Markets have staged an impressive rally after hitting another low in most indices......
On Nasdaq we hit 1268.64 on Monday......a new multi year low to 12 years in past...but by Friday in next 96 hours Nasdaq surged 162.86 points to close @ 1431.50 an impressive 12.84% from Low.....
So.... what was the catalyst for this quick turnaround......
If you ask technicians..they will tell you that it was NOT meant to be.....we were suppose to go to either 5300 or 4000 on Dow if Pundit Jimmy the Cramer or Louise Yamada to be believed....I am glad I do not put much faith in either of their latest call...Louise has been correct for the most part but has been very vague in time sequence...so it was hard to make money on her accurate trend call so far.....
If you ask fundamental types...it was clear that when index makes fresh new lows on a multi year basis...it often signals a "turnaround" ......
Markets have been discounting financial mess for 19 months...and were clearly READY to look AHEAD.....
CEO of BAC,C,JPM gave a clear SIGNAL that worse is behind them.....so market moved on this MAJOR fundamental SHIFT......
GE also was given a notch lower credit rating...much to the relief of GE & its followers..as the fear was that it will be ratcheted down several notch...GE CFO was very confident going forward...another Fundamental shift......
I am sure that Technicals always follows fundamental news......
What technicians will NOTE that index will take out 50 DMA in a HURRY...Nasdaq is only 48.54 points from it 50 DMA of 1480.04...could be 1 day UP move......
I am sure ...we are going to hear endless analysis of this being a bear market rally & soon we will go lower than previous lows.....based on "I SAY SO"......
It is one year of BSC fiasco......it took full year to digest all the implications of BSC collapse & LEH Bankruptcy.......
Markets have come a long way in DEALING with "GREED & CORRUPTION" in worldwide markets.......Bernie Madoff became a poster child of this decade???
Markets will move quickly away from LOWS......
There are several ways to benefit from this UPSWING.....stay in strong stocks for several years for maximum gain instead of trading out with few cents gain......It MAY be beneficial to ADD good business which LAGGED in this UPTURN.....like Ag & Dry shipping.....
Semiconductors are looking very strong and should be positioned in every portfolio......
Chinese ONLINE Gaming stocks are looking good......as they have build a solid long term base...
I was thrilled to see some accountability in main stream media...as Jon Stewart took the holy task of calling the "callous calls " made by CNBC so called pundits/experts on a daily basis without any performance metrics...every day they tell you to BUY or SELL stocks without any analysis & hardly come back to account for their over 70% WRONG calls....
CNBC should work on accountability of 1000 of calls given to viewers to either buy or sell....they OWE this to their audience on a daily basis.....CNBC behaves like a "boiler room" say anything without accountability......where is the integrity in Journalism.....Host/participant of these shows must NOT be pushed as experts as they have NO track record of any repute.....buying puts & calls on the same stock is NOT considered a winning strategy...it IS a losers game......
Coming weeks should take index to respectable levels like above 50DMA & will hold on a long term basis......
Please pay attention to RSI when buying......it MAY hit resistance very soon...& MAY need time to digest GAINS.....
Bollinger Band is also a very good tool to see resistance.......
G20 Finance ministers had a very good understanding of what needs to be done on an ongoing basis & Will make "specific recommendations" for April 2 meeting for Presidents & Prime ministers of G20.....
I expect markets to move HIGHER after April 2nd meeting......
