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Equity curve for Trading System no2.

382% Model portfolio performance for 2005!


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Stock Pick: Banco Bradesco (BBD)
at 2005-12-04 19:53:36

I had some cash to use today and bought Brazilian bank Banco Bradesco (NYSE: BBD). I wanted to increase my international stock exposure. The only other ADR that I own is America Movil (AMX). Banco Bradesco is benefiting from a growing Latin American economy and increased foreign investment. With a growing economy there is great demand for cars in Brazil and they need loans. Banco Bradesco will continue to benefit from loan growth. I was considering buying Unibanco (UBB) but I feel (BBD) has better momentum. I still believe both are good investments.

With this purchase my portfolio is 10% ADR/International stocks.

America Movil (NYSE: AMX) Cup and Handle
at 2005-12-04 19:53:36


I am not a chartist but this chart of America Movil (AMX) has a nice "Cup and Handle." For those who are chart illiterate this is generally considered a bullish chart for the underlying stock. Please post a comment if you agree or disagree.

Note: I am long (AMX)


Bullish or Bullsh*t Stock Market Chart
at 2005-12-04 19:53:36

You got to love what I call the "super bulls." These are people that are bullish on the stock market the vast majority of the time. I am not ripping on "super bulls" or "super bears." I think a healthy stock market needs both. I came across Harry S. Dent's website, which has a preview version of his newsletter. I pulled this chart from the newsletter.
Mr. Dent will be right eventually. The Dow cannot trade between 10,000 and 11,000 for the rest of eternity. It might help to put some good companies in the Dow. Or at least take out the "52 Week Low" stocks (Alcoa, GM, Merck, SB



Stock Pick: Intuitive Surgical (ISRG)
at 2005-12-04 19:53:36
First off, I would like to say that this stock at its 52 week high. ISRG is up a lot but I still think it goes higher. I listened to the latest conference call and I believe ISRG will sell at least 30 of the da Vinci Surgical Systems in Q4. Wall Street estimates of $0.49 are too low for Q4. I believe ISRG will earn between $0.50-$0.60 in Q4. The bear case for ISRG is that they will be taxed between 30-40% in 2006 and that will hurt future earnings. ISRG is still enjoying a 7% tax rate because of previous losses. Also ISRG has met sales goals in 2005 so further sales in 2005 will credit more bonuses to employees and lower earnings per system sold I still think there is a lot of room to grow in ISRG's patented technology.

If you are serious about ISRG then I think you should visit their investor relations home page.
There is a Shortened Trading Session
at 2005-12-04 19:53:36

I hope everybody had a happy Thanksgiving. Remember that the stock market closes at noon on Friday. The NYMEX, Chicago Board of Trade, and the Merc are all closed. I suspect very light volume. I don't plan on making any trades. I would like to ask if anybody recommends any trading software or software for trading option contracts.


 

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