Monday, September 24, 2007

Rally failed today ?????

Markets failed to hold their gains....a REVERSAL in progress !!!!!

Market internals were "negative".......

More declining volume.....

More declining stocks.......

The above is a sign of "markets need a pullback"...which MAY have started today !!!

2 to 3 % pullback should not "surprise anybody".......

Market went into "overbought area"....

Not all stocks will pullback.........

Stocks with "most gain will pullback the most".......

It is alway's important to take "profit along the way.....do not fight for the last $$$".....

There is "two weeks left into next set of ER......thus a healthy pullback for strong stocks"

After ER momentum stocks will "fly again" $$$$$$

In my portfolio the following happened :

Sold SWIR and took a loss of $1.12 per share.....

Bought CMED @ $38.95 as it is stable after Brean Murray downgrade on thursday...that day CMED traded 2 million+ shares and was down to a low of $38.20 from previous day high of $42.34.....RSI 63.85

SNDK was down $1.66 on below average volume...it is washed out.....RSI 45.87

NMX UP 77 Cents.....trading @ low end of all exchange stock...RSI 49.77

FMCN UP 79 Cents.....RSI 69.70

WFR UP $1.98 on heavy volume....RSI 57.50

NVT UP 33 Cent...RSI 64.60

Why am I giving RSI on every stock today.....hopefully you will also re-evaluate your portfolio the same way....high RSI will correct in a hurry !!!

Jimmy the Cramer is making an "obvious technical call saying markets will pullback...and wisely telling everyone to take profit in RIMM,AAPL,GOOG,AMZN "

Based on all of the above....tommorrow could be a "rough day with markets pulling back & everyone locking profit"

If I sell anything I will post in my 11AM report.......

I may sell to lock ANY profit as I do expect 2 weeks to be down to neutral @ best......

I do have sizeable gain...which I would like to preserve.......

I have already pulled out 15% equity as of wed AM.....

Good luck on your strategy for next TWO weeks.......

BLOG does not give buy or sell.

Saleem

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