talk about bullish

Discussion in 'Trading' started by S2007S, Jan 12, 2007.

  1. S2007S


    Predicting a 20-25% run up in the nasdaq for 2007,

    That would put the nasdaq at 2900-3000 by the end of 2007.
    We Are Off To A Great Start For 2007
    Friday January 12, 2:41 pm ET
    By Tim Truebenbach

    This market is acting phenomenal! We may very well be seeing the beginnings of a very big rally unfolding. The NASDAQ has taken the lead role among the indices, which we have been looking for since late-2004.

    One thing we are also seeing now, which we have not seen yet are a quality, diverse group of leading growth stocks emerging from very sound patterns. Additionally, many of these stocks are in early stages of moves versus being extended in their runs, such as the homebuilders were back in late-2004.

    Large-cap stocks like Google (NASDAQ:GOOG - News) provide insight to how a stock can rally, pull back in price and resume a rally. This company sports stellar fundamentals as well as displays accumulation as it re-claimed its 50-day moving average in early-January, 2007.

    Mid-cap stocks such as (NASDAQ:BIDU - News) exemplify the quality names that can be found in this space of the market. This company, for example has triple-digit earnings and sales growth that is usually only prevalent in small-cap names.

    Finally, small-cap stocks may very well benefit the most to this type of rally. Since the early 1900's, earnings have been proven to be the largest factor in a stock's price. Small-cap names such as Avatar Holdings (NASDAQ:AVTR - News) grow earnings in excess of 100%, year over year. These names tend to be more volatile, but in a solid market uptrend it is just more rational and easier to move a stock with a small market cap and huge earnings growth.

    In addition to these several examples of large-, mid- and small-cap names; there are plenty of other leading stocks that hail from a broad range of industries such as medical, apparel, telecom, internet, gaming, computers and electronics. The depth of this rally is one of the key attributes that plays into my belief that it can be quite large and prolonged.

    Let me pause for a second and define a huge rally in the NASDAQ it would amount to a gain of 20-25% in 2007. Leading stocks could easily do 4 times this! We will continue to follow our rules, but this is what seems to be unfolding just so you are seeing and understanding the same things that I am in order to form your own opinion and strategy.

    I realize this column is coming across extremely bullish. This is no doubt the type of market where I make most of my money and I will also point out that by following price, volume and the action behind leading stocks I can also become quite bearish. From the top of the market in 2000 until early-2003 I will remind readers that I was about as bearish as anyone. We won't go into historical precedence of 1929 to 1937 in this article, but based on the action we are currently seeing and the historical similarities of the Dow from 1929 to 1937 and the NASDAQ from 2000 through present are almost a mirror of one another.

    Enjoy your investing and don't hesitate to visit the True Capital web site for a monthly update to our free newsletter and consistent market updates.
  2. It will be 1999-2000 again except only 10 years later