I had promised that I was going to start my own thread regarding stock investments and the markets. So many things have happened since last time I was here and I really do not feel like sharing my knowledge. But a promise is a promise and there have been few people that have emailed me and supported me.

This thread will deal with investing in the stock markets. I will not discuss individual stocks but discuss ETFs like SPY, DIA, IWM and QQQQ. The one good thing about trading ETFs compared to individual stocks is the the ETFs provide instant diversification among similar companies within the same sector.

I will post more as we go along, regarding entry-price, profit-target and stop-losses. I do not think that any ETF is good or bad. It is good only if I'm making money and bad if I'm losig money.

If you have not been in the market so far, please read this as an information piece only rather than my recommendations. There is risk involved and you should know how much risk to take on any position.

Any suggestations, comments and criticisms are welcome as long as it is market related. If this thread gets out of hand and we start discussing off-topics, I'll stop posting.

Have a happy new year!!!! May 2007 bring you and your family lots of joys and riches.

Bri: I think you're missing something here. If you want to follow this strategy you have to trade ETF's only ie. QQQQ, SPY, IWM and DIA. You cannot apply the same rules to individual stocks. For individual stocks you want to buy value.

Here is another book, which is very good. Rule #1 by Phil Town. It will help you with stock selection. There is no need to buy 100 shares of 10 stocks, your transaction cost will be very high, it is better to own 2 good stocks.

Emini,
thanks for the inputs again.

Will order that book definitely. Looks great on reviews.

Good luck to you.

Best!
-B

i have been out of the market for a while now. the recent run down has pretty much lost everything gained since february. Kinda sucks but I think the market should go back up after a bit more correction.

The blame on the subprime market is without merit I think. While it does have some bearings I doubt the market should have reacted in that way. theoretically speaking that information has been "abosrbed" by the market already. This is just profit taking on the part of the participants.

What do you think emini?

And Bri dai, good to see you here still.

Glad to see emini still posting his advice/ opinions. We should all learn to read them and analyze them on our own.

TT

Welcome Back TT bhai,
nice that you are sounding upbeat again. Remember what Edwin Lefevre was for.

Market is long-term bullish, no doubt about it. But it is not the kinda market where you can sleep on it. NOT REALLY so. I shall have a good look at it within couple of weeks. Let us wait and see!

Cash is king for me right now.

Emini ji, yes you have been great-always. Just that it takes few months to understand what you really meant. *smile*. But it is all worthy of it.

Best!

-B

Welcome Back TT bhai,
nice that you are sounding upbeat again. Remember what Edwin Lefevre was for.

Market is long-term bullish, no doubt about it. But it is not the kinda market where you can sleep on it. NOT REALLY so. I shall have a good look at it within couple of weeks. Let us wait and see!

Cash is king for me right now.

Emini ji, yes you have been great-always. Just that it takes few months to understand what you really meant. *smile*. But it is all worthy of it.

Best!

-B

Haha, thanks Bri broda!!!!

I guess bhauju's been feedin you real well! You sound more optimistic than ever! How are the matches going? Chakkas, chaukas???? I wanna hear some century shots among some 10% gains!!!

Keep em coming!!! LET IT FLOW DOLLAS AND BLING!!!!

LET'S GET RICH!!!!!

TT bhai,
so aaj ko market still going south hai na?

ani thanks for the wishes... Cricket has been pathetic. No double digit scores, broken left big toe- hapless shots- hara kiri and suicidal innings. That is what it is so far to sum up my play.

Hey it is nice to have you back TT. Don't bling away now.

Best!
-B

hmm...well, this was just a minor correction if you look at the bigger picture. The housing market's woes still pervades the market. But that saying, I think the market still has a chance of going up.

Lots of short positions so if this market goes up, we'll see it rally up up and up (till it crashes again)

However, if we look at the Spyders (^SPY) the $145 level (today's low) is a very important one. Or in the case of the actual Index, the 1455 level.

Anything below that and we can see some weakness later in the day, hoo boy...We're in for a free fall. Open your hedging parachutes and short them babies I say.

It is hard to say what the market will do so it is very important to come up with rules, test it and follow it. If you had followed the 1% selling day rule, you should have been sitting on the sideline and watching this blood-bath. I am expecting another 8-10% decline on the indices and maybe more on individual stocks.

There is no need to be brave here and buy any stocks now. In the coming weeks/months we will have an opportunity to buy at attractive prices.

i too believe though market is so volatile yet a lot downside is left...... tried hoding stock but seems to be hovering either lower or at the same price i bought..sold one of the great constructionn stock today..... made about $480... bugs and in about 48% cash position so as to grab the oppotunity.

