2011..WK 1...so far so good......

Indices are all sitting @ their best close as far back as 2007......

IF there are disbelievers about this market,Hedge Funds are the biggest
disbeliever.....they are under-invested big time....they were UP only +1.7%
vs S&P 500 being UP 6.7% in December 2010......

SO..HF will be the biggest source of funds to propel this market into higher
grounds.

Retail investors who have given up on this market in the last 3 years,
are slowly crawling back in......

There are many theories about the direction of this market in January,
some predicting pullback in January, some are slightly positive.

Instead of worrying about next day of trading,we all need a game plan
to suit our OWN trading style.

Some sell on the day of decline, others buy on the day of decline ?

Some sell on UP days ,some BUY on UP days ?

What i am really saying ,do you have a strategy for those days ?

For me it varies,based on how i am looking @ those UP or Down days.

2011 is going to be another good year for the markets.

Next few weeks are earning announcements which will dictate market TAPE.

AA a perennial loser MAY surprise on Monday AH,expecting a beat & guide UP.....

I expect January to be positive based on ER,it will be PRUDENT to be overweight in equities than underweight.

I am expecting Feb to be Negative month,so planning to be underweight in Equity.

NOBODY has a "crystal ball" which can accurately predict month to month movement,BUT it is good to KNOW RSI when it is in overbought territory...80 is known to be "overbought"..currently RSI in Nasdaq is 68.67.....

Old bears are "extremely QUIET" but new bear Doug Kass is extremely LOUD & WRONG about market..he declared TOP in S&P 500 @ 1000 then 1130......and has used many theories to justify his bearish thesis...BUT he has FAILED to convince anyone that 1000 was TOP ???? we closed Friday @ 1271.50......

SO...it is important to have your OWN view as to where we are heading in markets & stocks you own......sometimes stocks defies market & keep going UP & sometimes market goes UP but stocks go South......

Here is $ allocation for my portfolio,which is extremely aggressive posture :

FFIV 40.00%
PCLN 26.59%
RVBD 21.29%
MGM 12.12%

Because of highly concentrated exposure,my entire portfolio was UP +6.09% last week while Nasdaq was UP 1.9%.As my portfolio contains currency exposure of long CAD....my highly leveraged portfolio actually showed a gain of +20.71% in Equity last week alone......

Will update every week ,based on my weekly exposure.Please note, i do not have any option in my portfolio covered or uncovered.

Good luck with your OWN strategy for 2011.

BLOG does NOT give buy or sell.

Saleem