Post by Savant on Oct 4, 2004 7:56:25 GMT -5
Synchronized Global Stock Surge Powers Markets Published 0800 EDT Monday October 04 2004
A very astute market analyst and Billion Dollar Fund manager posed this idea to us about a month ago: That come October 1, 2004 He would be letting loose on stocks and planned to buy in very big? Did he almost single-handedly set Wall St "On Fire" last Friday and kick off one of the strongest rallies in months? What did he and perhaps many other fund managers know ahead of time? That is the new secret on Wall Street...
But in of itself, this whole rally that caught most pundits completely by surprise, may very well have set an early tone for a truly blistering finish to this year's market and as we ourselves have remarked on several occasions already this year, could also be setting the stage for a strong continuation into 2005, in what we believe will be a year dominated by a technology led boom, the likes of which have not been seen since late 1999 ~ 2000.
We will comment some more on these ideas in due course.
Whilst an explosion of funds flowing into stocks may have been the catalyst for Wall Street's Friday rally, it was really the emerging full force of a global rally that initially got started initially in Asia and then began to reverberate around the World, as Europe picked up the momentum and that was then followed increasingly strongly all throughout the day on Wall Street leading into a very strong close.
The power and momentum of this rally is likely continue at least early into this coming week, before we see any kind of meaningful pullback, but unobserved by many and unreported by most pundits have been the facts that the S&P 600 and Nasdaq Banking Indices both surged to new all time record highs with authority early Friday, setting the stage for the Russell 2000 and S&P MidCap indices and perhaps many other US indices to eventually follow that early lead, sometime fairly soon in some cases and later on in others.
It should also not go unnoticed that other markets around the World are also hitting new all time record highs, in particular Mexico and other Latin Markets and most notably Australia, with the latter setting new records almost every day for the past five weeks.
This all bodes exceedingly well for not only other World markets, but the fact the S&P 600 and Banking Indices are setting new highs along with the Transportation Indices being so strong, really and truly augers exceedingly well for the US markets for the foreseeable future. We plan to go into this in more detail over the next few days as time permits.
We are still long Lipid Sciences Inc LIPD and Ashland Oil ASH with a stop at 55.55. We are also electing to stay long Escalon Medical Corp ESMC which just reported record revenues and net income for fiscal 2004 although it has acted softly the past few days.
Early Friday around 9:50 we highlighted SINT as a buy at 23.50. PETS at 4.78. DHB at 14.40 and SNX at around 18.00. We also like the unfolding structures in Bulldog Technologies Inc BLLD Implant Sciences Corp IMX MWave Inc MWAV and Newtek Biz Svcs NKBS
We think ASTSF represents an interesting play on the recovery in technology as one issue that is a particularly sensitive indicator of this sector that is doing outstandingly well fundamentally: August 2004 net revenues were US$ 54.1 Million an increase of 61% y-o-y.
Photronics Inc PLAB looks poised to break out of a year long downtrend at around $17.50. Dycom Inds Inc DY poised for breakout.
Tradestation Group Inc TRAD also looks poised for a strong breakout in the near to intermediate future and could have a considerable move to the upside given the recent explosive moves experienced in many issues and the overall improving tone on Wall Street.
Caterpillar CAT looks poised to continue higher on the heels of announcing unprecedented demand in all of its divisions. Looks as if CAT could set new all time record highs soon and possibly could be a candidate for $100 plus prices later this year.
We also called Microsoft Corp ahead of its breakout late last week and is now beginning to look like it could make a run for the $30 mark initially and perhaps the low 30's thereafter. MSFT has an elongated saucer basing formation that is beginning to turn up.
Dale Jarrett Racing Update
As we've commented before, DJ has a habit of coming from behind lately and placing exceedingly well in recent races as we predicted some time back that both he and M&M's Elliot Sadler appeared poised to do. DJ was in # 2 pole position ahead of yesterday's EA Sports 500 race for Nascar's Nextel Cup at Talladega Superspeedway, but somehow ended up at the back of the class, where he remained for most of the race before pulling back ahead of most of the pack and managing to slide into an astounding 3rd place finish.
Can Nascars go airborne and still finish the race? Evidently yes. In a Dr. No 007 remake, Elliott Sadler went totally airborne and did a full 360 roll landing right side up and apparently managing a 22nd place finish in a veritably awesome performance by any measure.