I guess day trading is the most profitable in such period rathing than holding stock i say sell the stock if it goes even more than $ 2 get in as it pulls back.........

May be that'll be better.......I too wish such electronic trading would be available in nepal...i'd have invested there too......... ...

Good Luck and Great Cashing

Shabi

Shabi,
welcome to the board.

I would suggest stay all cash. Cash is king right now. Market is too volatile and you are being too speculative unless you are into shorting.

Best!
-B

Thanks Bricolage,

I want to stay around 75% in cash so that with 25% of my portfolio i wont loose the opportunity if maket takes up trend.. who knows when the market will be stable.... rather then speculating....and i'll have 75% to invest more and/or balance if the market takes good tumble...

Thanks Anyways
Shabi

The bounce that we saw in the last 2 days is more of a techical bounce at 40W MA. This bounce will not make a new high. In the next 2-4 weeks we might see the market try to advance but will not be successful.

For aggresive traders, you can buy DIA here and exit at the first 1% selling day. For more conservative people, you might want to save the money and wait for a selling to 65 WMA.

Wooooooooo

BLOOD IN THE WAL STREET 281 pts down ! It was great i sold and bucked some money yesterday...! Else I'd have regreted.........

Hope Monday will be better if subprime or Bear Stern news stops here. No worry about Fed... he's not gonna do anything

Great Cashing
Shabi

I think the sub-prime issue is for real. Unless the Fed starts cutting rates soon, it will get worse. If you look at the sub-prime lenders, they are declaring bankruptcy. I knew this was coming. One of the guys that I respect has been short the sub-prime lenders since March. He took a little beating for few months but out of 30 stocks that he shorted, 2 declared bankruptcy and the rest are down more than 50%. He is making a killing right now. He manages his own money and it is over 1 M.

For the people that have been following this thread, I suggest you read the books that I mentioned and do not listen to what the pundits say on newspapers or tv. Do not trust anyone including me. Do your own research. Nobody cares more about your money than you. Understand what the market is telling you, not what it should be telling.

I am playing both the long and short side right now but mostly shorts.

I think once we get near 1380 in S&P, the buyers will come out in full force. I will update you guys when I feel the time is right.

We might have seen a minor bottom here. I think the market will attempt to go higher but it is very unlikely that it will make new highs.

For aggresive traders, you can buy SPY here. It is good for few % points. We will see another decline in few weeks, probably in mid September. For conservative investors, you might want to wait till October to get in the market.

Here are some stocks for you guys to do more research. These are trading at a significant discount to its instrinsic value. These are buy and hold for 5-10 years.

Symbol
IDCC
CHCG
BHP
CRDN
IVAC
ATI
TKC
GROW
ESV
MEK
PCU
LRCX
SLB
NE
WDC
IDSA
SII

Dear Emini,

Thanks Emini for your new line of picks. I think you are back on the market now, is that right?


5.25 unch was what I thought too.

Subprime will take care of itself. Freddie and Fannie bailed them out yesterday neways


I figured that most of the value investing stocks that you have prescribed is trading at higher values. Of the picks here are few that I already have on my watchlist.

GROW
CHCG this one is OB.

Also, let me add that following are the stocks trading at lower values with great potential to the upside.

IDCC 26 dollars and change
MEK 13 dollars and change
WDC 20 dollars and change
IDSA 10 dollars or thereabouts.

I sincerely think that Market is not in the right trend. We shall see lots of choppy trading in the days and weeks to come. It would be best to be on the sideline for a while. October is Emini's forecast, I think it is a good month and a plus before we see major calm in the market.

Best!
-B

Dear Emini,

Thanks Emini for your new line of picks. I think you are back on the market now, is that right?


5.25 unch was what I thought too.

Subprime will take care of itself. Freddie and Fannie bailed them out yesterday neways


I figured that most of the value investing stocks that you have prescribed is trading at higher values. Of the picks here are few that I already have on my watchlist.

GROW
CHCG this one is OB.

Also, let me add that following are the stocks trading at lower values with great potential to the upside.

IDCC 26 dollars and change
MEK 13 dollars and change
WDC 20 dollars and change
IDSA 10 dollars or thereabouts.

I sincerely think that Market is not in the right trend. We shall see lots of choppy trading in the days and weeks to come. It would be best to be on the sideline for a while. October is Emini's forecast, I think it is a good month and a plus before we see major calm in the market.

Best!
-B