From: Eduardo Mirahyes
[mirahyes@comcast.net]
Sent: Sunday, January 27, 2008 4:54
PM
To: mirahyes@comcast.net
Subject: 1-28-08
Monday,
January 28, 2008
Making Money faster than at any time in history.
It’s the market’s unwritten mission is to
make the greatest number of investors wrong. So if most people are now bearish,
the odds are they’re wrong. While others are still in the state of shock, you have
a chance to do something really smart here − “Buy when there’s blood in the
streets”
Increased focus on market negativity in the
media, like propaganda, directly affects subconscious sentiment. So when the
mass media begins repeating, night after night, how bad things are in the
market, it also means we’re close to a major rally. As money managers know, the
more clients call to ask how things are, the greater has been the media effect,
but also the sooner the next big rally can be expected.
The study of charts is nothing more than the
study of history, and history always repeats itself - with a twist. Like the
legendary Barron’s cover proclaiming the death of equities in 1982,
which marked the beginning of the biggest stock market rally in history, a run
of bad press with the identical message now means a major rally is about to get
underway. While this rally won’t outdo the previous run in terms of distance or
time, it should easily exceed its rate of ascent. Meaning you’ll
likely make more money faster than at any other time in history.
In the daily financials index chart below we
see a wave (2)
correction in process, Bear Market in Financials has indeed been underway for
quite a while and the primary trend is down. However, since the market moves 3
steps forward (down), 2 steps back (up), wave (2)
must complete above wave (1) to be a
correction. The Fibonacci multiple that best fits falls in the range of 560-570
for a 34% unleveraged gain! The optimal
buy timing is near 420 on the index, with the RSI just touching
30.
Diag II means the beginning
of a long move up. Diag > means dramatic reversal in progress. Wave (c) = (2)
.
Asset allocation accounts for 80-90% of
portfolio returns. What’s the optimal allocation now you ask? Well Financials
should certainly figure prominently with an expected return of 34% for the
index, a well chosen group of financial stocks should do much better. In
addition, there’s an even better sector we’ve reserved for subscribers. Sorry
we can’t give everything away, why else would anyone want to subscribe? Click
here to learn what to buy.
Regards,
Eduardo Mirahyes
.