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InvestBaboo

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  • Dollar Chart Tells a Much Different Story than Pundits Do [View article]
    Correctamundo!

    Here is what I did right but what I also didn't do that I should have done.

    A couple of weeks back for some strange reason out of the blue Gold charts started yelling buy! buy! buy! So I started checking various Gold miners and every one of them suddenly had developed technial metrics that yelled strong buy! Since I am a chart follower I did an immediate reallocation of my portfolio and gave a decent % to Gold miner stocks. So that you know I am not making this up I also published this in my blog. I was rather surprised by this because the equity rally appeared intact and inflation wasin check. Equity market continued deterriorating during the week and then comes this S&P wallop out of the blue and Gold made yet another strong leap upwards. The markets saw this coming a couple of weeks back and this also warns of something serious possibly developing like a global monetary crisis. Whether it does or not you can't go wrong investing in Gold because Gold acts as a great hedge againt any possible monetary crisis.
    May 22 09:23 PM | 3 Likes Like |Link to Comment
  • As the U.K. Goes, So Goes the U.S.? [View article]
    Markets are amazing in how they see the future and so often you miss it if you are not following the charts. Just a couple of weeks back I noticed strong buy signals appearing on Gold and Gold miner charts and I was baffled by this. The stock market rally was continuing, inflation appeared to be in check, so what gives? Since I follow charts and you can be bullish or bearish on a given asset class for any number of reasons I switched a % of my portfolio to Gold and have been handsomely rewarded for this action. So when the S&P debt rating issue surfaced and Gold took yet another strong leap upwards I was able to put it all together. The market is slowly losing its faith in paper money and thus the run-up in Gold prices. Finally the Gold bulls may have their day and if this uncontrolled spending by world governments and massive issuance of paper money continue their trend (which currently appears irreversible) then Gold might very well march towards the very aggressive thousands of dollars price targets the bulls have set on Gold.

    So "net net" what does the S&P actions should mean to you? It means BUY GOLD! Do it as soon as you can. There is no hedge like Gold against a possible monetary crisis that may occur in the future.
    May 22 09:08 PM | 2 Likes Like |Link to Comment
  • Why Gold Enthusiasm Is 'Cool' Again [View article]
    All this theorization is good but I hasten to point out that Gold has strong buy signals and technical metrics on both daily and weekly charts. Every single listed Gold miner I could find is a buy on the charts. So I shut my eyes and loaded up on a bunch of Gold miners a couple of weeks back, posted as such on my blog urging readers to buy, and was handsomely rewarded for trusting the charts. During the same time the major indices retrenched a bit so what should have been a loss week actually became a profitable week thanks to the investment in Gold. What this points out is that Gold is a great hedge against MARKET UNCERTAINTY. Infllation while not a threat now is coming down the road. The massive decline in supply side investments in commodities with the current economic downturn will come to haunt us a few months down the road in terms of scarcity and higher prices. So there are plenty of reasons to buy Gold now.
    May 22 08:53 PM | 5 Likes Like |Link to Comment
  • The Bears' Skepticism Is Getting Old [View article]
    This is very good. Almost all the comments here are bearish and many extremely bearish in nature. By definition such overabundance of bearish sentiment in the early stages of a bull market is good because it helps sustain the rally and take the market to new heights.

