Market ready to take off AGAIN.......

Indices are @ highs of the year.....

Option Expiry put a break on all big movers.....

S&P 500 stayed near highs for the last 5 trading days.....

I am expecting next 3 weeks to have a strong UPWARD bias.....

There is a very good chance that S&P 500 could go anywhere between 1277 to 1300 area....

There is a need for hedge funds,High Frequency Traders,mutual funds to reallocate funds from new contribution & Bonds/Treasury into stocks......

Even the most skeptics are "kind of QUIET" these days...not uttering a word about "being BEARISH"

Prechter is hiding, as he has been DEAD WRONG on everything he said 12 months ago.....his wave theory must be in REVERSE..it is sad to see that someone who claims to be "technically oriented" cannot SEE a straight line UPWARD sloping TAPE ????

Now the question IS......?

How to position for next 12 months ?

I do believe, that whatever has worked in the last 12 months should work even better for next 12 months...which means Technology......

As this a "major bull market"..you need to go with winners...anything which has struggled in the last 12 months needs to avoided......

I also believe that Gold is poised for another run towards $1500.......so gold stocks in a portfolio may not be a bad idea...as North Korea has a habit of causing panic......

Banks /Insurance stocks are also set to benefit from rising interest rates as their spread makes them more profitable..so lending is set to resume now.....

Make sure that you go with the leaders in any sector NOT laggards.......

For some, 2010 has NOT been profitable because they were stuck in their narrow focus...while broad market was running away.....

As for technicals & RSI...it is to be adjusted now to Buy @ 50 + as they represent strength & normal pullback..do not attempt to buy anything below 50..let them come UP to 50 minimum...

Different markets needs different strategy...in strong bull market,you stay with what has worked and do not trade ....all in a broad portfolio.....

You can tell , that i have gradually adjusted to a "different approach" & will stay that way in 2011.......

IF 2011 is going to be UP another 20%..means S&P 500 @ 1500...you need to be an investor NOT a trader.......

Economy worldwide is on an UP slope ,even in US we are looking healthy now.....

US has gone into a "major transformation" with both Republicans & Democrats working together for improving their economy...their "sense of urgency & decision making" has impressed me big time in the last 72 hours......

Good luck with your OWN rejig of your portfolio.

It is time to catch UP & make "boat load of money"

It is NOW or NEVER....

2011 is only 9 trading days away !!!!

BLOG does NOT give buy or sell.

Saleem