We are issuing a change in sentiment and asset allocation alert for all our readers! We have turned decidedly more bullish for two compelling reasons: the strength in the Transport Index and the Intel CC.
1) Strength in the Transport Index:
Transports lead the stock market and the index looks set to penetrate 5,000 and stabilize above that level. Please go back and read this post: http://psychologyofthecall.blogspot.com/2008/04/you-have-old-friend-in-dow-jones_10.html
2) The incredibly bullish Intel Q1 2008 CC.
In a ‘chest-pounding’ conference call, management gave insight on the effect of strong foreign currencies, the continuing and expanding positive emerging market, and the effect of the weak dollar on U.S. Corporate earnings. Please see our Psychology of the Intel Q1 2008 Call interpretation directly below this post.
Although we urge you to continue to look at it as a "market of stocks', and NOT merely a "stock market", we do have a decidedly more bullish bent today, April 16th, than we did yesterday. We recommend covering all short positions, specifically BIDU and FXI. We continue to see problems for JRJC based on their subscription business model directly correlated to a rising Shanghai, and that hasn't been the case lately, so we recommend holding the JRJC short position until after the next CC in May. We recommend selling 20% of the ishares Lehman "TIP" position and buying a small position in Monster WorldWide (MNST) and China Life Insurance Company (LFC); never more than 10% in any one position please, see Commandment #1.
Thank you for you continued support wherever you may be enjoying our blog spot from, sincerely, the Psychology of the Call team.