S&P 500 RSI was sitting around 69.00 after wk 1 of Jan 2010.....Now on Friday's close we are @ 33.36...a stunning crash in 14 day RSI of 51.65%....this is way more steep than March low in terms of speed & % drop????
Are we looking @ financial meltdown which nobody is aware of or even worse based on RSI indicator????
Most of the reasons given for this meltdown has NOT come to pass YET......
Stocks are becoming a SIX letter word and majority are heading for exit?????
This sudden change in market psychology does NOT make sense.......
STIMULUS are coming out...because economy CAN stand on its OWN two feet.......IS that such a bad thing????
China is increasing reserves for banks because they are trying to control RUNAWAY GDP growth & INFLATION......is that such a bad thing????
Obama is ready to cooperate with Republicans for JOB creations & passage of Healthcare bill....is that such a bad thing????
IF economy is IMPROVING based on FACTS of 5.7% GDP GROWTH in ailing US & 10.7% in supercharged China...then WHY stocks are such a bad place to be?????
Nasdaq is Down <7.99%>........which IS STEEPER than <7.59%> in October selling.....Nasdaq is back to Sep 8th level..a retrace of 5 months back?????
All of the above reflects EXTREME pessimism which is NOT backed by economic picture worldwide........
Leading Economic Indicator in US has been UP 9 months in a row......
Job is expected to show GROWTH of 50,000 on Friday.......
Based on the above TWO facts...this selling is NOTHING but short attack by big hedge funds & institutions to make money on the downside by scaring RETAIL to sell in PANIC......
RSI,SENTIMENTS & FACTS are telling me that "turnaround will be SHARP & SUDDEN"
We should RUNUP to 1120 area in S&P 500...then another bout of short attack.......
Markets are being FORCED to stay within a RANGE NOW..1070 to 1120......
Here is my $ allocation as of Friday's close :
APWR 17.09%
IAG... 15.33%
SLW.. 13.09%
TSL... 13.04%
PALM. 12.75%
SOLF.. 11.42%
AUY.... 9.58%
TC .....7.70%
As you can see...I am heavily weighted in Solar & Metals...Please stay diversified in this "bear attack"...
BLOG does NOT give buy or sell.
Saleem
2 comments:
IBD 100 listing
Symbol Company Name IBD 100 Rank Current Price Price Change
HMIN Home Inns & Htls Mgt Ads 1 30.76 -0.40
PCLN Priceline.Com Inc 2 195.35 -6.33
BUCY Bucyrus International 3 52.38 -2.73
CTRP Ctrip.Com Intl Ltd Adr 4 31.29 -1.69
GMCR Green Mtn Coffee Roastrs 5 84.82 -2.78
VIT Vanceinfo Tech Inc Ads 6 16.03 -1.69
RAX Rackspace Hosting Inc 7 18.22 -0.81
MFW M & F Worldwide Corp 8 36.29 0.86
ISRG Intuitive Surgical Inc 9 328.06 -6.95
CACC Credit Acceptance Corp 10 53.22 0.10
SIRO Sirona Dental Systems 11 32.17 0.20
BIDU Baidu Inc Ads 12 411.71 -6.14
ATHR Atheros Communications 13 32.07 -1.37
ABVT Abovenet Inc 14 58.64 -2.10
CTSH Cognizant Tech Sol Cl A 15 43.66 -0.90
WDC Western Digital Corp 16 37.99 -1.49
WIT Wipro Ltd Adr 17 19.69 -0.67
JCG J Crew Group Inc 18 39.21 0.70
VNR Vanguard Natural Res Llc 19 23.95 0.06
