Amazon deals

Thursday, July 1, 2010

Announcing the re-opening of subscriptions to my Monthly Investment Newsletter – and a Sensex update

There have been several reader queries about when subscriptions to my Monthly Investment Newsletter will re-open. Some of you who had missed the deadline in Jan ‘10 have also written to me recently.

I am pleased to announce the re-opening of newsletter subscriptions for a 3 weeks period from July 1-21, 2010. Like in Jan ‘10, only a limited number of subscriptions will be on offer – strictly on a first-come first-served basis.

If you are interested in subscribing, send an email to: mobugobu@yahoo.com at the earliest for details.

These past six months have been an interesting experience for me – and a profitable one for those subscribers who bought stocks at the recommended prices. It is easy for me to pick stocks for my blog posts when there is no pressure to perform.

It is even easier when the stock market is in a bull phase – as anything you touch soars up. The real challenge in stock selection occurs when the market is in a prolonged sideways consolidation.

Those who have followed my stock chart pattern discussions know by now what kind of stocks I like, and what type of stocks I avoid. The guiding principle has been to choose well-managed, financially sound companies that give steady returns and protect the downside.

Non-subscribers may be interested to know how the recommended stocks have fared. Without revealing the names of the stocks (it won’t be fair to my subscribers to do so), here is a brief results table with price on recommended date, subsequent high and low prices, and gains (absolute and annualised) as on Jun 30, ‘10:

Stock Date Price High Low Close Gain Ann.
A Jan 31 206 274 195 250 21% 51%
B Jan 31 131 222 120 219 67% 161%
C Feb 28 78 87 70 76 - 2.5% - 7.7%
D Mar 31 178 254 171 220 23.5% 94%
E Apr 30 82 116 75 91 11% 66%
F May 31 171 202 148 194 13% 161%

This is not merely an effort to blow my own horn. All six stocks are small caps picked for long-term of 2 to 3 years. The fact that they are showing decent short-term gains (except one) – even after falling from their recent highs - is a testimony to their underlying strength.

What is more important is that these stocks were not ‘cheap’ and had already run up quite a lot when they were recommended. The lesson is that even near 52 week highs of the Sensex, there are stocks available that can provide good investment gains.

To cut a long ‘commercial break’ short, if you need help in selecting good stocks in uncertain times, all you need to do is subscribe to my Monthly Investment newsletter. Send me an email (at mobugobu@yahoo.com) soon – subscriptions will close on July 21, 2010.

----------------------------------------------------------------------------------------

A Sensex Update

Sensex_Jul0110

The bull case: All three EMAs are moving up with the Sensex getting support from the 20 day EMA. Sensex hasn’t dropped much while Asian, European and US indices are tanking.

The bear case: Volumes are getting lower at peaks since the Jan ‘10 high. Of late, down day volumes are exceeding up day volumes in spite of FII buying.

RSI is still above the 50% level but falling fast. The slow stochastic is below the 50% level and the %K has given a bearish cross below the %D.

FII action holds the key now. Any further weakening of indices in Europe and USA may lead to a pull out by FIIs.

No comments: