfolio. I will try to buy some growth stock on Monday as the following list. Please comment. Thanks.
BIDU
AAPL
RVBD
VMW
Michael
Hi Michael,
Your list is good except you have VMW & RVBD which are in optimization field..maybe keep RVBD & add something else like PCLN or anything you know well.
Just my 2 cents....
Saleem
Saleem,
Thanks for your input. I will look closely at what you will add and follow. So far it has worked very well.
Michael
Saleem,
I don't know if you follow any Gold stock or not. I know you was in and out EGO. However, you have been stopped doing that.
Do you think Gold stocks are still value plays? Thanks.
Michael
Hi Michael,
Gold stocks are becoming unpredictable & TAPE has been negative....
EGO is @ $16.78 while Gold is @ $1324......EGO was $19+ when Gold was above $1200...
I watch many sectors closely including Gold & Solar..but they are not working these days...so better to stay out than bargain hunting...
This is a market of what works..no need to bargain hunt.
Saleem
I do not know about the cross but I thank you for alerting us.
Good morning to all
Looking for a LVS bounce today and APPLE contimues to wobble around.
I got some Canroy stock and NLY for a RIET lets rock for dididned diversification....
God bless all and best to all
Hi C,
"golden cross" tells you that market has been stronger in the last 50 days than previous 200 days...means a stronger market is emerging..which investors/traders needs to pay attention to.....
Also brings confidence..which brings new money into stocks....
Market is all psychology....
Fear is going & greed is coming !!!!
Saleem
SALEEM
I got lots to learn and to think that I thought that I was a smart trader--not
Oh I got preferred CITI bank stock--it is up like crazy
closed my posiiton in Ford..
Please keep up the good work and thanks for your sharing
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