Whenever TAPE reacts to any event like Fed not raising rates, there is speculation about why that decision was taken, negative conclusion is rampant instead of seeing any positive.
There is an implication that Fed is seeing things or is aware of things which us mortal cannot comprehend.
Wall Street High Frequency Traders can create an environment through their proxies, that things must be really bad that even Fed is panicking.
Fed is known for prudent decision making process which generally does not suit some powerful traders, thus an effort to take advantage of void and make money.
I firmly believe that Fed does know what it is doing and they have stated clearly why this decision of not raising rates.
BUT that was not good enough for Thursday reversal and Friday's slump.......
Monday is another day and require clear headed analysis.....
IF we listen to technicians, we are headed lower to test 1867.01, which is 91.02 points away or 9.50% lower................
Let us say that for argument sake, that we may go there, but, does that mean all stocks will suffer ?
Answer to that question is a firm NO....
Instead of worrying about extremely short term market movements, we should focus on our own investing or trading strategy.....
Having your own conclusion about stocks direction is far more important than worrying about market direction.....
I do not know anyone who can call the direction of market...everyone is guessing and they are right only 10% of the time.....
Predicting market direction is a futile game.....
Have your own long term strategy with quality stocks, they generally go UP substantially over time.
Many stocks are defying market weakness, they are AMZN, GOOGL, FB, NXPI ......security stocks are starting to show life.....
It is important to find your own stocks which has good potential for the long term, energy stocks may be ripe for a sustained move.
YES...it gets difficult every so often, but there are opportunities for getting into strong stocks, which we all miss quite often.
Bottom line is, stop worrying about direction of market, instead focus on good stocks to buy, that is a time tested strategy which works over a long period of time.
Good luck with your analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem,
I keep looking at NXPI, but one part of the conference last week I still can't quite put together. Any thoughts on this exchange?
"Ross Seymore - Deutsche Bank
Why don't we switch over to the secure connected device area. It's about 20% of your sales as a whole. Last week there was a product announcement from one of your customers that talked about an integration path for a sensor hub. Talk a little bit about how you attack that market? You have your core NFC capabilities, but you have also done some other ancillary parts. How do you choose those? And how sustainable do you think those potential more ancillary parts can be?
Rick Clemmer - President, Chief Executive Officer, Executive Director
Right. So I think for us, it's clearly about focusing on areas where we have a true technology leadership. We think we are uniquely positioned to do that. The one that you are talking about, I think the teardowns have indicated that on the last couple of generations that NXP was the supplier of the sensor hub associated with those platforms and now they have integrated that into their processor, which is what we said would happen all along. We said that it was a very good business for us opportunistically, but over the long term that would get integrated into the processor."
AAPL announced its new phones in the week prior to this conference, so I was assuming the customer was AAPL that NXP is referring to, but I still can't quite understand the implications. Did NXP lose some of its AAPL business?
Here's the whole conference--very many interesting things here and despite the concerns I have in the short term, these guys appear to be a great long term winner--it's just a matter of a good entry price for me...
http://seekingalpha.com/article/3515896-nxp-semiconductors-nxpi-management-presents-at-deutsche-bank-technology-brokers-conference-transcript?part=single
Stocktrader
Hi Saleem,
You know what, I think they might be referring to a Samsung connected home platform released by SmartThings in the first week of Sept, but still I'm not sure. Maybe you have some insight?
Stocktrader
Hi Saleem,
On a more positive note, when AAPL rolls out their new car, NXPI is clearly "in the driver's seat" :)
Stocktrader
Hi Stocktrader,
I have not listened to their Q & A....
I think overall they are gaining more and more smartphone business, not only with AAPL but with all Chinese players ( as per recent report ).
Some small portion of business gets taken out by processors as built in, that is the nature of this business.
Saleem
Hi Saleem,
I saw that report about the Chinese players too last week--it sounded promising. I also remember the Chinese government was trying to see if a domestic player could have the same security features as the NXP chip, but haven't heard anything on that front in months. I think it helps though that NXP is European-based from that standpoint.
Stocktrader
Post a Comment