Greece is on the final leg to getting a consensus, Coalition will be broad based which should bring sanity to Greece political scene.
Once we get an announcement of coalition government, markets will give a "huge sigh of relief" & rally.
Markets have been held hostage for a long time in this gruelling Greek saga.
Once European debt issue is in a "go forward mode", markets can go on to do what it usually does, trades on fundamental of each company.
Many stocks have been battered in this endless "risk off / risk on" market....
Commodity based stocks are beaten down the-most, they should outperform in a "non Greece driven market"
Allocation of trading dollars or investing dollars should be done judiciously, based on "gain potential" NOT on what you like.
Stocks have one purpose only, is to make most money for your allocated dollars.
I expect S&P 500 to break above 1356.48, which will be a new 52 wk high.
I also expect markets to go in a normal "bull market" trading pattern.....an ascending TAPE, with usual periodic pullbacks.
Here is $ weighting of my portfolio :
LVS 26.03%
POT 19.09%
JCP 18.24%
AUY 12.04%
RVBD 10.99%
CSIQ 7.16%
TLM 6.45%
As you can see, that i am well diversified in many sectors. Most stocks are well off their highs, more like near lows.
It will be wise to allocate dollars in many sectors as most stocks are ready to move UP.
Good luck with your OWN analysis & comfort level.
BLOG does NOT give buy or sell.
Saleem
PS....Sunday all muslims are celebrating Eid-Ul-Adha,
a festival of sacrifice, I will be busy Sunday with family & friends.
7 comments:
SALEEM
Please enjoy your holiday! Please send me information
on your holidays some time! Love to learn stuff
thanks, and I just got back from the cruise--wow
what a good time!!
C
Hi C,
Thanks for your interest in our Eid holiday.
Muslims have only two holidays in a year.....
First comes after the fasting month of ramadhan called Eid-ul- Fitr which is celebrated for 3 days.
Second one is Eid-ul-Adha celebrated after 2 month & 10 days of first.....we sacrifice a goat or lamb individually......last for 3 days also......
So first one is comparable to Christmas & the current one is like Thanksgiving......
I am happy that you are back from vacation..I am sure you will have "withdrawal of sound & culture"
Saleem
are you 100% invested?
To Stocktrader and all:
APPLE news that is well said:#8 Apple (AAPL)
Perhaps the most valuable thing investors can learn is that stock prices are determined by future (not past) expectations of a firm's business fundamentals, and by extension, its future free cash flow stream. The uncertainty of the future--and not the certainty of the past--is what drives stock prices and their volatility (after all, if the future were known with certainty, stocks would trade at precisely their known fair values).
This consideration is important as we evaluate Apple's (AAPL) fiscal fourth-quarter results, which came in lighter than what the Street had been expecting. Despite the miss, the iPhone-maker guided its fiscal first-quarter above consensus estimates, which should and always will trump any earnings miss as interpreted by the market in the previous quarter. Importantly, the last quarter (Apple's fiscal fourth quarter) is now behind us, and all that matters is what's ahead in the future for Apple. And, in Apple's case, the future is bright. We're maintaining our $531 fair value estimate.
The iPhone-maker posted quarterly revenue of $28.3 billion and quarterly net profit of $6.6 billion, or $7.05 per diluted share. Compared with last year's quarter, these numbers represent significant growth in the firm's top and bottom line. During the period, Apple sold over 17 million iPhones (21% growth), 11.12 million iPads (166% growth), and 4.89 million Macs (26% growth). Much of the disappointment in Apple's performance was due to a shortfall in iPhone sales which caused roughly a $0.25 bottom-line miss--the Street had been expecting several million more iPhones in terms of unit sales. However, the leak of the launch of the features behind the iPhone 4S ultimately swayed consumers to wait for the upgraded phone. And with Apple selling over 4 million units of the iPhone 4S in a three-to-four day period after the closing of the recently reported quarter, we're far from concerned about any slowdown in this key profit driver.
Apple's cash flow generation continues to be robust, and the firm now holds more than $81 billion in cash on its balance sheet. As mentioned above, Apple's guidance for the first quarter of fiscal 2012 also came in better than expectations, with revenue anticipated at $37 billion and diluted earnings per share of about $9.30. We fully expect Apple to deliver on its guidance for next quarter, but we are watching developments at smartphone makers powered by Google's Android, as well as developments in the tablet market, which will witness the release of Amazon's (AMZN) new Kindle Fire in mid-Novemb
Stocktrader
Hello all
Taling about APPLE deep in hte money calls:
As best as i could see it playing out in the option market is:
the Dec $370 at $36.20 --that is a $6.20 premium over the $370 strike price....
I like the idea that my Dec 20 allows for the Christmas rally to be built in to the stock price and we could make a safer profit as Europe may clear up by then..
Where as: The Jan 2012 calls are :
the Jan$370 at $43.00 is a $13 premium and a lot harder to make a profit from....as it is more expensive but does allow more time to build a higher stock with the earning play!!
Which one do you like and recommend
IMHO November 20 calls are not as attractive to me?
thoughts?
Thanks
Hey c,
I realized after I posted about the Nov calls that you would likely want a longer dated option and it will capture more of the pre-earnings run.
Given my upside target is 440+, the higher strikes/lower option price calls will generate better returns, but the lower strikes are obviously safer.
It seems the Jan calls are much more expensive due to the fact that they likely encompass the earnings release, so the Dec calls might be the play. The 370s give you about 10 to 1 leverage so a move to 440 would give you a 100% return. I'm not sure if you're looking for this kind of leverage, so you might consider a 350 or 360 call? Also keep in mind that futures are looking higher for Monday so the option pricing will change, possibly making the 370s the correct call again if AAPL gaps up 5+ points.
Hope this helps some and good luck with your choices! :)
Stocktrader
GOOD Morning to all
Cold in DC... the Sun shine is awesome!
Looking at the APPLE calls for today buys
and INTC
INTC--it got upgrades and MSN rating of 10!!
S&P 3 stars, Argus rating of BUY BUY and J Cramer kiss of Death BUY BUY BUY :):) RSI of 55% and price target of $35! Nice chart too.
I like it for the earning play, great earning and good announced forwards earnings, chips are back in the sweet spot! Just my humble opinion.....
thanks to all for comments and shared knowledge we have some sharp people here...
C
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