    As I have always said everytime I have tried to judge the direction of the market based on my own anaysis I have been wrong. I just follow the trend. We have had a negative week and yet the charts don't say the trend has ended. If the trend does end I will jump ship and let my bearish emotions come out in full swing and have a good cry with all the bears. Meanwhile, I will finger those crispy currency notes I have in my pocket thanks to the recent bull market which I benefited from by just following the trend rather than sitting on the sidelines like most bears shaking their heads in disbelief. Why people just don't follow the market rather than sitting on the sidelines and trying to second-guess is beyond me!
    May 17 12:28 PM | 2 Likes Like |Link to Comment
  • Profit Taking or Something More? [View article]
    You hit the nail right on the head! But for the secondaries the markets would still be up this past week. When the oversupply ceases the bulls will pick up where they left off and drive the markets higher.
    May 17 02:32 AM | Likes Like |Link to Comment
  • Opening up a big position in Gold equities as a hedge against market uncertainty and serious inflation [View instapost]
    A quick comment on why I don't own GLD - the ETF that is the best alternative to owning physical Gold. I would rather own solid Gold than ETF Gold. I have also seen that when GLD appreciates the Gold miner stocks do even better putting in a significantly better performance than GLD.
    May 16 02:47 PM | Likes Like |Link to Comment
  • Where the Big Money Is Betting Big [View article]
    All I can say is this. The movement of money into Gold has begun. Charts show the beginning of a new bull market in Gold. How long it will last I don't know but Gold and almost every Gold miner is a buy on the charts.
    May 16 01:59 PM | 6 Likes Like |Link to Comment
  • Gold Miners Poised to Reap Profits [View article]
    I have said for a long time I will stand on the sidelines and wait until Gold shows a buy signal before getting in the action. Last week it did exactly that -- across the board almost every Gold miner started showing positive metrics on the charts. I recommend GDX, ABX, EGO and as a speculative low priced play, NG (Novagold Resources).
    May 12 09:27 AM | 2 Likes Like |Link to Comment
  • My Sirius Gamble [View article]
    Ok, I am a chart reader and here is my take. What is interesting is there is a Bull-Bear struggle on the daily charts that makes it alternate between Buy and Sell while weekly charts have given a thumbs up as many as 8 weeks ago! I would be a buyer at this point in time with a stop loss at 24 cents. The reason I even have a stop loss is that if it breaks below 24 cents something horrible has happened or going to happen and the charts say the equity is toast (heading to zero which we know won't likely happen with SIRI).
    May 12 09:04 AM | 6 Likes Like |Link to Comment
  • Is It Time to Sell in May and Come Back Another Day? [View article]
    You say:
    ********
    For the first time in many weeks one of our indicators has delivered a sell signal. Our market leadership model needle is pointed at sell. We also noticed the breakdown on the charts as the NASDAQ crossed under the S&P 500 in terms of performance. The NASDAQ has led the way during this rally up, pay close attention to the lead dog. If it stops pulling the sled, eventually the sled stops moving in that direction.
    ********
    NASDAQ has had 8 weeks of uptrend in the chart and three days of underperformance is enough fo you to declare an end to the rally. Some chartist you are! Today techs showed exceptional strength. If they keep it up tomorrow then will you republish the article saying the needle has just moved to a Buy? Maybe your chart buy/sell meter is broken in like those old cars from the 50's.
    May 11 08:44 PM | 1 Like Like |Link to Comment
  • Is George Soros a Contrary Indicator? [View article]
    It amazes me -- you go listen to some guy Soros or Boros or whoever when the charts have told you 100% accurately when a trend began and when it will end. The charts recognized on Macrh 18 the beginning of a trend and the chart reading as of today (May 11th) does not yet show a end to this trend. While you are speculating whether Soros, his cousin Boros, or Buffett is correct I made double digit gains by just listening to Mr. Charts.
    May 11 08:38 PM | Likes Like |Link to Comment
  • Hey Microsoft, Use Debt Sale for M&A [View article]
    Great article! The author is correct. Investors have discounted Microsoft as a no-growth company but with solid cashflow for the next dozen years. At best it will be a flat stock to own for the next dozen years. However, if Microsoft unveils a strategy where it will use a bunch of acquisitions to better position itself against Google, Apple, Social networking space and the Internet applications space -- well, then it is a contender and now growth stock investors will step in.
    May 11 08:27 PM | 2 Likes Like |Link to Comment
  • If and when to bail from the market [View instapost]
    Vincent:

    Yes, one good way is top look at the resistance levels and then come up with a spilt sell strategy (for ex. 50% at first and rest at second resistance) or you can keep upping the stop loss and when you feel that you have earned enough profits from the stock you can up the stop loss to the first support level. This later way you are maximizing whatever profit run the stock has to offer.
    May 11 05:33 PM | Likes Like |Link to Comment
  • Casino Stocks Could Be a Long Term Jackpot [View article]
    Agree with everything you say except the following:

    "Right now, I think that the current rally will end and we'll have another leg down (or two) before moving to a new bull market. Casino stocks will probably dip again before rallying too. Timing in this investment is important."

    I would suggest that you take a position now and be prepared to liquidate them (set a stop loss) and measue the market to see if the current rally can continue without a serious or significant pullback which is entirely possible. If that is true you are getting quite a bargain at the current prices.
    May 10 11:48 PM | Likes Like |Link to Comment
  • A Bull Market That Few Are Buying [View article]
    The title "A bull market that few are buying" is correct but with an entirely different line of reasoning than this author.

    There is a vast amount of cash waiting on the sidelines that is yet to buy into this market that will provide rocket power boost once it starts coming in. It is a matter of when this money will start flowing in and not if the money will start flowing. The money that the author and his friends have will also come pouring in once they realize that you can't fight the trend but given just how much reservation the author has about this I am affraid he may be the last one to get on the train and left as the bagholder.

    What I am saying is that facts can be looked at with colored glasses. I could get on either side of the fence and make extremely bullish or extremely bearish arguments. I have been wrong in the past when I have trusted my opinions and invested contrary to the the trend in the market. One day I woke up and realized that fighting the trend was a mistake and I will always invest with the trend and from that deduce either a bullish or bearsih bias. This is because the markets are always right and anyone who argues against it is wrong!

    As I keep saying the trend is your friend till the bend at the end and there ain't no bend to see at the present my friends. Articles like this are healthy in the sense that some doze of bearishness is good for the bull market but I urge the readers of SeekingAlpha not to miss the bull market and once-in-a-lifetime wealth creation opportunity that the market has presented us with.
    May 10 11:51 AM | 17 Likes Like |Link to Comment
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