Mid-May Report

Macro-US equities
Major indices are indicating a pause. With members of the FOMC like Hilsenrath and Fisher mentioning the tapering of quantitative easing, there is just an uneasiness in this environment. However, the catalyst of Congress's dysfunction on the debt ceiling is delayed until Labor Day. The mantra of "Sell in May, go away" has transformed into "Buy in May, stay and play." With the DOW breaching 15,000 and the S&P breaking through 1,600, history is in the making. Where do we go from here? Instead of focusing on the macro-trend and bulking up on diversified top caps, it has been more advantageous for a trader to pick individual stocks.

3-month Targets of Individual Stocks
AAPL@$452 has risen back to it's resistance level of $465 just a month and a half ago, over $100 away from my previous target of $350. It's ex-dividend date just passed, and June doesn't seem so far away. CNBC has stopped its relentless bashing. The earnings release must of placated that audience, but there is still a lot of air uncovered. I am reiterating my target of AAPL to $400.

NFLX @$217 has surprised me. It would be useless to use valuation to argue for the demise of this growth stock. I have doubts on their family plan. Their exclusive content may be too risky. However, Netflix has an edge over the competition. Besides Amazon, there are ads that detract the common consumer. I find it hard for Netflix to implode in the next 2 years, but it needs to be more aggressive to compete with cable or someone else will. I am firm on my target of $200 for NFLX.

SNE@$17 was bound to happen. With G7 giving Japan the green light, I find it hard for this company to go down. Sony posted an annual profit for the first time in 5 years. This is just the beginning. My target on SNE is $25.

JNPR - $18 up from $17
AMD - $6
S - $10