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Friday, December 14, 2007

CSCO and MSFT after the fact

Notice how CSCO (29.37) and MSFT (35.57) have rallied? On November 28, I had this to say:

Cisco (CSCO 27.49) and Microsoft (MSFT 33.06) were sources of funds for those who needed cash raised and in a hurry. That pressure is now over, and outsized gains can be made in both these numbers, from these levels, right now.
http://aaronandmoses.blogspot.com/2007/11/buy-csco-and-msft.html

The performance of these numbers are important for two reasons. Just as they were sources of funds when the market was going under liquidation; they are stocks to buy when big money wants to deploy capital. Both stocks have such depth, that they can be used for a source of cash, and a place to hide cash. The momentum stocks rally first, and then traders pick up these. So traders are ready to move into this market on a much bigger scale.

So forget about the PPI and CPI. Go out and buy. The stock market looks forward, the Fed looks backward.

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