The stock market kept rallying inspite of bad economic data. Wall street like to twist the market as it want. The stock kept going up because of the greediness of Walls street. The person suffering the most out of such event is common individual investor. What Fed did is correct and it was needed as they run out of all the bullets. They still have stimulus in hand for last alternative if the economy goes bad. Fed realised the world that the economy is at "significant risk" downside.
An advise to individual investor is don't believe this Wall street rally. If the stocks keeps rallying invest accordingly. There is nothing harm in taking profit with fake Wall street rally.
I think the market will plunge little more before it gets stable. As the Fed will be pumping money in bond, Wall street guys will dump the stocks and buy the bond. The Wall street is filled with greedy people. They always want easy money out of fed. Today's reaction of sell off is just a part of their greediness.
The way to play this market is make shopping list of stock which plunges most with strong balance sheet.
Here is the safest way to play this market without losing money:
1. If the market is selling off, buy VXX, TZA, FAZ, ERY, Short SPY, DIA, TNA, ERX,
2. If the market is rallying upside, Buy SPY, DIA, TNA, ERX and Short VXX, TZA, FAZ, ERY.
For long term investment :
Buy Goog, Pot, WYNN, BIDU, X, MT, CAT, CVX, XOM, HPQ
I don't believe this Wall street safe haven of AAPL and GOLD.
I think aapl and GLD is overbought at this time. Also I am not comfortable with fact the economy is bad. People have no money, so why will they buy $499 IPAD or $299 iphone. The people who wanted to buy this gadget have bought it. Finding new buyer is difficult except oversea where it will have demand and money. I think US market for AAPL will shrink unless they reduce the price. The other problem with iphone is call drops. IPAD cannot replace PC. The demand of IPAD will shrink, its only good for business people who travels alot. People who are programmer or school going kids need PC for programming, make projects, presentation or even watch movies or chat, which IPAD lacks and it will never replace it. IPAD is toy for kids and business man for timepass.
Aapl is good buy under $350 with price target $380. GLD is good buy under $169 and price target $180.
Invest smartly !!
An advise to individual investor is don't believe this Wall street rally. If the stocks keeps rallying invest accordingly. There is nothing harm in taking profit with fake Wall street rally.
I think the market will plunge little more before it gets stable. As the Fed will be pumping money in bond, Wall street guys will dump the stocks and buy the bond. The Wall street is filled with greedy people. They always want easy money out of fed. Today's reaction of sell off is just a part of their greediness.
The way to play this market is make shopping list of stock which plunges most with strong balance sheet.
Here is the safest way to play this market without losing money:
1. If the market is selling off, buy VXX, TZA, FAZ, ERY, Short SPY, DIA, TNA, ERX,
2. If the market is rallying upside, Buy SPY, DIA, TNA, ERX and Short VXX, TZA, FAZ, ERY.
For long term investment :
Buy Goog, Pot, WYNN, BIDU, X, MT, CAT, CVX, XOM, HPQ
I don't believe this Wall street safe haven of AAPL and GOLD.
I think aapl and GLD is overbought at this time. Also I am not comfortable with fact the economy is bad. People have no money, so why will they buy $499 IPAD or $299 iphone. The people who wanted to buy this gadget have bought it. Finding new buyer is difficult except oversea where it will have demand and money. I think US market for AAPL will shrink unless they reduce the price. The other problem with iphone is call drops. IPAD cannot replace PC. The demand of IPAD will shrink, its only good for business people who travels alot. People who are programmer or school going kids need PC for programming, make projects, presentation or even watch movies or chat, which IPAD lacks and it will never replace it. IPAD is toy for kids and business man for timepass.
Aapl is good buy under $350 with price target $380. GLD is good buy under $169 and price target $180.
Invest smartly !!
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