Markets are anxiously waiting for 1PM speech followed by Q&A...which may be "more revealing"
Credit mess is improving vastly based on LIBOR & ABCP recent numbers.....LIBOR has contracted to only.25% vs 1% before vs US rate.....
ABCP is also showing "contraction"......
These are very important signal reflecting improving liquidity situation.....for credit market...so it is NOT freezing up NOW.......
Markets in my opinion has seen it LOW yesterday.....& will build from here.....
Markets will try to "form a solid base from hereon"
Retail story of weakness is evident NOW...which is a confirmation of all the anxiety in economy.....retail will remain "sluggish until we see resolution of current issues"
So...... Ben Bernanke please talk like a CEO with an real action plan...not mumbo jumbo & DUAL focus.....forget the word "inflation....save the economy...it needs a KICK start "
In my portfolio :
AGU is down $2.30
MA is down $6.28
CSIQ down 62 cents
LDK is UP 36 cents
AKNS UP 93 cents
Solar is going thru its "drubbing today"
@11.34AM the following are green:
BRCM,SIRF,BX,ICE,YHOO,AMD,CMED (all-time high),
NYX,NMX,ISRG,GRMN,HPQ,CIEN.
Please start nibbling in this WEAK market as it is a very good strategy to get stocks which are on Sale these days.....ensure your OWN due diligence..check FA & TA both for your "comfort level"
BLOG does NOT give buy or sell.
Saleem
26 comments:
Saleem,
I have a question for you on using stops to limit losses. Just how tight do you make a stop? I was stopped out on a quick dip before and got burned. What are your thoughts on setting up successful stops. Thanks
Standards
Hi Standards,
I do NOT use stops as I am in front of my computer during trading hours.
In WEAK market you need to use STOP based on your own analysis.
In strong upcoming market STOP can be 10% BELOW your entry points...and you leave it there until stock moves UP...then you either plan a selling strategy or move STOP 15% below current level.
STOP is good for people focussed @ work or are travelling.
Know the volatility of your stocks ..before deciding on STOP.
For example MA had a trading range of $11 already within 3 hours.
Saleem
IMHO, Never use stops; MM will just take the stops...
Saleem, how are you feeling about Solar stocks, is the correction done ?
Hi Troy,
In the stocks that we own & SOLF..it appears that correction in solar is coming to an end.
Now solar will behave with markets.
Saleem
BB speech was lame. Even if the market does rally and even if he cuts, He is still lame! It seems that the Q&A was pre approved questions. At least, I don't think the questions were asked that most wanted to hear be asked. IMO.
Saleem, I know you make your own decisions but I just wanted to let you know that MA was just stopped out by IH. Best wishes.
Hi Doug,
Thanks for your update on MA status with IH....
Watch it go UP now.....
Do you know what price they stopped ?
Saleem
Saleem, here is the email alert:
IH Alert - MA $192.57 Volume:3M Pct Avg Vol:73% ( Play: Stop Advisory=192.80 on buys at 211.98. Bounced on the Bernanke news but unable to recover the 50 day MA. )
I have seen IH stop out stocks before and some of them did, in fact, turn right around and go up. Best of luck.
The time that the alert was sent was 12:54 P.M.
Hi Doug,
Thanks for the details of MA stop including time.
I have great respect for IH..based on what I have observed through your postings.
IH gives quality trade ideas to its client...who DEPEND on IH to give them profit...
It is also important for them to PRESERVE capital.....
Since they are 100% TA driven...they are very disciplined.
I am 70% FA & 30% TA..where CONVICTION develops.
MA is about $4 higher than their stop price.
Saleem
I am glad for you and I am always rooting for you and your stocks to win! LOL...
DOUG and SALEEM:\
I wish to say thanks to both of ya for informative information.
I was hoping for a pop because of BBernanke, looks like we got one now at 2:30 PM hurray
Time to get excited.
SALEEM is correct if you do NOT have conviction for your stock you will lose a lot of $$$$$.
Stops shave not worked for me.. IBD insists in using them. Ouch is all I can say!!
