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Strategies & Market Trends : Beat the Market @ Silicon Investor

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From: Western Rookie4/9/2012 1:40:28 PM
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Psychology.... its awesome... my psycho meter is going full bore right now and topping out at 10... Especially here on S.I.... Cat fights all over the place LOL... That is a sign that everyone in the materials sector is not having fun.

Well I am... cuz all I own is graphite stocks. But for the rest of you... its been a very depressing year.

I say BUY THE LOWS as these materials stocks skip along the bottom and hopefully prepare for September. ITs an ugly statement to make considering I push materials stocks like pimp pushes hos or a main and hasting dealer pushes crack...

But hey... 3 themes that are working... Biotechs, Graphite, and Oil and Gas (well maybe not the GAS part) unless you happen to be sitting beside me... maybe then you might think the gas theme is working.

The contrarian in me is saying buy the weakness but my brain is telling me to hold off on all materials until August lows. China is not going to fall off the face of the Earth.

You might want to use the next 4 months APRIL MAY JUNE JULY to pick away at the Cream of the Crop for timing a Chinese soft landing or at the very least a September... "get me the fak out of materials rally starts."

The China question should be answered within the next 6 to 8 months.

If you start seeing these stocks breakdown through established bottoms... then you might want to rethink this this bottom fishing strategy.

I have a bias towards a Chinese bottom this year... but projecting and timing is a tough business and more like making a best guess.

And of course I have extreme bias.

If China was really in the tanks. I would expect Copper to be trading at much lower prices. Well below $3. I would expect iron ore to be under $100. It is not.

China is just in an extended lull since 2008.
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