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The S&P 500 still stuck in the 1400
By Rob | May 14, 2008
“Trading is 98% psychological. It’s a mental state of mind based upon your beliefs of what may happen. Books, systems and technical indicators can only take you so far! You must accept and understand that the market is all in your head. It is you versus the other trader.” C.P.
In this market, you pick individual stocks based on themes and trade around them. This is what me and Mike Case, a trader from Boston spoke about tonight and some of us are doing this very well. The general market is slowly recovering, but the oil factor is still unresolved and could derail the bull. The NASDAQ index shows most strength at this point, while S&P 500 is stuck in the 1400 range which you could see from the previous posts. Commodities (CRB), Coal, Railroads, and Steel ETFs are at all-time-highs for 2008. McCain mentioned something about nuclear in order to increase his chances of election and I took a look at the NLR nuclear ETF - nothing, looks like it is sleeping; I called Goldman’s analysts they said dont expect anything until 2010. South Africa (EZA) and Russia(RSX), Brazil are breaking out. An interesting fund I am following CUBA is about to break out. Also, dont laugh at Martha Steward (MSO); her stock is up 60% since its low this year
The NASDAQ is now down 11% since its top in 2007. DJ Transports are down only -2%; Dow Jones -8.5%, Russell 2000 -14%. S&P 500 -9.7%. FTSE ( British stocks) are also down -7.5%, Hong Kong and India - still down -20%, Japan -23%. So, the average stock on NYSE is down -8% from its top. Gold and silver are very weak, almost over sold. The commodity ETF (DBA) is also down -14%, strange because the CRB index is almost at record high.
THE S&P 500
THE XLF
Bonds were still being sold, and the 10-year is now as we predicted at 3.9% yield.
And this below is Apple (AAPL) which is coming back, along with RIMM in a big way
From Harry: Hewlett-Packard is buying Electronic Data Systems (EDS) for $13.9 billion.
H. Ross Perot started EDS with $1,000 in 1962. That’s an 88.25% annual rate of return. That’s better than any hedge fund or Warren Buffett has done. Need I bore you? The best investment is your own business. Start one today.
Starting tomorrow, May 13, the launch of 3 new ETFs by WisdomTree will give investors the opportunity to invest in the Chinese Yuan (CYB), the Indian Rupee (ICN) and/or the Brazilian Real (BZF).
The new RIMM phone BOLD is not going to have a touch screen, but it will be a faster Internet machine (3G). It will run Microsoft interface along with the usually BlackBerry software. By looking at it, it looks great, but I still love my I-phone better, for me all these buttons are annoying and a big screen is a must.
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