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Time Travel for Traders

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...it is obvious to us as we look around what stocks are flying now and what would have been excellent areas to look at during the decline and at the first sign of a bottom.

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Jump in the time machine with me and fast forward a few years. Considering we have yet to find way to actually travel through time, this could be a bumpy ride, so you better hold on. We're now looking back on this liquidity crunch sparked by a speculative housing market and stretched consumers and it all looks so obvious. In business schools across America they are teaching young aspiring students about how the unwinding of global liquidity in 2007 created a terrible market decline that was only alleviated by…oh shoot, this time machine is still under construction.

While we don't get to find out exactly how it all played out, it is obvious to us as we look around what stocks are flying now and what would have been excellent areas to look at during the decline and at the first sign of a bottom. We chuckle at those who are still lugging around beaten up financial stocks such as Citigroup (C) and Bank of America (BAC) grasping onto their 'safe dividends' as it is clear they had their time in the sun and its now onto other things.

Apple (AAPL) sure has come a long way delivering not just superb Internet content through a fancy hand held phone, but on-demand movies in addition to the ability to capture hours of video content through the hand held device and upload it to a central server to share amongst friends in an instant. We stop to ask a passerby who is sending last night's frat party video onto a few friends just how much the new Quadruple IPhone costs, as we are sure it must be a small fortune. We are stunned to find out that due to their incredible cost savings production plant located in the Sudan, the Quadruple IPhone only costs $79.95 and is not only owned by just about every college student we see, but is embraced by all as the method in which to communicate, period. There is no doubt in our minds that Apple (AAPL) sure would have been a great place to look once the dust finally settled.

As we make our way across the courtyard into the common area building where just about anyone who's anyone hangs out, we unfortunately have to first walk through a unique security door that in seconds scans our entire body and somehow recognizes just who we are. A green light flashes and we enter the common area. Looking back to review this incredible contraption we see it is made by non-other than General Electric (GE). Upon inquiring from a local we learn that just about every public building in America is using such a device, which has become standard and just a part of safety. We kick ourselves for not having thought about tucking some money away is good 'ole GE when the stock dipped to historic lows on debt concerns.

As we continue our futuristic casual pursuit we figure it may be worth our while to save time and catch up on a little Minyanville, which happens to be the widest read financial site on the Net at the current time, to get a little better feel for what is in play in the markets rather than casually glancing all around and collecting our own data. Furthermore, our clock is ticking on our time machine and we don't want to be stuck here. So we borrow someone's Quadruple iPhone and get busy.

We call up Minyanville and quickly learn that not only did the major averages repair damage from 2007, but are on to new highs. We continue to read further. It looks as if most of the content for the day surrounds alternative energy, which looks as if it has been hot for some time.

Interestingly only a few of the early plays are still around, with stocks like First Solar (FSLR) and Suntech Power (STP) leading the way. Water seems to be a hot topic and a quick glance at the PowerShares Global Water Portfolio (PIO) looks as if this puppy has been trending higher for some time. User-directed content through Google's (GOOG) YouTube seems to be what everyone is watching and are these video blogs really getting sponsorship from legitimate advertising companies to push their products?

As we read a bit further, it looks as if Ford (F) and General Motors (GM) have made a dramatic comeback, each producing a Quasi-Complex Biocarbonate Hybride Personal Autocraft or QCBHPA as they are commonly known, for under $10,000. We see that this morning's "View from Q" artice actually had them as momentum favorites with an eye towards new highs. Wow, who woulda' thought they would have been good buys in 2007 when they looked as if they were going to go out of business.

Finally, we glance at one last article by Minyanville founder Toddo, who is discussing the complex ramifications on the healthcare system due to what sounds like a vast network of affordable clinics that most people are going to rather than heading to "the doctor". We see that traditional healthcare stocks continue to struggle with new and innovative start ups making up serious ground. Toddo is considering a complex option spread but decides to wait it out as the president happens to be giving a speech on health care later that day, so he'll hold off for now.

As we close down the Quadruple IPhone and log off Minyanville.com we see that a few advertisements pop up, powered by Valueclick (VCLK) and amazingly seem to be directed right at us. I mean, how do they know we love Baby Back Ribs and UK Wildcat basketball?

We jump back in our time machine, but first pick up a double shot espresso mocha-frappacino, with a hint of vanilla and dash of cinnamon from Ed's Campus Coffee. We inquire as to what happened to Starbucks (SBUX) and chuckle to learn that when it tried to differentiate into underwear and pretzels, and open another 8 kagillion stores, the company imploded.

Hopped up on caffeine we head back to 2007. We step out and with an eye towards the future to start to develop our action plan on how to deploy our capital. It still feels a bit early, but now with an eye towards the next few years, we sure are ready.


*Quint Tatro nor any staff of Minyanville actually traveled through time. Furthermore, he has no idea if any company mentioned in the above piece will actually still be around in the future and only seeks to get your creative juices flowing, rather than trying to catch a falling safe and play in this market.
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