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December 28, 2005
Be wary today's move in Japanese equities, Wed., Dec. 28, 2005, 9:19 AM
Today the Japanese stock market set a fresh multi-year high, up +225 points (+1.41 pct on the day). But the warning has been sounded. This is a speculative run-up that will soon exhaust itself, and reverse. Note the final hour push to send equities higher. It's a temporarily ridiculous situation when an equity market as huge as the Nikkei can rise over +1 pct (i.e., the equivalent of 110 Dow points) in an hour.
Posted by Posted by Bill Cara on December 28, 2005 09:19:09 AM | Category: Japan
OT
Rotation beneficiaries in 2006?
Many managers cannot be 80% cash. As the market rolls over into the New Year and money seeks defense, where will it go?
If yesterday lends a clue then the gold bullion (GLD) and the long bond (TLT) could be winners. But I already hold a heavy exposure there.
Looking for stocks that:
1) were up in 2001 and 2002
2) are out of favor with hot money (Rydex)
3) low end of valuation range (10 years P/E)
4) monthly macd buys
5) monthly rsi oversold
6) rising long term trend
7) beta below .5
8) S&P rating at least A
At the open today I initiated positions in ACV, AVP and CLX. I would be interested if others have ideas for rotation flow beneficiaries.
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December 28, 2005 10:18 AM [link]