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July 14, 2006
Tech & telecom "axis of value", Fri., July 14, 2006, 1:50 PM
A risky call from a conservative research department at H&R Block Financial Advisors may ultimately prove ok. But for now I'm holding tight, even if two of the three companies are ones I like. Download H&RB July 13 report on DELL, INTC and MSFT.
The info should be filed away because this Bear market is not going to last forever " even if it's just getting started. What I do like is that these are tech stocks and (i) they have been beaten down unmercifully, which makes them candidates for an early start to the next Bull market, and (ii) two of the three (DELL and INTC) are on my Cara Global Best 100 Companies list.
I also added the info links to IBM, for comparison purposes, although IBM is not in the Cara 100 or a part of the H&R Block Financial Advisors study.
Intel [GICS 45, Dow 30, Cara 100]
(INTC: Yahoo Finance file)
(INTC: StockChart chart)
(INTC: Investertech chart)
(INTC: ADVFN Financial Data)
(INTC: ADVFN Financial Data)
(INTC: Value Line Report Jul. 14: next one is due Oct. 13)
MSFT [GICS 45, Dow 30]
(MSFT: Yahoo Finance file)
(MSFT: StockChart chart)
(MSFT: Investertech chart)
(MSFT: ADVFN Financial Data)
(MSFT: ADVFN Financial Data)
(MSFT: Value Line Report May 26: next one is due Aug. 25)
DELL [GICS 45, Cara 100]
(DELL: Yahoo Finance file)
(DELL: StockChart chart)
(DELL: Investertech chart)
(DELL: ADVFN Financial Data)
(DELL: ADVFN Financial Data)
IBM [GICS 45, Dow 30]
(IBM: Yahoo Finance file)
(IBM: StockChart chart)
(IBM: Investertech chart)
(IBM: ADVFN Financial Data)(IBM: ADVFN Financial Data)
(IBM: Value Line Report Apr. 14: next one is due Jul. 14)
Monthly Data charts (with RSI): DELL,INTC, MSFT and IBM

Weekly Data charts (with RSI): DELL,INTC, MSFT and IBM

Daily Data charts (with RSI): DELL,INTC, MSFT and IBM

Please understand that when the Monthly, Weekly and Daily data Relative Strength Index indicator data is below the 30 level for all of these companies at the same point in time, that will be your absolute best time over probably the next several years to Buy. You may not buy at the exact bottom (who does?); however, over the next several years (i.e., the long-run) you will outperform traders who (i) buy randomly (ii) use Dollar Cost Averaging techniques, and (iii) buy on broker-dealer recommendations/upgrades, and so forth.
The key is to have your long-term stategy in place and to act (not react) to market prices. My strategy involves finding companies where financial structure and performance is, over the long term, peer leading.
By combining these strategies and tactics, I am confident you will (i) perform better than you have been and (ii) your performance will beat that of perhaps 75 pct of professional money managers. The latter are burdened with trading restraints, caused by (i) committees, (ii) industry rules and regulations, and (iii) the law of big numbers.
Whether the Little People realize it or not, they hold an unfair advantage over pro traders (at least those who are separate from the proprietary trading desks of Humungous Bank & Broker who trade against the client with all the cards stacked in their favor, i.e., knowledge of order flow and client records and inclinations, and so forth. Those kinds of traders are really trading illegally but since this is their casino, where these big banks and broker-dealers are rules maker, judge and jury, they operate with impunity. In a world run by the Little People that nonsense would be terminated quickly. Ah, but they only tell us we live in a democracy and enjoy the rights to trade a free market! (lol)).
Posted by Posted by Bill Cara on July 14, 2006 01:50:56 PM | Category: 45 Info Technology
Discourse
I thought those prop traders at the big houses were just really skilled and really smart. I'm shaken by your implication.
Hey, at least give them credit for being really smart, they after all, HAVE THE CANDY JOB.
Posted by: procol
at
July 14, 2006 4:12 PM [link]

Governor Fukui and his colleagues at the Bank of Japan raised the overnight rate between banks today to .25% from nearly zero to "avoid the excesses of the 1980's bubble economy". The bank may keep rates "very low to support growth". The Yen fell on the news.
Posted by: alan
at
July 14, 2006 2:15 PM [link]