Smells like asset allocation

Yesterday looked like a large asset allocation kind of trade. It was definitely a programme at work, because there was always an underlying bid. So large elephants may be on the move. The best part of the move was focus on small caps.

If this move has legs it will offer several opportunities. Normally the market moves are like a pop corn bag popping, some pop out soon, some later. So there will be lots of opportunities during the move.

I am finding lots of stocks in my earning, sales, momentum database making a move. The earning season should also bring in fresh opportunities. The overall market climate for last two quarters has been dull , stuck in range. As a result number of good earning plays have been stuck in range inspite of having good earnings. Some have already made moves and there are lots waiting in the wings. So this move should have some leg. There is lot of gas in the tank to fuel this move up.


Unknown said...

Yes, some of my momo holdings are on the move today, namely VSNT. This one has been good to me. Severale others look strong today. I have a delima. I have my acoounts split between 2 brokerages now. I want to use one for trading and one for buy and hold long term type holdings. I want to add large cap names that have growth potential but I don't want to have to watch them every minute of every day for big reversals. I'm thinking stocks like MSFT, T, CSCO, etc. Any ideas or comments are appreciated.

Pradeep Bonde said...

Only time I look at large caps is when they trade in single digits or they have earning/sales momentum.
If you want to look at large cap for long term hold why not health insurers, insurance companies or some health care companies which have predictable earning and steady price increase. IMHO