FRIDAY the 13th VAMPIRE BUYING, RALLY as Predicated, Wednesday was a bottom, Thursday was below the bottom: This RALLY is sustainable, since liquidity is starting to come out of the oil and oil service stocks.
Look: when an Middle East (ME) Oil scare can do what it did (biggest point drop on DOW Thursday) then you know that the OIL BUBBLE IS BURSTING.
Parking money, and with it a large share of the total market liquidity into any PARKING LOT COMMODITIES (Oil, Drugs, Retail, Financials since money products, and money is a commodity too) is a danger to the whole market, because short term overvalued commodities can not be used or stored without expense and that immediately hurts forward looking earnings, (IF IT DOES NOT GET SOLD IT DOES NOT BECOME A PROFIT)
[Higher Prices/Lower Demand/Higher Supply = LOWER PROFIT MARGINS].
Therefore the market quickly discounts these oil and commodity stocks, THEY DROP LIKE A ROCK, so get out of them while you can. The real story was not the rotation out of techs (incidentally oversold beyond rationality) but the unreported and apparently un-noticed or unseen rotation from the so called "SAFE HAVEN" COMMODITIES into SHORT TERM TREASURIES AND GOLD (not long term 30 year bonds)....WHY?...to preserve liquidity, to have SMART MONEY to bottom fish and buy high tech and real GROWTH company bargains.
THE SMART MONEY IS BUYING TECH TODAY. These Rallies will continue, and form a basis, a foundation for a series of bullish rallies, RALLY AFTER RALLY THROUGH NEW YEARS, this will create positive market sentiment even quicker than the pessimism and oversellers we have seen lately.
I have made a ton of money just today on CSCO, INTC, PALM, even AAPL is up, AMD is soon to follow, the BLUE CHIP CHIPS ARE GETTING REWARDED and will continue to RALLY, this is the ROTATION that one expects after a shake out, the Shake out is over, the market was shaked and baked, and now will move onwards and upwards. Keep buying BLUE CHIP TECHS AND CHIPS and low Price/Earnings P/E ratio high tech high growth stock bargains.
If it's Green today (on the ticker) keep buying, VAMPIRES LIVE FOREVER ON THE BLOOD IN THE STREETS and this is what we are seeing this FRIDAY THE 13TH.
I am,
Truly your$,
-Crystal Ball
Peace to all, make love (and Wake up, MAKE MONEY) not War. |