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hear yea Hear yea --IBD 100 listing:
Rank Company Symbol Price High
---- ---- ---- ---- ----
1 STARENT NETWORKS CORP STAR 16.92 -10.1
2 NEUTRAL TANDEM INC TNDM 20.96 -3.6
3 VISTAPRINT LIMITED VPRT 26.35 -31.9
4 I T T EDUCATIONAL SVCS ESI 106.34 -20.5
5 AMERICAN PUBLIC EDUC INC APEI 41.37 -22.3
6 LONGTOP FINANCL TECH ADS LFT 19.3 -11.1
7 NETFLIX INC NFLX 39.37 -3.7
8 SYNAPTICS INC SYNA 24.45 -33.8
9 H M S HOLDINGS CORP HMSY 35.33 1.2
10 NETEASE.COM INC ADR NTES 22.23 -18.2
11 SYNIVERSE HOLDINGS INC SVR 15.61 -31.9
12 N V E CORP NVEC 33.87 -14.5
13 S X C HEALTH SOLUTIONS SXCI 20.29 -6.4
14 CREDIT ACCEPTANCE CORP CACC 21.16 -32.9
15 GREEN MTN COFFEE ROASTRS GMCR 41.4 -7.5
16 SHANDA INTERACTIVE ENTMT SNDA 36.31 -5.1
17 PETMED EXPRESS INC PETS 15.28 -19.7
18 ENSIGN GROUP INC ENSG 15.85 -17.7
19 N C I INC CL A NCIT 26.38 -20.3
20 PANERA BREAD CO CL A PNRA 51.56 -20.7
21 BUFFALO WILD WINGS INC BWLD 34.58 -23.1
22 QUALITY SYSTEMS INC QSII 42.5 -11.4
23 ENERSIS S A ADS ENI 15.2 -26.3
24 CERNER CORP CERN 42.56 -14.9
25 SUBURBAN PROPANE PARTNRS SPH 36.03 -15.4
26 OPEN TEXT CORP OTEX 31.77 -18.7
27 EL PASO PIPELINE PARTNER EPB 18.5 -24
28 AEROPOSTALE INC ARO 25.23 -32.5
29 WESTWOOD HOLDINGS GROUP WHG 37.92 -28.9
30 COMPUTER PROGRAMS & SYS CPSI 27.75 -10.5
31 EDWARDS LIFESCIENCES CP EW 61.4 -8.3
32 DIAMOND FOODS INC DMND 22.23 -30.8
33 WORLD FUEL SERVICES CORP INT 27.72 -29.8
34 GILEAD SCIENCES INC GILD 45.43 -21.2
35 B M C SOFTWARE INC BMC 29.74 -27.2
36 TOWER GROUP INC TWGP 23.5 -24.3
37 THORATEC CORP THOR 23.03 -31.1
38 KNIGHT CAPITAL GRP CL A NITE 17.26 -13.6
39 SUNOCO LOGISTICS PTNR LP SXL 51.72 -7.6
40 PAPA JOHNS INTL INC PZZA 23.65 -22.9
41 EMERGENCY MEDICAL SVCS EMS 31.35 -19.8
42 HANSEN NATURAL CORP HANS 36.99 -12.4
43 ALLEGIANT TRAVEL COMPANY ALGT 39.77 -18.9
44 EMPRESA NAC EL CHILE ADS EOC 37.7 -28.2
45 TRANSDIGM GROUP INC TDG 32.12 -27.9
46 CAPELLA EDUCATION CO CPLA 51.9 -22.4
47 NUSTAR GP HOLDINGS LLC NSH 19.93 -28.8
48 MATRIXX INITIATIVES INC MTXX 16.08 -17.5
49 TETRA TECH INC TTEK 22.22 -26.3
50 BRINKS HOME SEC HLDGS CFL 21.4 -15.6
51 GRANITE CONSTRUCTION INC GVA 40.42 -19.2
52 SYBASE INC SY 28.89 -21.9
53 TERRA NITROGEN CO LP TNH 125.1 -27
54 APOLLO GROUP INC CL A APOL 68.8 -23.6
55 AUTOZONE INC AZO 160.51 -0.6
56 DOLLAR TREE INC DLTR 41.21 -7
57 E P I Q SYSTEMS INC EPIQ 16.68 -11.8
58 LINCOLN EDUCATIONAL SVCS LINC 17.46 -2.7
59 AECOM TECHNOLOGY CORP ACM 25.76 -25.3
60 NICE SYSTEMS LIMITED ADR NICE 24.75 -31
61 C N A SURETY CORP SUR 15.22 -33.5
62 AARON RENTS INC RNT 24.88 -17.7
63 ROSS STORES INC ROST 33.01 -20.6
64 TEVA PHARMACEUTICAL ADR TEVA 45.39 -6.9
