Option Expiry & lackluster earning report from AA,INTC & JPM took a toll on investors/traders sentiment...S&P 500 pulled back to 1136.03 from an intraday high of 1150.41..a pullback of 14.38 points or <1.25%>....
Market so-called commentators who have been BEARISH would like you to believe that they have been RIGHT since July when they all were sure that we are heading way way down and declared that 980 area in S&P 500 is the-TOP of this market......
So here we are...@ 1136.03 near absolute high of last 15 months......
This IS a very strong ,orderly UPTRENDING market.....as we are about to enter a strong bull market by Q3 which will anticipate a "robust"Q4/Christmas......
I do not see a downside correction below 1100 which will act as major support area......
Sector rotation is happening RAPIDLY..almost like back & forth same strong sectors are coming in vogue......
Solar sector took a hit based on rumour of a severe /earlier cut in subsidies......they will stabilize around these levels..timing of this bearish rumour coincided with option expiry????
So solar stocks have corrected big time to lowest level of RSI in 4 months..now they are in 40's which IS a major buy point......
Here is my $/sector allocation as of Friday's close :
TSL 21.45%
POT 15.42%
APWR 10.87%
SOLF 10.59%
IAG 8.83%
ASIA 8.20%
PALM 7.66%
SLW 7.44%
AUY 5.08%
TC 4.46%
FUQI call Feb $22.50
Having 10 stocks in different areas gives me high comfort level.This market has remained tough for those who are REACTING to every pundits statements about what IS good or bad stocks...this way you are buying near top or selling near low...NOT a good trading/investing approach......
You need lot of CONVICTION in this market which only comes when you can have your OWN interpretation of events FA/TA/TAPE wise.....there is such a thing as overbought & oversold....
Good luck with your strategy..IF it WORKS it is FINE BUT IF it does NOT ..please learn from it & CHANGE !!!!!
BLOG does NOT give buy or sell.
Saleem
Hi Saleem,
ReplyDeleteI think part of the drop on Friday was because of the long weekend and traders did not want to hold on to their positions and are risk adverse.
They should return on Tuesday.
Best Regards
Hi Standards,
ReplyDeleteYES...long weekend after a huge RUNUP is also a factor for taking profit.
Saleem
Saleem,
ReplyDeleteI don't see any slow down in 3rd or 4th quarter of this year. We are in networking sector and the book to build ratio is 2:1. This is bad since we can not build enough to support for the robust demand. However, the factory was booked till September of this year and we plan to increase labor force to 80% from the current level. We should see better ER starting this quarter thru the end of this year.
Michael
Hi Michael,
ReplyDeleteThanks for your take on order trend which IS what I am saying in my BLOG.
As I am repeating that this is a uptrending bull market with orderly minor pullbacks.
Videos & Bandwith needs are outpacing worldwide...so the networking infrastructure is continously being upgraded..3G 4G needs lot of bandwith.
Saleem
Hi All,
ReplyDeleteBDI daily report can be found here.
www.dryships.com/pages/report.asp
Futures are slightly positive tonight.
Best Regards
GOOD MORNING to all
ReplyDeleteGNK is taking it on hte knuckles--ouch
Was looking for it to run up today
My only bad boy is APWR seems stuck
at $17
I love my TXT it is jumping
APPLE is poping on the tablet news!
Buy the news sell the news conference/release on the 27th it is a big deal IMHO
Good luck to all
Hi Madmax,
ReplyDeleteStocks are TRYING to stabilize today......
AAPL goes through sell the news many times....
Saleem
Hi All,
ReplyDeleteGNK will follow BDI. It lags a bit.
Rumors of buyout on TXT at $30. I think it's just hype but you never know. Earnings on Jan 28th.
Best Regards