Window dressing week is upon us!
I think the selloff last Thursday and Friday could be done for the time being. This is the week where funds get to "fool" the investors by buying stocks that are hot and selling stocks that's been cold. That way, they don't have to explain to investors why they're in bad stocks. (This never really made much sense to me. I thought investors want to know whether their accounts are getting fatter or thinner.. lol)
This takes us to October. You know, so many people are expecting a big selloff this Fall, we may actually rally. We already have in September!
As you know, tech stocks are now leading the market higher because that's where the funds are headed. Oils and commodities are still being sold. Sector/Industry rotation can be brutal for the Johnny-Come-Latelys. That's why Jim Cramer always say, "Diversification is the only free lunch." He's right, you know. If you only invest in one industry, you better learn to be able to stay on the sidelines with your cash and do nothing when warranted. Else you will lose your shirt when the big boys move their money into another industry/sector. That's what's been happening to the commodities and alot of people are losing alot of money there. The Johnny-Come-Latelys are enamored with the once high-flying commodities and the big bucks are now selling it to them. Just like the year 2000, another group of investors who just got into the market will get bruised and battered and get sent home to tell their loved ones that the stock market cheated them yet again. Don't worry, they will be back to repeat another cycle.
I could be wrong, but i think the cycle always starts with technology. And that is where we are at right now. I think you should now have some money in tech and sell at least 1/2 of your other industry/sector holdings. If you owned oils in the past several years, there is no reason to still be holding 100% of your oil holdings. At least 1/2 should have been sold already. That money can now be redeployed to technology. If you still own oils, you should only be in good big cap oil dividend-paying stocks. If you are in speculative oils, your oil stocks could be wiped out to oblivion when the oil bear market hits.
Beanie
This takes us to October. You know, so many people are expecting a big selloff this Fall, we may actually rally. We already have in September!
As you know, tech stocks are now leading the market higher because that's where the funds are headed. Oils and commodities are still being sold. Sector/Industry rotation can be brutal for the Johnny-Come-Latelys. That's why Jim Cramer always say, "Diversification is the only free lunch." He's right, you know. If you only invest in one industry, you better learn to be able to stay on the sidelines with your cash and do nothing when warranted. Else you will lose your shirt when the big boys move their money into another industry/sector. That's what's been happening to the commodities and alot of people are losing alot of money there. The Johnny-Come-Latelys are enamored with the once high-flying commodities and the big bucks are now selling it to them. Just like the year 2000, another group of investors who just got into the market will get bruised and battered and get sent home to tell their loved ones that the stock market cheated them yet again. Don't worry, they will be back to repeat another cycle.
I could be wrong, but i think the cycle always starts with technology. And that is where we are at right now. I think you should now have some money in tech and sell at least 1/2 of your other industry/sector holdings. If you owned oils in the past several years, there is no reason to still be holding 100% of your oil holdings. At least 1/2 should have been sold already. That money can now be redeployed to technology. If you still own oils, you should only be in good big cap oil dividend-paying stocks. If you are in speculative oils, your oil stocks could be wiped out to oblivion when the oil bear market hits.
Beanie
posted by beanie11111 | 1:12 AM
16 Comments:
you still think market will go up from here? or are we headed down to 50EMA?
I think we should be ok this week. Window dressing should limit the downside.
Tech is very strong today, and is lifting the nasdaq.
AKAM, AAPL and GOOG are my favorite tech stocks.
what do you think of NGPS, MA , GIGM?
anonymous,
NGPS looks good. GIGM looks good but may need to consolidate a bit. MA was a great buy in the low 60's this morning.
I went for a nap 2 hours ago being well positioned in tech. I am very happy to see the nasdaq up this much.
I believe MA is already done dropping this morning over nothing. I wish i was paying attention to the stock this morning.
do you think this is a fake move by the mkt on the upside ?
anonymous,
I hope not and i don't believe so. There has been so many bears leaning toward the sept/oct collapse. It hasn't happened yet. So i would go with the tape right now. We are somewhat overbought today, though. Still, i recommend staying long until the steam actually runs out. I suspect it will be tomorrow or the next day. No matter what, i think we will end up higher this week.
AAPL finally not messing around anymore. Go AAPL!
lol
what is realistic target on AKAM and GIGM?
RVBD holding nicely. I certainly would like to see a correction.
anonymous,
GIGM is a stock i mentioned as very speculative and that you shouldn't make your grandma buy it. I am not going to comment much on it. But it looks like a correction is due before moving higher. The $10.50 support should hold well. It could actually go to $20. Note that would take the stock to around $1 billion market cap (which is alot). You might want to check with names like NTES and SOHU as a comparison. Look at the revenues and earnings of the other 2 stocks and compare it with GIGM. I do not own GIGM.
AKAM is a long term hold for me, although i daytrade the stock as well. Great daytrading stock AKAM is. I am hearing from a friend that Jim Cramer said that AKAM reminded him of Cisco 15 years ago. Hmmm... Hmmm.. Hmmmmmmm... I also hear that he could be a great contrarian as well! lol. I certainly don't want this to be the top for AKAM! Game over so soon? Boy, we barely started. Don't hurt us, mr. Cramer!
GIGM: I just had a chance to check out chinese names such as SOHU and NTES. They kinda make GIGM starting to look a little pricey. However, GIGM broke out of the cup-and-handle basing just 2 weeks ago. So there could very well be some more good upside. It has a really nice chart. You decide. If you know that you won't be holding GIGM for the long run, then you need to consider taking profits at some point. Maybe at $15? Maybe less? Maybe more? Or maybe setting a stoploss under $10.50? No one ever go broke taking profits, especially on stocks they don't plan to hold for the long term.
RVBD: wow. A spiteful close. Let's chalk it down tomorrow. So all of you can get a piece of the platter.
Pamfla,
gosh, alot of people got hurt with CTIC after their stock offering. On the bright side, the company now has money to run their business - your money! lol
It's gonna consolidate for sometime until the next good news before running again. Could take awhile. Sorta like ACOR. That is the nature of nonprofitable biotech stocks.
Frankly, if i own CTIC i wouldn't know what to do myself, except to sell it and redeploy to a better stock. I would also vow not to ever buy these types of stocks. Consider the loss a price you're paying for the lesson.
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