Entire media has gone on overdrive from one crisis to another crisis....
Media has also gone overdrive on some key benchmark like S&P 500 1566.....
Traders seems to be fixated on headlines & reacting to them on a consistent basis.....
But many stocks have ignored most crisis & kept on making new highs.....
Quite often we get a chance to buy strong stocks cheaper, but traders worry about imminent collapse of S&P 500 or many stocks......
BUT...reality is that strong stocks are in a major bull market of their own & keep making new highs....Many of you know about those stocks like GOOG,LNKD,YHOO,BAC..but keep ignoring them for home runs which lags badly in best of TAPE......
Stock market is full of trend & once trend is established it is important to have some or all of them in portfolio.
They say sometimes "little knowledge is dangerous" but experience traders believe that "they have all the knowledge required to understand stock market"
BUT ..in hindsight stock market is based on simple things like buying strong stocks instead of bargains, staying with trend until it changes.......
This TAPE has reinforced that strong stocks is the only way to make serious money.......
What i have done is divided my 88% allocation in this manner :
YHOO 37.98%
BAC 27.66%
Strong performer has 65.64% allocation
BBRY 22.65%
JCP 11.71%
Weak / speculative has 34.36% allocation
I intend to keep this mix until they either stop working or find stocks which has better risk / reward....
SO......bottom line is.... ignore headlines & concentrate on better entry into strong stocks, this strong bull market will last a long time & S&P 500 is headed much much higher....
Do not worry about technicals too much, this IS a fundamentally driven TAPE.
In a trading market you worry about technicals......
It is time to "change with TAPE"
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Stocktrader,
Sold YHOO @ $23.81......
Saleem
Hey Saleem,
YHOO has done so very well for you--congrats on that!
I actually just sold some FDX @ 96.91 and bought more MRIN @ 15.424. It's not so much that I think FDX is bad, but it was an easily available stock to sell and I wanted to add to MRIN here on the further drop.
Stocktrader
Hi Stocktrader,
YES..YHOO has done well repeatedly for me...@73 RSI...it was getting scary....
Bought RDN @ $10.28....
Saleem
Hi Stocktrader,
There is a piece on MRIN by seeking Alpha below YHOO quote...its worth a read.
Good luck with MRIN.
Saleem
Hey Saleem,
Yes, I read that over the weekend and it gave me more confidence in the story and comparative valuation. Today's dip was the perfect chance to add a little and it is now up to the $ level of some of my other secondary positions--at 15.50 I feel pretty good about that.
Stocktrader
Post a Comment