Mabye that's why they call 'em built Ford-tough...
Have a Great Week
Trade Well
Savant
A very astute market analyst and Billion Dollar Fund manager posed this idea to us about a month ago: That come October 1, 2004 He would be letting loose on stocks and planned to buy in very big? Did he almost single-handedly set Wall St "On Fire" last Friday and kick off one of the strongest rallies in months? What did he and perhaps many other fund managers know ahead of time? That is the new secret on Wall Street...
But in of itself, this whole rally that caught most pundits completely by surprise, may very well have set an early tone for a truly blistering finish to this year's market and as we ourselves have remarked on several occasions already this year, could also be setting the stage for a strong continuation into 2005, in what we believe will be a year dominated by a technology led boom, the likes of which have not been seen since late 1999 ~ 2000.
We will comment some more on these ideas in due course.
Whilst an explosion of funds flowing into stocks may have been the catalyst for Wall Street's Friday rally, it was really the emerging full force of a global rally that initially got started initially in Asia and then began to reverberate around the World, as Europe picked up the momentum and that was then followed increasingly strongly all throughout the day on Wall Street leading into a very strong close.
The power and momentum of this rally is likely continue at least early into this coming week, before we see any kind of meaningful pullback, but unobserved by many and unreported by most pundits have been the facts that the S&P 600 and Nasdaq Banking Indices both surged to new all time record highs with authority early Friday, setting the stage for the Russell 2000 and S&P MidCap indices and perhaps many other US indices to eventually follow that early lead, sometime fairly soon in some cases and later on in others.
It should also not go unnoticed that other markets around the World are also hitting new all time record highs, in particular Mexico and other Latin Markets and most notably Australia, with the latter setting new records almost every day for the past five weeks.
This all bodes exceedingly well for not only other World markets, but the fact the S&P 600 and Banking Indices are setting new highs along with the Transportation Indices being so strong, really and truly augers exceedingly well for the US markets for the foreseeable future. We plan to go into this in more detail over the next few days as time permits.
We are still long Lipid Sciences Inc LIPD and Ashland Oil ASH with a stop at 55.55. We are also electing to stay long Escalon Medical Corp ESMC which just reported record revenues and net income for fiscal 2004 although it has acted softly the past few days.
Early Friday around 9:50 we highlighted SINT as a buy at 23.50. PETS at 4.78. DHB at 14.40 and SNX at around 18.00. We also like the unfolding structures in Bulldog Technologies Inc BLLD Implant Sciences Corp IMX MWave Inc MWAV and Newtek Biz Svcs NKBS
We think ASTSF represents an interesting play on the recovery in technology as one issue that is a particularly sensitive indicator of this sector that is doing outstandingly well fundamentally: August 2004 net revenues were US$ 54.1 Million an increase of 61% y-o-y.
Photronics Inc PLAB looks poised to break out of a year long downtrend at around $17.50. Dycom Inds Inc DY poised for breakout.
Tradestation Group Inc TRAD also looks poised for a strong breakout in the near to intermediate future and could have a considerable move to the upside given the recent explosive moves experienced in many issues and the overall improving tone on Wall Street.
Caterpillar CAT looks poised to continue higher on the heels of announcing unprecedented demand in all of its divisions. Looks as if CAT could set new all time record highs soon and possibly could be a candidate for $100 plus prices later this year.
We also called Microsoft Corp ahead of its breakout late last week and is now beginning to look like it could make a run for the $30 mark initially and perhaps the low 30's thereafter. MSFT has an elongated saucer basing formation that is beginning to turn up.
Dale Jarrett Racing Update
As we've commented before, DJ has a habit of coming from behind lately and placing exceedingly well in recent races as we predicted some time back that both he and M&M's Elliot Sadler appeared poised to do. DJ was in # 2 pole position ahead of yesterday's EA Sports 500 race for Nascar's Nextel Cup at Talladega Superspeedway, but somehow ended up at the back of the class, where he remained for most of the race before pulling back ahead of most of the pack and managing to slide into an astounding 3rd place finish.
Can Nascars go airborne and still finish the race? Evidently yes. In a Dr. No 007 remake, Elliott Sadler went totally airborne and did a full 360 roll landing right side up and apparently managing a 22nd place finish in a veritably awesome performance by any measure.
Mabye that's why they call 'em built Ford-tough...
Have a Great Week
Trade Well
Savant
