Friday, July 31, 2009

Bull Fight

Bullish markets (How can I be sure its really a bullish market and not a random surge...that calls for another post :p)....I like it..

But

What metrics should I care about before I invest

-Company's Quarterly earning compared to its previous quarter (For Ex 2nd quarter vs 1st quarter)
- Company's Quarterly earning compared to the same quarter last year (For Ex 2nd Quarter of 2008 vs 2nd Quarter of 2009)...this is expected to be lousy :p
-5Yr earnings
-10yr earnings
-S&P 500 only
-DOW
-100 day moving average
-200 day moving average
-Wait for the Golden Cross
-Diversity in the company (Ex I can think of GE-Energy-Finance-Consumer Appliances-Defence-Aerospace-Materials-etc )
-Products in the pipeline
-Company's Reputation (Dividends etc)
.....I can go on create more metrics for myself....but if someone knows the answer please share your inputs. Markets is not my strength!! I will never understand the true dynamics that drive the markets.

Fluid Dynamics is so much simpler (Wait a min....turbulent flows are as unpredictable as our markets..huh)

Markets all about Prediction and Anticipation

Heres My Anticipation based Prediction (Based on a truly nonlinear weighted fator equation and trendline extrapolation a.k.a Nikis Technique )

Dow will close this year close to 10,200 (+/- 200)
S&P will close this year close to 1100 (+/-50).....call me optimistic :)

2 comments:

aman said...

@niki- is there a non-existent side to you. You span and leave ur footprints on all fields...engg/music/comedy/photography/acting/now business....just not fair

Unknown said...

@aman- jack of all trades hee hee....but no my bro is into markets and wall street..he is super smart at this so I take tips from him....not really my own knowledge..I confess :p