Archive for the ‘Economy’ Category

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Is recession over – Future of US Economy – July 2010?

Friday, July 23rd, 2010
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This week has been extra good for the market. Several big positives came into limelight:

  1. $BP’s oil spill is finally seems to be getting close to fixed
  2. $Apple recorded record earnings due to more than expected strong sales of iPad and early sales numbers for iPhone 4
  3. $F, $MSFT all recorded awesome earnings

European bank’s stress test result come out today. Different investors have different views about these tests. Some think they are pointless and most of the banks will pass the test. Others tend to disagree and are actually contemplating the future of economy based on the stress test results.

Germany and UK both reported much better numbers than everyone had in mind. Check out this latest article which details out the earnings for major companies in the past week or so:

Stocks May extend rally this week

So in the wake of all this positive news, one has to wonder whether we are out of the cursed spell that brought all of us down since April. I sure hope so. Jobless claims continue to rise despite the awesome earnings reported by fortune 100 companies. However it is very important to understand that jobs are always created AFTER the market has turned around a good bit. Companies do not want to hire new people if there is too much uncertainity regarding where the economy is headed. So while it definitely helps to see green on my portfolio and it is also rewarding to know that people who are looking for jobs are able to find jobs to support their families and send their kids to school.

People are saying if somehow DOW can get back to 11,000 range, we can sit back and enjoy the ride all the way out to the promised land. Lets sit tight for trading session to see where we are headed

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Posted in Economy, Is it time to invest? | No Comments »

$aapl where is Apple Stock Headed – July 2010 After record Earnings

Wednesday, July 21st, 2010
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So Apple reported their earnings on Tuesday night on 7/20. Highest ever earnings reported by Apple. Apple rose almost 20$ within a matter of 1 day and then during the day entire market decided to take a U turn. Apple could not contain its gain during After hours trading. Apple however did move up from its last close on Tuesday right before earnings. So is that good sign or a bad sign? No one really knows. Technical traders will out claiming one thing, fundamentalists will tell you another thing, Apple lovers will describe a whole another story.

Best way to trade any stock is usually based on your guts. You have to gather info from various sources and then call the shots yourself.

Lets look at what major factors Apple has currently:

Positives about Apple during Q3

  1. Record sales for iPad & iPhone
  2. Upbeat market sentiment about $aapl after earnings
  3. Superior products
  4. Steve Jobs did an awesome job by retaining Apple lovers by admitting to slight problems with very limited number of iPhone 4.
  5. Continued research into product improvement
  6. New product line up – This is unannounced as of right now. This will unfold in near future on its own
  7. Potential Introduction of iPhone with other careers like Verizon & T-Mobile
  8. Launch of Apple products in other countries

and the list goes on and on and ……

Negatives about Apple during Q3

  1. Consumer Reports claim about Antenna problem with iPhone 4: Well as Apple has reported, problem is limited to very few people. Less than 1 percent of total iPhone 4 owners. So this probably not a such a huge deal
  2. Apple has become too big. Now its time for others to try to bring Apple down. There will be several companies conspiring. If Apple is truly Amazing, it will come out even stronger. If $aapl breaks 273-275 range, it appears it might soar to 330$ very soon. It will be fun ride thats for sure.
  3. Overall economic conditions: Well no one can do anything about that. But can you really stop a company expanding 78% year over year from reaching new highs every day, every month?

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Posted in Economy, Smart Phone Industry, Stock pick, Technology | No Comments »

Markets Plunging All Over the world – Time to bet down? $SDS

Wednesday, July 7th, 2010
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Its very depressing to see your portfolio in red every day five times a week! Obvious question in everyone’s mind right now is what to do! People have the tendency. There are several ways to make money in a bear market, some of them are listed below:

Short stocks: Shorting can be very profitable in a bear market like this. However keep in mind to be vigilant. You need to always remember that MOST people lose money in trading, specially in their first year of trading. So if you decide to short a stock, be sure to keep an eye on the stock price on a regular basis. One good news is all it takes for the market to rally. If you see signs of bounce play, thats a sign for you to check out!

Invest in Reverse ETFs: These ETFs are inverse of the popular stock indexes. Shares of these ETFs are traded just like any other share. SDS is a very popular reverse index ETF to look at. Its actually double inverse of S&P 500. So it doubles the drop in the S&P for you. You can make really good money if you play it carefully. Again remember, market is for losers!

Buy at dips, sell on news: Thats the old tested techniques. Buy after a stock with good fundamentals has dropped in few sessions and see on the immediate bounce. Do NOT hold stocks for too long when market is volatile.

Cash is the king: Be sure to keep some cash in your account so that you can use it when the unexpected happens and you have a lifetime opportunity to go “all in”!


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Posted in Aftermath of Stimulus plans, Learn how to invest, investing stocks and bonds | No Comments »

Are we headed towards Dow Jones @ 11000?

Thursday, June 17th, 2010
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After almost a month of bear market, it seems like we are heading towards the green land again. No blood on the street does look awesome. However investors are still being very careful. Job loss claims seem to be rising once again; that could be an indication of economical growth slowing down again!

Europe seems to be coming together with Spain being able to pay their debt on time. BP’s fate has been decided after them depositing 20B USD in escrow account. There is a good chance that BP will get bought over by a large oil firm. Their stock has gone down almost 50% in past few weeks, which does not reflect nicely on their cash position either after cutting out the scheduled dividend.

There might be some more sell off planned for next few trading days but overall market sentiment seems to be good. That is purely based upon strong US economy indicators such as retail sales.

Lets keep cash in the account to take advantage of any unforeseen dips in the market! Be sure to chase the solid stocks with promising EPS. This is the time for strong companies to become even more stronger.

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Posted in 2009 Recession, Europe Crisis, Is it time to invest? | No Comments »

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