Markets are on a roll...thanks to a long list of non-believers...who keep telling everyone that resistance is here already & a serious sharp pullback is overdue for many weeks now.....
Art Cashin of UBS "takes the cake" for predicting demise of this rally on a daily basis for months????he is always highlighting non-issues which in his "sharp mind" will kill this rally in a hurry...he also points out TA for daily collapse of this market for months.....is he reading charts upside down????
There was strong volume in Nasdaq.....Dow & S&P had much better volume compared to last three trading days...
VIX closed @ 34.53..lowest close in months......
There is roughly $3.7 trillion sitting in money market funds earning close to zero.....waiting to join the party.....
Most sectors are in a serious "bull mode"......
About my focus on RSI.....Nasdaq RSI @ close was 69.22.....overbought level will be 85 area....
Ben Bernanke will talk around 10AM...when "BB talks market listens"
AH Tue PHM & CTX reports....their guidance COULD be UPBEAT !!!!!
BLOG does NOT give buy or sell.
Saleem
8 comments:
Slaeem and all
Here is to hoping that we have another great bull day.
I have heard nothing but bad news on CNBC -- they are predicting a crash to 5-6,000 starting this week
Where oh where do they get thses news chumps from???
I cancelled my subscription to IBD--sorry, but for what you get did not seem worth it to me any more.
Good luck to as we are all seeing GREEN in our portfolios.
Hi Madmax,
Crash.....sure why not....that is called "experience from nowhere"
IBD gives free market recap video every evening around 7PM which is technically good...I do watch it..it is only 3 minutes of my time...
CNBC will be like another channel with few audience.....they have "earned it"
Saleem
SALEEM
Thanks for your kind reply!!
We seem to agree about the news guys,
thats means we know hype when wwe hear it.
Have you seen LVS--wow awesome -- It may get to my buy price of $15 smackers--selling is my true weekness
Oh -hey I got a little of NVDA at $11.75. I am happy
Cheers
Hi Madmax,
We all have different style for trading/investing....there is no right or wrong way...it is all about your comfort level & if your time horizon is longer...then you have a very good chance of making money.
I am glad you bought NVDA...things will get better for NVDA which will be reflected in guidance...today analyst are playing their usual game before ER.
Saleem
Here is some commentary from Janigan:
The S&P 500 is up almost 30% from its March 9 low. This has some investors wondering if we are now in a new bull market. Whatever you choose to call it, we remain skeptical and warn you not to become complacent. After all, it is not as if all the problems in the economy have suddenly gone away. On the contrary, they are growing worse. The only difference is they are now getting worse at a slower rate.
Take the latest S&P/Case-Shiller report on housing prices. The 20-city index documented an 18.63% decline in housing prices from February 2008 to February 2009. However, that was a little better than the 19.03% decline from January to January. In other words, things are getting worse, but at a slower rate.
The GDP report for the first quarter of 2009 also was interesting. The 2.2% rise in personal consumption expenditures was certainly welcome news, but it was not enough to offset big declines in inventories and fixed investment. Furthermore, international trade is falling off a cliff. Exports fell 30%, which came on top of a 24% decline in the fourth quarter of 2008. Imports plunged 34%. They were down 17.5% in the fourth quarter. Overall, the economy contracted 6.1%, but that was somewhat better than the 6.3% contraction in the fourth quarter of 2008. In other words, things are getting worse, but at a slower rate.
The Federal Reserve added fuel to the stock market’s rally when its Open Market Committee released a statement saying,“… the economy has continued to contract, though the pace of contraction appears to be somewhat slower.” You guessed right:Things are getting worse, but at a slower rate.
Of course, things cannot get better until they first start getting worse at a slower rate. Therefore, investors are not wrong to cheer. A bit of a rally in stocks is fully justified. However, a 30% rally in just a month-and-a-half seems extreme. We continue to believe long-term investors should think more about buying than selling. Anyone with an investment horizon of five years or longer is not likely to regret buying stocks today. Nonetheless, we also expect a meaningful sell-off in stocks in the short term. Earnings season will soon come to an end. Given the strength of the recent rally, profit takers will be tempted to take some money off the table. This kind of activity could easily drive the Dow lower by about 500 points or so. Be prepared to buy more of your favorite stocks when that happens.
Hi Madmax,
Thanks for posting market commentary....
Saleem
salleem you keep refering to rsi reading. I'm not sure what it means. Realitve strenth index? if so why important & how to use it. Is ther a standard bullish top & bear bottom Number. or does each sector have a guidline number to start with. Example please when or if you have time. As always great to hear your thoughts & reflections.
Hi Dug,
RSI is relative stregth indicator.
There is several ways to interpret ...
First I go to stockchart.com (free site) under gallery view and then select any stock ticker which you want to review or you can review COMPQ which is the symbol for Nasdaq.....review all the info then click "default sharpchart" on top left hand....which will give you RSI reading for past 4 months...
You can clearly see that there is a range of RSI for that period and can play those range for trading....even if you do not trade frequently it is a great indicator of when NOT to buy.....
Yes the range is different for different stock.....and also CHANGES with market sentiment....bear market range is much much lower and bull market range for RSI is higher.....
Hope it helps.....if not ask me any specific question about any stock RSI.....
Saleem
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