I have used an auto matic traling stops 14% below my purchase price, while on vacation.
Peace to all
Madmax
Mad and Saleem,
I agree with both of you. Even though I am more day trading than anything, I buy stocks that I believe in the FA so that when I make a trade, I have that much more confidence that, if not today, then maybe tomorrow, I will get the bump I need. I do like when I get the email alerts for stop outs, so that I can reevaluate my position, given that a trend has broke, according to TA pros, but more times than not, I am out before the trade goes south. I hope. LOL. Thanks guys, for the discussion. I still have much to learn and appreciate your input.
Great call on MA Saleem. You are better than IH maybe we should pay you to be on this blog ;)
I bought MA at 191.64 and AGU 66.54today.
They are both doing good so far thanks to you.
I also gambled this morning and bought 1000 CFC @ 5.62 just before the Bernake's comment and sold it @7.77 made some quick bucks. I usually lose when I do crazy thing like this. I was lucky. I almost sold it when it went down to 5.39
Hi Doug,
Great trade is always a very nice trade.
I am getting "rusty in my old age...so playing it safe"
I am more focussed on risk/reward ratio.....so staying PUT with all my position.....
When markets are sloppy...everything goes below 50DMA....whether the name is MA,AAPL,BIDU or RIMM.....
But the important part is that one should known which ones to KEEP.
You are becoming very good trader...nice to see that $$$$
Saleem
Saleem,
Im a little worried about ESLR. IH stopped it out just before the close. Here is what they said:
IH Alert - ESLR $15.57 Volume:5M Pct Avg Vol:101% ( Play: Stop Advisory=15.60 on buys at 17.71. Gapped lower and not recovering.
I was wondering if you could look it over (RSI...) and tell me if you see weakness ahead? Thanks for any insight. My cost basis is $16.32 just so you would know.
Hi Doug,
Based on RSI...ESLR is most oversold in the last 3 months...
Downside risk $14.45...
Should bounce here...if you want to get out.
Saleem
thanks for the strategy help Saleem.
SALEEM
CNBC say MA is in trouble.... Based upon ohter credit card companies woes High delinquency!
Buy MA is NOT into lending money
They are into a transaction fee only. MA has zero exposure to delinquencies.
WHat gives here??? Any wahy they said buy at $185 or lower. I am sorry about the news, I wanted MA too.
Peace to all
Madmax
Hi Madmax,
MA was down $11 on Capital One warning this AM...closed down 59 cents.....
So..now AXP warns and MA is down $6.99AH.....
MA is NOT in the same business...they are in transaction FEE business...and they are growing worldwide with FEES....
Sell first by RETAIL and MM is ready to SCOOP.....
Saleem
Saleem,
Interesting move on CFC. First they spread rumor of bankruptcy to drive down shares, then news of advanced talks of a buyout. Could they be doing the same to MA? Visa IPO will be ready in the fall from what I'm reading. HDB is starting to move again.
Standards
Hi Standards,
MA is trading @ 27.50 PE.....
They are trying very hard to keep it down $198.30 50DMA...
RSI 42.44..lowest in last 90 days..which says it is oversold !!!
Retails are the ones selling....
MA should be UP sharple after ER.
Saleem
Hi Saleem,
I have been reading your blog for a while now and have invested in CMED, AGU so far and made $$$...
Can you suggest me any books to understand TA?
I visited china recently and wanted to invest in FMCN and YGE, what is your take on these?
Thanks,
-Zack
Hi Zack,
There is a banner ad @ the left hand top corner of my latest post....you can click on that and see which chart books you like.
YGE & FMCN are both good company and are trading @ reasonable price.
Welcome to my BLOG.
Saleem
Hi Saleem,
This is what I see at the top left corner:
"Free China Stock Report
Learn How to Profit from the China Stock Market! Free Online Report "
Not sure this is the correct link you were pointing me to.
Thanks,
-Zack
Hi Zack,
Google keeps changing..banner ads..
When you go to the latest post ..not the one you are in... try to refresh it...and maybe you will see chart,books ad....they rotate many ads....
Saleem
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