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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?


To: robert b furman who wrote (17212)1/15/2006 1:03:00 PM
From: Rarebird  Read Replies (1) | Respond to of 25522
 
>>It is the go out hard and hold it strategy that ends up being a crash and burn result.<<

What maximizes profit in a Bull Market will usually backfire in a Bear Market unless one diversifies across all sectors and market capitalizations. For instance, the Russell 2000, S@P midcap 400, and NYSE Composite Index, led by the value stocks, entered a bull market, along with the gold stocks, while the Nasdaq and Dot.coms crashed from 2000-2002.

The major risk here is Iran. If that situation ever gets resolved peacefully, (which I doubt, since it's difficult to hold dialogue) these markets should really take off big time. I expect the Dow to confirm the new highs in the Transports, and the S@P 500 to confirm the new highs in the S@P 600 small cap index and S@P 400 midcap index. The Nasdaq will be the last to confirm. But that index, along with the high techs, has the greatest value here.

A good hedge, such as URPIX (Profunds UltraBear Inv; S@P 500), will become necessary if tensions continue to escalate with Iran; for the financial markets will not benefit from prolonged warfare with Iran, to say the least.

But I'll listen to the Markets first, and continue to buy and hold, as the Bull feeds on Fear and this is clearly a Bull market.