Markets went through "brutal & painfully severe correction in the last two days"
If you are feeling "all shook UP"..do not think ..you are alone...millions are in the "same boat of pain"
You must evaluate your stocks or trading position from fundamental point of view.....why ?
In every major slump... like what we had two day's in a row......technicals look awful.....charts on most stocks are broken down......because charts "do NOT distinguish between a long-term trendline vs worse drubbing in 5 years...in two day's........
It also gives you a"moment to reflect on your own portfolio vs changed conditions"..it is imperative that you re-evaluate all your stocks and see the direction of that sector in "peace & quiet"......
I made one change in my portfolio based on my rethinking of CSCO cc...it identified "clearly slower conditions in US & particularly in finance related cutbacks on spending"
So I booked a loss of $5.40 per share on RVBD........
Sale of RVBD was also prompted by a severe drubbing which VMW was taking in the last 5 day's...so it was a sale based on relative preference for a stock which may recover quicker..which is VMW....
I bought VMW @ $89.80...which I had sold on monday @ $112.....
So..my new portfolio is :
AAPL,CMED,FMCN,SINA,VMW & RIMM.......
As you can see that.... I would rather be in stronger stocks relatively speaking...than be in something which is hitting 52 week low.......
I also reposition portfolio based on the chances of "quicker turn around stocks"
The idea is to be ready for next day with the best ideas.....not so so !!!!
My portfolio was down 5.9% today.....
My choosing US$ and selling C$ is still in play in my trading account as Canadian $ was further down against US$......
Why am I pointing this out....because there is a myth out there that US$ is tanking against all currencies....not so..it is gaining against Canadian $ since yesterday...and I am getting some real $ in my account because of switching into US$ based trading account.....
S&P 500 did close above 1470 support ...I predicted that it will go below 1470 and then it will fight its way back...which is exactly what it did.....S&P 500 closed @ a very respectable 1474.77.....technically a very encouraging sign $$$...
Another very encouraging sign was the internals......advancing stocks & declining stocks came very close to even in both NYSE & Nasdaq......
AH NVDA & QCOM ER were mixed NVDA was well recieved UP $2...QCOM was guiding lower so was down $4+
Solar stocks were strong FSLR,JASO (reports before open),ENER......
All superstar stocks were taken to the cleaners....GOOG,BIDU,AAPL,RIMM,MA...tok it on the chin......
Please do your own due diligence & spread your money around in 5 to 6 stocks.....
Ensure your comfort level @ all times...sell if you MUST...do not brood & move ON......
Will post around 830am to see where futures & pre-market stocks are heading.
BLOG does not give buy or sell.
Saleem
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