Tuesday, September 2, 2008

246 Dow points Rally failed ?????

Markets tried to celeberate minor damage from Gustav & drop in oil.......

But......

There were lot of sellers waiting to lock their position ????

In bear market rally is generally sold...especially a HUGE rally of 246 points......

Today's selling is no indicator of what will happen on Wednesday......

We are getting oversold very quickly...so do not be surprised to see a firm close on Wednesday....

In my portfolio :

CSIQ rating 50/95 target $43.22

SOL rating 50/95 target $28.36

Please understand that old rules of selling @ 8% loss or let the winner RUN...does not apply in bear market..loss should be booked more like 5% and lock any profit...or else risk sitting with a HUGE loss & evaporating profit on a weekly basis.......

This IS a trading market until it CHANGES its character.....

BLOG does NOT give buy or sell.

Saleem

4 comments:

Unknown said...

Hello Saleem..

After long time .. Thanks for your daily notes on market trends. I own a small position in SOL. I know you own SOL also. I just want to hear your opinion on SOL price movemnt in the coming days. what's the downside risk.

Thanks
RAM

Stocks100 said...

Hi Ram,

SOL is a very volatile stock....it is trying to build higher base currently.

SOL needs to be looked @ long term...it is a smaller version of LDK....

Base building takes time ...once SOL breaks away it will be in $20's...

Base building involves testing of support..wherever that may be..today we went to $16.65 and turned higher...which IS encouraging....next support is 50 DMA @ $16.33....

Patience & conviction with SOL will be profitable..imho

Saleem

standardshigh said...

Hi All,

What an unusual day that was. A good time to place your bets for the next move. Interesting movement in FRE. They easily sold 1B in notes at 4.25% due 2013 and more than 2B more this week. Business as usual? Analyst say they are now stable? May not be in the black for a few years but will eventually. No more talk of FED takeover? One MM has taken a 5% position in FRE.
Something to consider........
Have a great week! ATL gas $3.49

Stocks100 said...

Hi Standards,

Thanks for the latest info on FRE...

These stocks have outperformed the markets big time.....

Oil is lower this AM again....

Saleem