I'm neither bullish nor bearish, just trying to read the tape. I have thought that the Dow was oversold, as was/is under the thumb of the Fed. However, with Japan showing that they are still in trouble, I don't think AG will risk the recession he would otherwise be bringing to the US economy. Even if he raises rates, he will be pumping money into the economy with his other hand. So I moved some money into Dow-type stocks, because I can smell a rotation like what happened last year at this time. Being clueless about such stocks, I put it into funds that invest in them, let them figure it out. Had nice gains today, BTW.
As far as the techs, I have always thought the G&Ks were/are good LTB&H's, and have used these dips to accumulate EMC, CSCO, and MSFT. If you recall, I had gone to 50% cash, so I had some dry powder.
GMST is more of a problem, because it is premature as a gorilla, so I have been using options there for leverage, hoping it runs soon. CREE is neither a gorilla nor king, but it has run well, so I lightened up and took profits before it sank.
JDSU was overbought, and there was way too much optimism on the thread, so I sold it. It was looking too much like AOL and QCOM at their peak, especially with predictions of a 1 trillion market cap. Next thing would have been a clubhouse. That is one of your tricks, figuring the top, at which you are very good. Didn't sell totally, still have some just in case it takes off soon. If it dips some more, I will accumulate.
Oh, still have QCOM, that is in the safe in 2002 leaps. |
