So markets were DOWN about 2% to 3% on different indices......
Broader market like yesterday were the telltale of the weakness...two days in a row.....
Decliners led advancers by 9 to 1 on NYSE & 5 to 1 on nasdaq........
So.......what caused this ROUT.........
Countrywide comments that home equity loans are in "trouble"...caught everybody by "shocking surprise"...and you all know that Wall Street "hates surprise"...so SELL first then think later was the strategy......
We all know that home equity loans are given to best credit-worthy customers.....and if they are in "crunch".....there is going to be continued weakness for :
Housing
Financial group
Retail
This scenario was "known to wall street"...but in sub-prime context......nothing more..NOW the housing will not show any recovery till 2009.........that is "new news".......
So what is the game plan.....the game plan is based on the following premise :
There is no worldwide slowdown.......
Technology is entering its busiest 2 Quarters......
US is facing slowdown in housing & financial area ONLY.......
Chinese economy is accelerating in 11%+++
India & Asia is booming ........
I am expecting a GREEN close on thursday......
AAPL needs time to gather strength...it is a BUY on weakness......$120 area is support.....
AMZN lit UP the AH ...Fast Money said SELL AMZN & SHORT AMZN.....so it is UP only $10....to new HIGH......
NTRI is the disaster in AH down $14.......
RIMM was down $8.73 ...has improved $2 AH...first real pullback from its recent RUNUP to High of $235...last trade $223.....
SNDK behaved "outstanding by staying GREEN in this crappy market.....telltale of good things to come"......
UXG stayed GREEN.......
STP,SNDA & FDRY were down ......
FDRY reports earnings AH on thursday......will do a FA on wed.......
GOOG behaved well and staying above $511 support area.......closed $514...UP $2 AH also.....
ICE ,NMX,NYX ,NDAQ heading to support area.....
MSO close @ new 52 week LOW......"not a good thing"......
All solar stocks like STP,FSLR & TSL...took a major "U turn today on the downside"
Other than that everything was perfect.......just a joke ......needed one for sure .....
Please do your own due diligence in a DIVERSIFIED TECH mode.
BLOG does not give buy or sell.
Saleem
1 comment:
SWC down another 8.25% today. In the past three days it dropped a total of 20%. SWC is the only palladium and platinum producer in the US. Palladium and platinum are very important precious metals that see price trippled in the past three years. This is a stock with extremely bullish fundamentals and this may well be the CAPITULATION event where you get an excellent entry point. See my analysis of the SWC fundamentals.
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