65 NETLOGIC MICROSYSTEMS NETL 26.55 -34.1
66 J & J SNACK FOODS CORP JJSF 32.91 -10
67 ADVANCE AUTO PARTS INC AAP 39.73 -12.7
68 FAMILY DOLLAR STORES FDO 31.52 -3
69 J 2 GLOBAL COMMUNICATION JCOM 19.28 -29.5
70 ELBIT SYSTEMS LTD ESLT 46 -28.2
71 NORTHERN TRUST CORP NTRS 58.73 -34
72 BIOGEN IDEC INC BIIB 48.5 -34.1
73 MEDCO HEALTH SOLUTIONS MHS 40.98 -21.2
74 CROWN HOLDINGS INC CCK 22.19 -25
75 ALTERA CORP ALTR 17.5 -27.7
76 CEPHALON INC CEPH 66.32 -18.5
77 MCAFEE INC MFE 31.05 -24.2
78 RALCORP HOLDINGS INC RAH 55.14 -25.6
79 IMMUCOR INC BLUD 23.91 -29.3
80 ST JUDE MEDICAL INC STJ 36.67 -24.4
81 BLACKBOARD INC BBBB 30.07 -33.2
82 MONRO MUFFLER BRAKE MNRO 24.87 -5.1
83 AMERICAN ITALIAN PASTA AIPC 32.09 -4.2
84 MYRIAD GENETICS MYGN 82.24 -7
85 CRUCELL NV ADR CRXL 20.42 -15.2
86 A A O N INC AAON 18.16 -21
87 DOLBY LABORATORIES INC DLB 32.89 -33.8
88 ACCENTURE LTD CL A ACN 30.12 -30
89 FLOWERS FOODS INC FLO 22.17 -32.2
90 GEN-PROBE INC GPRO 44.86 -28.1
91 HITTITE MICROWAVE CORP HITT 31.29 -28.6
92 I C U MEDICAL INC ICUI 29.62 -18.6
93 GRAND CANYON EDUCATION LOPE 15.95 -23.3
94 SILGAN HOLDINGS INC SLGN 47.84 -17.9
95 STERLING CONSTRUCTION CO STRL 18.03 -15.2
96 U R S CORP URS 40.05 -18.4
97 WATSON PHARMACEUTICALS WPI 28.57 -12.6
98 V N U S MEDICAL TECH INC VNUS 19.75 -19.2
99 ALEXION PHARMACEUTICALS ALXN 35.37 -26.3
100 CORINTHIAN COLLEGES INC COCO 18.15 -16.5
Hi Madmax,
Thanks for posting IBD 100....good list for future winners $$$
Saleem
Hi Saleem,
So enjoyed J. Stewart and his attacks on J. Cramer and CNBC. This is not a game! he said.
Journalism is dead, no integrity can be found. No fact checking, just report what is on the wire as fast as possible, with a slightly different spin. The media can be used as a tool, because they never check. Good optimistic blog today, hope it comes true.
Best Regards
Hi Standards,
It was TIME to bring Jimmy the Cramer to the "penalty box" for game misconduct.....
CNBC is running amock with "spin" & "agendas"....to make money for someone...?????
Jon Stewart rightly said.."it is NOT a game".....
Markets are finding footing !!!!
Saleem
Good morning all.
A technician I read states resist points start @ 775 / 780 / 800 / 805 with the 65 day @ 820. Failure will bring a re-test of 677.A break below 677, we go to 600-650 and then 500-560. Any and all thoughts are welcome. Good luck on your trades.
Hi Victor,
Thanks for your info for Resistance & LOW target for S&P 500....
I will take the TOP end of resistance @ 820...nice move UP from here $$$$$
Pay attention to RSI for resistance in stocks....
Saleem
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