The market fell (not crashed/swooned/whatever) today on heavier turnover. Barely higher, however, as it was just a few mill shares.
Nothing changes in my assumptions. The market has proven resistance at the moving averages that I mentioned a couple days ago yet however as we hold the lows the bears grow. This helps keep me bullish short term.
I monitor a lot of chat rooms and KNOW that the ones that "chat" are around 75% bearish. This along with what I see on the TV, read in the paper, and hear from people continue to help me stay strong while the past two days have happened. I have had a good feel for the market all year long and no reason to change now.
Not only that, look at what medical stocks have done and tech charts are now starting to do. Swing-long trades: DGIN ABRX URBN MCX MUSE HSP POWI BBI FRGO
I have a lot of technology stocks popping up on my scans while the market falls, so I continue to believe tech is leading this next rally coming up.
Oh yeah. Time to admit a fault and admire a good....
ISSC. Bad trade. It reversed today. You cut your loss and move on.
INNO. I posted this chart as a long on April 20th and have been long since Jan 31st. I sold 1/4 today up 63%. Holding other 3/4 for further price appreciation according to chart.
3 comments:
The sentiment these days is definitly bearish. I agree that a bullish bias will be more profitable for the second half of 2005. The one point of disagreement is that buying tech stocks is the way to play it. IT is the most OVERVALUED sector relative to the S&P on a forward earnings basis. Healthcare as a sector is also slightly overvalued, but biotechnology is undervalued with the sector.
commonstock.blogspot.com
According to the charts, techs is the way to play it. DIOD TEAM MSCC SY EMC STTS IDTI STMP DGIN NTAP NVDA PRGS. All of these charts tell me the market does not care that they are "overvalued." To be honest the forward looking P/E's on these stocks are quite cheap.
Remember my friend, the greatest stocks the past 50 yrs have started with an average p/e of 37. CSCO started its run with a p/e of 76.
p/e's are not what the market cares about. foward looking earnings and sales growth and continuosly beating analyst estimates is what drives the best stocks higher by funds.
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