Sunday, January 16, 2011

2011..WK 2...so far so good......

SO...here we are @ the end of wk 2 of 2011,we see lot of green for those who KNOW this is a "strong bull market".

Sign of strong bull market is ....that we do NOT go down with lousy jobless claims,or with China increasing reserve requirement......before even a hint would have tanked this market.....

SO when market do not go down with bad news PAY ATTENTION.....

In my OPINION,we have another THREE years of this bull run..so FOCUS more on your stock selections than trying to be a "market PUNDIT"

CAN you PROJECT where some of the stocks will be in THREE years from now ?

Then only you will be relaxed & stay in this market with CONVICTION......

YES..you can trade, BUT NEVER stay OUT of this market...that will be a FATAL mistake.

Market IS SMARTER than all of US........

Just think of Doug Kass who has been trying to "tell the market" what to do ? he failed @ 1000 TOP,again @ 1130 TOP......?he has MISSED tremendous GAIN & actually LOST equity with his WRONG call over & over.......just an example of what NOT to do......

Pay attention to market TAPE,it is as CLEAR as it can be.

Pay attention to close,that defines a strong bull market.

YES..we will correct from time to time in a range of 3% to 5%.....that is normal....but that will be a buying opportunity of market leaders...

Please AVOID buying so called BARGAIN stocks,where gains will be limited....

In stock selection...FOLLOW THE MONEY.......

Market reward is HIGHEST in stocks where MONEY is concentrated.....

Our likes & dislikes do not matter for the market,we all need to learn from TAPE.

Here is my current portfolio allocation as of Friday :

FFIV 37.37%
PCLN 23.66%
RVBD 19.60%
MGM 19.37%

As you can see that i am highly concentrated in 4 stocks,plus long CAD .....

On a personal note, last week gain in equity was 9.16% ,gain for 2 wk of 2011 is 31.77%.

Good luck with your OWN strategy.

BLOG does NOT give buy or sell.

Saleem

No comments: