Friday, August 10, 2007


Surveying the market like a general perched upon a tank overlooking a battlefield, I concur that the worst damage has been done. We have seen the bottom though I cross my fingers as I write this. Senile old men spoke of black Friday and Black Monday and a 1000 point Dow drop while the calculating minds like yours truely decided to stay put and watch the market. While things could quickly unravel on Monday, I feel its safe that we get a decent rally next week. Liquidity flows into the market were very high and at levels not seen since 2005. The Fed continues to inject liquidity and give traders confidence. Certain high profile solid names are selling dirt cheap and small caps considered risky are actually outperforming. While a riverboat gambler with a stomach of steel could try to pick financials which are being handed out for free - GS LEH MS MER C JPM to name a few, its probably better to stick with tech names like CSCO INTC MSFT HPQ EMC TXN . Large cap tech stocks are poised to outperform on the back of fantastic global growth. Gold and Silver continue to look solid here and talks of a rate cut will boost them further. Once Gold breaks $700, 800 could be upon us in a flash. I continue to like chip stocks too like SNDK MU MRVL OVTI . I would also like to add some WYNN and LVS here too.

No comments: