InvestBaboo

Don't Be Fooled by Inflation

Huh! So Peter Schiff has gone from a future of doom, death and dyspepsia to a future of growth but with hyperinflation? I see that he now grudgingly acknowledges that there is about 2 years of bull market before reality sets in and that reality is probably growth but with hyperinfaltion and more growth in foreign markets than in U.S. markets? Is this what I am reading? So even if through artificial means the U.S. will continue to fool the world and grow and the time of facing the truth may never come or is postponed indefinitely? If that is true then an investment portfolio that comprises of foreign equities, U.S. equities and Gold (as inflation hedge) should perform quite well, right?

Peter Schiff has now become a bull in disguise. I wait for Roubini to do the same. Much like Schiff, Roubini as well has started his shifting is doomsday prediction to one that acknowledges that things are not as bad as they seem and may be getting better!

BRCD - Brocade Communications - Buy!

Near term target = $10.

ATPG - super star in the making?

Someone asked me the short term target for ATPG -- it is $11.

S&P 500: From 370 to 3700 in 2012. What?!

Yes, no one could have predicted that the markets would collapse and the world's largest insurance company would be no more and Bear Stearns and Lehman would be gone and so on and so on. Professor Taleb called this the black swan event and a hedge fund that followed his theory made a killing by making a bet that the market could collapse to this level.

Yes, three years down the road no one will predict that the Dow could be at 14,000 plus and S&P at 2500 plus. A reverse black swan event could very well happen and the popular opinion today under any circumstances does not see anything like this happening.

And that may be exactly why it will happen. As part of an overall investment strategy it does not cost much to make a bet on a black swan event like this occuring in the reverse.

Building Allegiant Travel Position on the Way Down

I don't know what exactly you are trying to say in this article but if you are long on ALGT -- I warned you and your followers in your last article on ALGT that ALGT charts were highly suspect and there was potential to the downside and I wouldn't mess with it. Well, I was right and at this point in time ALGT is wounded on the Daily charts and a suspect on weekly charts. I fully agree with you ALGT has great potential but sometimes for reasons unknown a great stock can stgay in the gutter. It is possible it may recover and start the run tomorrow or just as likely drop another 5 points. A dangerously volatile equity that I was incredibly lucky to make a few bucks last time around but I hesiatate now to play with it anymore.

So you are now long on an airline stock and a shipping stock (as per another one of your articles) yet you write and moan about the great circus the market has become. You surely are a complicated person to understand!

Is Gold Breaking Out? Will That Bring Wedding Bells to Junior Miners?

I published in my Blog the day Gold broke out to the upside. My specific recommendations are EGO, GDX and ABX. NEM looks good and look sready to breakout as well. Almost any Gold miner is a BUY now on the charts so you couldn't really go wrong buying just about any of them. You ask me why Gold is going up - I don't know - when it stops, I don't know, but get on the train and enjoy the ride!

Preparing for the coming Black Swan event - The Slumdog Millionaire Portfolio

Hi User 117883:

I use several charting programs to make my decisions. Besides looking at the standard indicators (such as the ones you mention - unfortunately many of them are lagging indicators as opposed to being leading indicators) I also use professional charting tools from a half dozen companies. I look for momentum, volume driven momentum, and action above and below established moving averages. The strength of the action above a moving average is a very important indicator. Then I take all the scores from the different charting programs and it blows a certain threshold then the stock is a buy in my books.

Slumdog Millionaire Portfolio registers a record 12% one day gain!

As luck would have it one of our super select Slumdogs, BRCD - Brocade Communications, got a ringing endorsement on Mad Money by Cramer. I just love this stock and I think it has got more than one play. It was sent to the slums in 2008 by the brutality of the market and has been making a great recovery torwards being a millionaire on its own efforts. Then the big blue knight (IBM) comes suddenly out of the blue and does a top notch deal with BRCD to sell their equipment against Cisco in their customer accounts. I wonder if an acquisition by big blue is next on the list! The charts look just superb both on Daily and Weekly. This slumdog looks set to regain his millions!

Yes, Gold is a Buy now!

Add ABX (Barrick Gold) to the list. I was quite surprised to see so many Gold stocks pop Buy signals so suddenly and across the board. What is going on? One plausible theory is that the market now really believes in recovery and that recovery may be accompanied by inflation! We all know Gold is #1 hedge against inflation.

Don't Be Fooled, We've Been Here Before

You are beginning to sound like Rev Jim Jones! Scary!

2 Signs That Gold Fundamentals Are Improving

Gold is showing Buy signals on charts. I recommend GDX, EGO and ABX to begin with.

Visa, Mastercard and the Debit Card Revolution

Let's get to the point here. Debit cards, spending, cashless society, lack thereof, all is fine but how do I make money? Tell me where Visa's stock is going? I published my comment a while back in response to one of TraderMark's article (I believe the title was 'Visa is not everywhere I want to be!") that Visa's charts were pointing a run up and I gave it a near term target of mid 60's which it met right after the earnings announcement and exceeded the target today going into the late 60's. The bearish bias of his article did not bother me and I don't think I even read it because the bearish bias simply did not align with Visa's charts. I mean, why take the time to read and understand a bias if it simply is not true?

Grand standing aside this begs the question -- why even look at what a company does if the charts can tell you what to do with its equity? What is more important to you? Making money of an equity or jerking off late in the night writing long notes deeply analyzing the ins and outs and idiosyncracies of a business? I don't know what a majority of the companies do in my Slumdog Millionaire portfolio but all I can tell you is that it was up 12% today and has been up over 80% since I created it in March of this year. I published it about 3 weeks back in my InstaBlog and it may amuse you to take a look at it.

Why Your Portfolio Could See Another 12% in 2009

The markets roared today and this rally appears unstoppable. The Slumdog Millionaire portfolio scored an astounding ONE DAY GAIN OF 12%. This is on top of the 6% plus gain it achieved last week which was a relatively flat week for the markets. The portfolio is listed in my InstaBlog.

Please note that the mutual funds are hungry now and they will come looking for those unfairly beaten down names which were once mega stocks but were reduced to slumdogs by the crash of 2008. If even a small section of equities in this portfolio see their glory day highs you stand to make an incredible killing. Some slumdogs have nearly doubled since I added them to the portfolio but I believe they have a long way to go. They have the power to triple or even quadruple within the next year if my theory of a reverse black swan event holds true. So far this theory is unfolding just the way I envisioned it!

Why Your Portfolio Could See Another 12% in 2009

Digging deep here are we not? :-) Let us see where this week's action puts us.

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Baboo: did you happen to notice that the uptick on Friday which put the weekly close above the resistance line? It only occurred in the last 5 minutes, and on miniscule volume. A pretty shaky foundation, as "great signs" go. I'd proceed with caution.


On May 03 02:41 PM InvestBaboo wrote:

> By the way to all chartists -- S&P registered a Buy signal on
> the weekly charts for the first time in this bull rally just this
> past week. NASDAQ celebrated its 6th weekly confirmation. Great signs
> that portend a continuing bull run for the markets. Where it stops
> I don't know but this author makes a credible case that it is 975
> that we need to be worried about and he is probably right

U.S. Economy: 'Less Bad' Doesn't Mean 'Getting Better'

Go ahead and disagree with me (the bull) but empty words aside here is what I have standing on my side.

CHARTS! CHARTS! CHARTS!

NASDAQ celebrated its 6th consecutive weekly buy on the charts. Go back and look when is the last time this happened and with each week a reversal becomes less and less likely.

S&P which was a buy on daily charts for several days accomplished its first weekly buy just this past week. Dow is about to tip over and it too will follow.

Leading stocks in leading industries are all Buys on daily and now many on weekly charts.

The bend has not arrived to the trend, my friends. It would be wiser for you to get on the train and enjoy the ride. Please trust that I will tell you when I spot the bend so that we can all get off the train gracefully and allow the late riders (AKA bagholdres) to take our positions.