The indices are not tracking the true nature of this rally. Over 800 stocks, out of 3,700 tracked, are up more than 10% over the past two weeks. Yet, in a world of its own, the S&P is up merely 3.4% for the month of May. We can easily give it back and book a negative return for the month and the history books will never tell the true tale of this miraculous tape.
There are been 3 primary sectors driving the speculative fervor.
1. Solar
2. Biotech
3. Education
There are gains in other sectors too, but none more pronounced than those three. Are we to chase them up 50% over the past two weeks? While a fresh long might be able to squeeze another 5-10% out of this pistol hot sectors, the risk is decidedly to the downside.
If we are going to continue to run, look for the laggards to catch up. My commodity index is at a fresh 3 year low. Amazing, isn’t it? My social networking stocks have quadrupled, while miners got trounced for another 70%—since the Facebook ipo. I cannot support buying into a sector raining with falling knives; but nothing lasts forever, right? Even education stocks are up 35% and they’re all scams.
A stubborn and headstrong person will begin to accumulate the shares of beaten down commodity companies. I realize they are garbagio now. But today’s garbagio is tomorrow’s treasure.
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Where is The Senator on the topic of these miners? Hath he been wiped out?
Yes, he’s been wiped out.
I knew it.
NO doubt the work of 0bama.
IRS audit too.
Any thought on re-entering USG?
like it
well said Mr Fly..in the spirit of scam “college” COCO fits the bill
Don Senor Fly, do you see potential in DV?
Education stocks are a joke. Just trades.
BPI looks decent.
Dr. Fly, from this foreboding tape many had feared, you weaved quite the tapestry of profits. What set you to act so boldly?
I just stopped worrying.
LNG to Asia
Shell has a bit, ( barely a third) of what is speculated to be bought over the next year
The miners are just showing a glimpse into the future
Adopt the position…
your gov selling your kids up the river, explained:
http://kingworldnews.com/kingworldnews/Broadcast/Entries/2013/5/15_William_Kaye__Part_II.html
what about NG, they own half of the largest potential gold reserve in the world along with ABX and are prime for a takeover at current levels
I see the “Buy High, Sell Higher” crowd is doing a reunion tour. The rolled up suit sleeves and box cell phones are bit much, though.