Up and up she goes!
As I noted in yesterday's report, we're very likely in the late stages of a bubble rally but you could have said that at any point in 1999, when the Nasdaq rose from 1,750 to 3,750 and you would have been right in early 2000, when it kept going all the way to 4,816 because it went far below that over the next two years but you also would have missed a hell of an opportunity on the way up – as long as you knew when to take a profit…
I misseed a lot of the rally in 1999 as I thought a double at 3,000 was a bit much and I sat there with my arms crossed, cluck-clucking at all the fools who rushed in for the next 1,800 points but a lot of those guys got very, very rich chasing those crazy stocks and some of them got out ahead of the crash but my takeaway from that was to just be patient, make a bit of money on the way up but I find I'm far more comfortable using that money at the bottom to pick up value stocks for the long-term.
On the whole, I'd rather own a stock at a great price for 10 years and make constant streams of money than jump in on a momentum stock and try to time my exit. It's a difference in style and it's important to know what kind of trader you are – especially in a rapidly moving market like this one. While you can make some very nice money buying AMZN for $1,932 and selling it for $2,000 we STILL have a lot of the trade ideas that we played since the 2009 crash like:
AIG at .40, BAC at $4, CY at $5, F at $1.68, FAS at $4.76, GE at $8, GOOG at $350, HCBK at $9.50, HOV at .80, IP at $5.62, IWM at $37, JPM at $16.80, UNH at $20, VNO at $30, WFC at $12, X at $10 and dozens of others that were detailed in that week's wrap-up