Take a look at the monthly SPY chart below. 2 major corrections have occurred after 2 sets of 5 years bullish trend. From the look of the monthly chart, we are now on the 3rd set of the 5 years bullish move up.
Is there some sort of “unwritten” rule here for the 5 years bullish plan? Well, the pattern is there and it is up to you to interpret it anyway you want. From my perspective, the QE3 serves as the catalyst we are all waiting for to kick this bull market to the next level. I like to see SPY takes out the high of 2007 before the year is over.
Giving this bullish scenario, I’m now 90% invested. I’ve finally bought back DDD and SSYS for my portfolio. I’m now “invested” in the following (sort by descending position size):
GLOG; AMRN; LRAD; SZYM; DDD; ES; SSYS; ATML; DNN; USU; CCJ
Most of these stocks are high beta and the rewards can be very high as well.
GLOG: we need plenty of LNG (liquified natural gas) tankers and GLOG will have brand new tankers build with optimal design for this purpose. How can business not take off when we have abundance of natural gas lying under our ground to share with the rest of the world?
AMRN: it is my opinion that this “fish oil” pill will become a popular prescription for people with high cholesterol condition. And there are plenty of people with this condition giving the diet we are eating now.
LRAD: this has been my long-term equity position for awhile and I believe this technology will eventually become the standard in law enforcement and military use.
SZYM: biotech fuels and foods. This technology speaks for itself when we are heading toward the issue of “over-population”.
DDD & SSYS: Do I need I to say more? 3D printers are the future of production because it is economical to do so.
ES, DNN, USU, CCJ: Now that Japan is rethinking nuclear power, demand will slowly climb back up. There are only so many uranium lying around and they are tough to find and mine.
ATML: This one is The Fly’s pick; so ask him. The chart looks good and the potential upside is huge compare to the risk.
Overall, I believe QE3 has created an economic environment for the stocks I mentioned above to climb higher.
Good luck to all and may all of you prosper regardless of what stocks you own. Like Mr. Partridge said, it is the right side that counts and not the stock. To me, the right stock will give you more bang for the buck!
Remember to follow the price action. I may or may not hold the above positions if price action doesn’t support the bull trend.