Sunday, December 12, 2010

Nasdaq @ 3 yr HIGH..sign of things to come....

Nasdaq has jumped to 3 yr high while S&P 500 is @ 27 month high.....

World's fastest economy has a new headache,China fighting fastest growth in 3 years & runaway inflation.

World's fastest growing economies like China & India have been "tightening" their banking system to control inflation & contain GDP growth......that is taken as "negative news" by US media as US continues to struggle with their GDP growth......

Chinese & other Asian economies are growing @ rapid clip which is a good thing for US & Europe.

US media has "overplayed" the role of Ireland,Portugal & Greece..while ignoring all the good things happening worldwide.....Roubini,Rosenberg & CNBC are master of TRIVIA......

US stock market is a better gauge of world economic growth which is doing way better than non-genius prediction of Prechter,Rosenberg,Adami & Kass ...majority of them NEVER saw anything good for stock market for 3 years in a row......Prechter saw 400 in S&P 500,Rosenberg saw lower than 666 & Adami Wrong & Proud everyday.....Kass predicted top in S&P 500 @ 1000 & AGAIN @ 1130 ???

Prechter also predicted crash of Gold which went to series of all-time high ?

Do you know why i mention all of the above ?

Because all of these characters have been so WRONG for so long that it is SCARY..& never seem to REVISIT their FLAWED thesis.....

Back to markets.......

Financials & small caps are outperforming while some big caps are stuck @ or below old highs....

Markets seems to be in love with "cloud computing" & running it UP....

This week is Option Expiry & may create another buying opportunity as MM try to control the strike price...Wed & Thursday is subjected to unusual trading pattern.....

RSI in Nasdaq is @ 69.25 , below 80 area reached in first week of November.....

SO..keep an eye on RSI if it gets close to 80...may cause profit taking......

Try to do homework in lagging sector & try to pick stronger stock in that sector.

Having a mix of top performing & laggards may be a smart way to position in this market.

Lagging sectors are Solar,AG,Financial,Retail,Internet Gaming.....

Good luck with your OWN due diligence.

BLOG does NOT give buy or sell.

Saleem

9 comments:

madmax said...

Good Morning to all

Saleem
I got some FFIV at $141.10

Good fortune to all

Cheers

psrajpal said...
This comment has been removed by the author.
psrajpal said...

LVS is weak forth day in a row. Still holding from the earlier buy at $46.50.

The stock looks very promising at the current price.

Do you think it has more downside?

Have a good day, everyone.

Cheers !!

Paramjeet

Stocks100 said...

Hi C,

Good luck with FFIV.

Saleem

Anonymous said...

Good morning Max, Saleem. That FFIV is one bouncy little critter. Not for the weak at heart. GLTA.

Victor

Stocks100 said...

Hi Paramjeet,

Sometimes stocks go through consolidation after a huge run...

LVS is a good stock for long term hold.

Saleem

Stocks100 said...

Hi Victor,

FFIV made a new high even today.

Saleem

psrajpal said...

Since the time of my last update, LVS moved up strongly by 1.75%

Thanks Saleem and all the folks for their valuable comments and suggestions.

Paramjeet

Anonymous said...

Saleem,

Picked up some CGNX on high volume breakout.

Victor