Thursday's Update

I think we'll get over 1000 in S&P in few days. Bulls will try to close above that but the number that I'm looking at is 1020. We may see another correction after we get to 1020. I'll start taking some profits as we get past 1000. Let someone else have the last 2% and be the bagholder.

Even if we go past 1020, the market will correct and re-test 1020 which will provide you with another opportunity to go long. I think we'll see a lot of selling at 1020 that will take us down to 920-940 and resume this trend upwards. If you bought stocks on margin, it is a good time to reduce your positions and get out of the margin.

I am out of everything.

Everyone's Bullish

It's amazing how quickly the sentiment changes. Just few months ago, majority did not believe that this rally was for real. Now many are saying that the recession is over. I'm not sure about the recession but market has confirmed my view that the worst is behind us.

The current scenario is similar to late 2007/ early 2008 when everyone thought that the decline were just a pullback, now we are in the other extreme. Going forward we'll see sharp corrections and a new high. If you missed the earlier move don't worry, markets are going to be here tomorrow and there will be many opportunities for the patient person.

Core List

I looked at the performance of my recommendations vs. S&P to see how well or bad we performed. One of the list that I have suggested was up 18% vs. 11% for the S&P from July 10th to today.

The other list is up 45%, if you were to invest equal amounts in all these stocks.

Here are the symbols. It may have been too late to chase these stocks at these prices but next time when there is a correction, it may be a good idea to buy these.

The best way to do these is go get 10-20 people, form an investment club and invest $5,000 - $10,000 each and get the portfolio to $100,000 and put equal amount of money in these stocks.

If you are interested in the investment club...let me know.

Symbol
BIDU
CKSW
EXM
FEED
FUQI
GMCR
ISRG
JAZZ
JRCC
NOVN
OIS
PCLN
STEC
TRGT
TSRA
VICL
VIT
VPRT

Amazing Results

I got a call from a friend who bought three stocks from my recommended list. FUQI @ 17, STEC @ 24 and ISRG @ 142. All three stocks are doing very well and ISRG jumped 25% today. The best part of all this is that the scans that I run do work and my model still works.....

Thursday Update

The markets took over the resistance and if we manage to close above 950 in S&P, there is no need to take profits here. Hold tight...we are going to see 1020 soon.

Critical juncture

We are at a resitance and there is a chance to see a sell-off here that takes us back to 880. If your time horizon is long-term, there is no need to sell here but hold on to your stocks. If you are a short-to-medium trend trader, you might want to take some money in the next 2 days. I am holding my stocks here since I plan on holding those for a nice ride.

Here is a weekly chart of SPY and as you can see that we are just at the last high.

I'll add to my positions if we close above 950 in S&P.

Tuesday's Update

It seems the market has found the support here and we are heading towards 1000 in S&P. Intel came out with their earnings and they beat the estimate by 10c. The futures are already up big after the news...the main thing is if we can build on this tomorrow. I got out of SUNH...but holding PRGN and ATPG.

Thursday Update

880 is still looking strong as the market went below it but the buyers came and were able to close above 880.

I bought some ATPG, PRGN and SUNH at the close.

07/08/09

As you may have noticed that I have been unable to update this blog regularly due to other commitments. I was expecting 880 to hold and am still neutral until we close below 880 on a weekly chart. The break of 880 should bring in many sellers that could take us down to 800 (best case) and 600 (worst case).

It is almost impossible to figure out what the market will do on a day-to-day basis. Personally I feel that we have seen the bottom but I have been wrong many times. Here are few stocks that showed up on my scans. These stocks are selling at a significant discount while their revenue and ROE are still good. I consider these to be value stocks that should rebound very nicely if the market shows some strength, in addition to that these stocks are selling at less than their book value which provides a margin-of-safety.

FVE: $1.90
PRGN: $3.39
ATPG: $5.38
MTXX: $5.64
TBSI: $6.77
SUNH: $9.22