Monday, August 17, 2009

Market closed near low of the day....

All indices closed near low of the day......

Internals of the market were "much weaker"......more like NASDAQ 2.75% slump.....

So..we almost got our much feared 3% correction in a hurry........

S&P 500 closed in support zone of 980 area.......

RSI are as follows in indices after today's pounding :

S&P 500..51.45

Dow.......53.58

Nasdaq..47.85

Sounds like an "oversold condition"

AH futures are green

Nikkei is green

Oil is green

Gold is green

CAD is green

I think all the AH green is saying something.......

VIX reflected today's drubbing it closed UP 14.92% @ 27.89

AH TSL reported a beat which was pre-announced.....UP 50 cents AH

In correction @ elevated levels.....low RSI stock gives you better protection....

BLOG does NOT give buy or sell.

Saleem

7 comments:

standardshigh said...

Hi Saleem,

BDI -70 2704 weak demand

The market has been sold down below the desired strike prices for options expiration. Traders who bought puts then sold off the market did well. All my covered calls were in the money last week, now out of the money and should expire worthless on Friday. I would expect the market to move back up after expiration, however BDI is anemic. Not much joy out there to propel the market higher.

Best Regards

Stocks100 said...

Hi Standards,

As i have pointed out many times that 3% correction can come out of nowhere..OE is as good a time as any...

I am happy that your covered write will not get called.....

Thanks for BDI info.....

Saleem

standardshigh said...

Hi Saleem,

RIMM appears to have great support in this 70-72 area. So I wonder, should I buy now or wait for further price erosion. A quandary.

Maybe a low ball offer during the slump of the day could bring results.

Best Regards

Stocks100 said...

Hi Standards,

You are a savvy investor/trader...

RIMM looks very strong today....and is near lower end of the trading range....

My cost $79.29.....so you ARE buying about $6 LOWER......

Good luck on your decision....

Saleem

standardshigh said...

Hi Saleem,

After examining the RIMM charts MACD,RSI it could be, we are headed lower in the near term. I will delay my purchase until further weakness.

Best Regards

standardshigh said...

Hi Saleem,

You have a money maker $$$$ RIMM even at $79+. Average down for a bigger payoff if you can. Earnings next month? Should be very tasty $$$$. Nice move today, due to upgrade in price?????? This stock could provide serious payout in future. $$$$$$

Best Regards

Stocks100 said...

Hi Standards,

RIMM is my largest holding 36%....POT 31%,SOL 26%...RVBD 7%..

As I am fundamentally driven swing trader.....I am quite bullish on all 4......

When they move.....it is a move $$$

Saleem