Morning Ike...
i am packing for a well deserved vacation to St. Martin this week....
i'm feeling pretty secure in my current positions...i bought a lot of stocks on sale this past week....i could have been better selling earlier tho...i did not move fast enough and left some good dollars on the table...
but i am getting better at this...the ebbs and flows of the markets are becoming readable , what with your help, and my understanding of the dynamics at work here..
gee it took me a long time to get this...and...not for ONE minute do "I" think i have it down pat<VBG>...heck this market can kill you on the spot...in a second...
but...i read it, think it, and most of all trade it, better than ever...
in the Phila newspaper this am, i read that we had 94 billion in IN FLOWS for Jan and Feb..last year the same tine frame had 18 billion...
this factor alone almost guarantees a floor in these markets...money pouring into 401K.s, IRA,s Mutual Funds, Hedge Funds, and brokerage house accts at even greater speed now...the wealth effect is placing an underpinning to the markets, as the world's people, sees and feels better about themselves and their future..
and Ike, what with the investing & trading public, NOT PANIC selling...anymore...(the net sellers are the fund managers that HAVE to try and show some profits in their respective funds).., we have a solid base from which to trade...
but us regular traders???? we buy the dips, and sell the rallies...it is becoming increasingly clear, that as long as the fundamentals are not changing radically, we can safely trade these markets and feel confident that our actions won't get side tracked by any MONSTER SURPRISE, lurking out there in the weeds<g>...
as for stock selections...the big caps always lead this market..and while there are dips and selloffs in these big name stocks, they always lead us back toward the top...
what with MSFT in the news daily, and others still correcting a bit..more volitility is certain this week and into the start of earnings season...but the earnings of these companies will be nothing short of steller...
and earnings and profits move the markets....the sideline noise and events only have a small daily impact on these type stocks...
every year we see this carnage develope, as the markets correct the excesses that WE create, and they create...it always brings these indexs back toward the norm...sort of in the middle from the very top...
and then up we go once more...
the nets and bio techs just now on P&F are turning back up into BULL ALERT Status from very oversold levels...an important area because they have a lot of room to run from here...my list hasn't changed...same as Fri...only they sure are cheaper<g>...
as for the bio techs..we must and should own a hand full of these stocks, becuase the upside rewards are staggering...as well we should have some of the Big Pharmas too...
but the TECHS RULE, the SEMIS TOO, incredible gains in a very short time...
my stops are in place, only a bit looser than normal...and i am going to be fully invested over a broad spectrum of stocks and sectors..weighted in tech-bio-and nets....
i'll leave the value smokestack stocks for Tiger Management...
as always my best to you and yours...
OJ |
