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.

For some reasons, I won't be posting here any more.

Admin: can you please delete all my postings and de-active my user id please. I apologize for the inconvinience because there were many participants in this particular thread.

Good Luck to you all. LONG LIVE NEPAL!!!!!

Wow,

That is a shock!!!

I'm not gonna ask why but this is sad! I wonder what the problem could have been.

Anyways, I might get more active now now that the market's been slaughtered. Look for stocks that are screaming "short interest" towards the end of the month. i may post a scanning mechansm that will help you see such stocks.

Next year I'm taking some courses in time series analysis, regression analysis and much more. those of you familiar with engineering courses must have done something of noise reduction, etc. I might end up doing those as well.

I'll try and get a layman's version of quantitative trading to this thread as I advance in my academics.

Still looking for a job. I hope Goldman calls. hahaha



Till then, lets hope we keep this thread alive and running. Can't go back now. this is one of the most heavily posted threads.

emini: if you really are leaving, why don;t we allow your older posts to be kep as is? they contain valuable information for many newbies.

It's upto you.

good luck with your future endeavours.

TT

What a quirk of fate!

Emini bids bye while at the same time TT walks in with lots of promises. *smile*.

Good luck to both of ya!...

TT bhai, I look forward to read you-understand you-learn from you.

Emini ji, I bet you are going to do exceedingly well with all the patience and knowledge you have.

Maybe one day we meet up!

Best!
-B

ps market is going south for the first hour or so today.

funny stuff:

The Dow dropped more than one would have expected today. What we're seeing is extremely rash behaviour on part of the ears and bulls turned bears.

Having said that we cannot just wait to sell. If you bought puts like me (and I was crazy over puts), good for you. While emini preferred active watch over your stocks and using stop losses effecively, I add use the puts as important, especially if you have a short term time horizon i.e. up to a couple months.

Do not write puts, but buy them . Same with calls, don't write them- buy them. If you do not know what derivatives are, go online and search for them. Takes some time but learn on your own. they can be very effective risk management tools, and in times like these, if you're looking at high beta stocks, extremely profitable.

All in all, most broad market ETFs- QQQQ, SPY and the IWM hve l broken past their support levels and will very probably test more support levels. Look out for a test of the 100 week moving average on the IWM at $74 and the $45 level for the QQQQ. For the SPY, look out for the $138 range. Below those levels, it'll be buyer's heaven once things shape up in the US economy.

There are agoing to be a lot of lawsuits that will follow. Even Wall Street's king Goldman Sachs is being targeted. So I expect the declne to last quite some time, well into fall if things are really that bad. Large institutions like Bear Sterns have had some of their hedge funds closed. The situation is rather grave.

The short interest on the SPY has jumped almost a 100%. That's good if you are out of the markets. Let it fall. Let the bad blood as emini pointed out flow away.

For now, stay back and use proper risk management, don't be too greedy and ENJOY THE SUMMER!!!

Here's some more interesting ones.

INTC. this baby's going down. I had a while ago mentioned a target price of about 25. it reached 24.8 just before rates topped. If you sold then, you were good.

If you want. You can buy puts accordingly. do not short. although those puts will be expensive, they could reap huge rewards.

The support(s) for the above mentioned market averages are holding up good. It is only a big correction we're seeing.

I hope a lot of you have high beta stocks in your portfolio. Cuz when the markets go up, those babies will rally like they've seen a ghost. But then again, you have to be on the lookout. for at least a month, things may or may not look good.

So it is guilty till proven innocent.

Forget QQQQ its QID TIME.

My last post.........It looks like the correction is over. Buy QQQQ, DIA, SPY or IWM. Stop will be close below today's low. We'll see an attempt to rally and maybe re-test today's price in a month or so.

Duke: You're buying QID here? Looks like you are 3 weeks late for the party. I hope you don't trade currencies that way.

Good luck. Follow the rules and make money.

Hey guys,
I don't know much about stock and all those things, just commom sense. My question here is I'm in the process of getting a condo in the West Cost. But the recent news about the effect on the Mortgage makes me uncomfortable, will I be better off to wait. I've 2 more months, or else I'll have to wait one more year.
And suggestion will be apprecaited.

Here's the thing Bob Marley (nice name by the way), the recent mortgage market has left a lot of people shaken but people with good credit need not worry much.

Interest rates: The federal reserve of the US and other central banks around the world are feeling that there is inflationary pressure. Prices are going up. So they are "influencing" interest rates so that they go up and counteract the inflation.

Now if you have been good on paying your credit card debt in time and other debts and you have a good credit history, you will get the competitie mortgage that banks offer. I would "shop around" different mortgage lenders and bargain a lot.

goto http://finance.yahoo.com to get an Idea of the mortgage rates offered throughout US. It's at the bottom right hand corner as you scroll down.

Now, as for whtehr or not to buy a condo, do it. You'll have to be gutsy. Interest rates will rise. Go bargain and fix your rate for a 5 year term, RIGHT AWAY. No place like your own home Bob Marley!

Like i said, if you have a good credit history, you'll get the best rate in the market.

Time Ji
Thanks for your suggestion. I look at the news and hear, FROECLOSURE. Local news says mortgage is hard to give and take. Eventhough I have a good credit history, my common sense says I'll be better off to wait for a while. You have not point out why should I get the condo now, and not wait? That will be the important point for me to know, rest put aside.

Well, thats exactly what i pointed out. Inflation is happening now and it will last for a while. So the rates will go up for some time to come. Would you pay a higher interest rate and pay more mortgage in the future or will you fix the mortgage rate now for a 5 year term, (after which it is reviewable)?

I AM NOT A MORTGAGE BROKER, so I have no loyalty to banks. But I do believe that this subprime mortgage crisis is just noise. focus on the signal. The signal is that it's not as bad as it seems, once the dust settles, everything will look clear.

Foreclosures are for suckers who cant pay back. Nepalis don't realy fall into that category. We work hard and make sure debt is not an issue.

So head down to your mortgage advisor and fix that rate for the next 5 years. If in 5 years, rates are still up, well, tney'll be up for everyone, not just you. If they're down by then, well, you can simply add another 5 year term with a lowr rate.

thats why you should buy NOW and not WAIT. The longer you wait to anticipate better terms, the more you'll suffer.

Nariwal phutaunus Bob Marley ji, ghar ko angan ma. Ghar bhaepachi man ko shanti huncha. nothing's more important than that.

keep this thread live................

yea,
tell me why I should not buy a condo right now. The prices are down, but what about mortgage? Why they say it's bad for homebuyer, what exactly it means?

I think fluctuation in real estate price is very low. So it is always good to buy if you do not invest your money in stock market for higher return. Wait for next FED meeting that could reduce interest rate.

can one put order of sell stock and buy ( thinking that there will be balance after sell) simultaneously????

Not sure what u mean aman..Could you clarify it buddy?

And I think what the fed did echoed my sentiments expressed above.

now IS the right time to buy a home.

It's already 50 basis points below...

Oooo

I think I know what aman means...

No Aman, unless you're a market maker, you cannot have simultaneous buy and sell orders at the same time. That could cause the SEC to take legal action against you as it is against regulation to have simultaneous buy and sell order for the same security.

What yu are effectively doing is making market and that is a previlege given only to market makers.

This thread needs some life.

pump..pump....pump some life into it!!!

Is this a time for pullback...????.