WX Wuxi Pharmatech Inc Ads 20 15.04 0.32
CAGC China Agritech Inc 21 27.33 -1.90
WCRX Warner Chilcott Plc 22 27.33 0.75
LULU Lululemon Athletica 23 28.24 -0.11
VIP Vimpel Comm Adr 24 18.14 -0.22
VPRT Vistaprint Nv 25 56.01 2.64
LFT Longtop Financl Tech Ads 26 34.66 -1.38
FFIV F 5 Networks Inc 27 49.43 -1.29
PEGA Pegasystems Inc 28 33.25 -2.46
NTY N B T Y Inc 29 44.53 -0.38
TLEO Taleo Corporation Cl A 30 20.31 -0.63
VRX Valeant Pharmaceut Intl 31 33.47 0.11
TII Telmex Intl Sab Ads Cl L 32 17.66 -0.12
LZ Lubrizol Corp 33 73.69 -5.57
AIXG Aixtron A G Ads 34 29.64 -1.20
SWM Schweitzer Mauduit Intl 35 75.24 -0.15
IGLD Internet Gold-Golden Lns 36 22.31 -0.24
AMED Amedisys Inc 37 54.95 -0.73
MA Mastercard Inc Cl A 38 249.90 0.45
AFL A F L A C Inc 39 48.43 -0.76
PRGO Perrigo Co 40 44.28 0.75
BCSI Blue Coat Systems Inc 41 24.65 -1.26
EL Estee Lauder Cos Cl A 42 52.52 -0.52
DBRN Dress Barn Inc 43 23.54 -0.14
TPX Tempur Pedic Intl Inc 44 24.89 -0.72
HITK Hi Tech Pharmacal 45 21.54 -0.39
AAPL Apple Inc 46 192.06 -7.23
NFLX Netflix Inc 47 62.25 -0.79
HUM Humana Inc 48 48.62 -0.17
ABC Amerisourcebergen Corp 49 27.26 -0.02
CAB Cabelas Inc 50 16.12 -0.10
HSP Hospira Inc 51 50.64 -0.32
AMZN Amazon.Com Inc 52 125.41 -0.62
PRXL Parexel Intl Corp 53 19.34 -0.22
ASPS Altisource Ptf Sltns Sa 54 22.95 0.63
KIRK Kirkland's Inc 55 15.46 -0.03
TSL Trina Solar Ltd Ads 56 21.93 -0.33
INFA Informatica Corp 57 23.69 0.01
SBUX Starbucks Corp 58 21.79 -0.29
ABV Comp De Bebidas Adr 59 92.56 -3.00
AAWW Atlas Air Worldwide Hldg 60 36.67 0.19
GES Guess Inc 61 39.71 0.02
NFX Newfield Exploration Co 62 48.94 -0.57
DECK Deckers Outdoor Corp 63 98.17 -2.64
SPR Spirit Aerosystems Hldgs 64 21.45 -0.43
JDAS J D A Software Group Inc 65 26.21 -0.67
BMA Banco Macro Sa Ads 66 28.51 0.42
VLTR Volterra Semiconductor 67 19.49 -0.74
ACF Americredit Corp 68 20.97 0.01
STX Seagate Technology 69 16.71 -1.65
RDWR Radware Limited 70 15.30 -0.24
PRX Par Pharmaceutical Cos 71 26.32 0.40
CREE Cree Inc 72 55.91 -2.47
EJ E-House Holdings Ltd Ads 73 16.04 0.09
BAP Credicorp Ltd 74 74.63 0.16
ENI Enersis S A Ads 75 22.96 0.43
MR Mindray Medical Intl Ads 76 34.87 -0.33
CTXS Citrix Systems Inc 77 41.55 -1.16
KCI Kinetic Concepts Inc 78 41.29 0.25
NMM Navios Maritime Partners 79 16.46 -0.02
ASH Ashland Inc 80 40.41 -1.51
TAM T A M Sa Ads 81 18.24 -0.97
MEND Micrus Endovascular Corp 82 16.78 0.16
SNS Steak N Shake Company 83 321.24 4.21
VCI Valassis Communications 84 20.93 0.40
DTG Dollar Thrifty Automotve 85 24.36 -1.32
V Visa Inc Cl A 86 82.03 -0.62
IMA Inverness Med Innovatns 87 40.37 -0.57
BIG Big Lots Inc 88 28.41 -0.65
FCFS First Cash Financial Svs 89 22.83 0.07
VAR Varian Medical Systems 90 50.29 0.52
NIHD N I I Holdings Inc 91 32.74 -0.19
INFY Infosys Technologies Ads 92 51.91 -0.43
AMMD American Med Systms Hldg 93 19.20 -0.09
CI Cigna Corp 94 33.77 -0.72
NUS Nu Skin Enterprise Cl A 95 23.24 -0.40
RNOW Rightnow Technologies 96 15.99 -0.10
CRM Salesforce.Com Inc 97 63.55 -0.61
TJX T J X Cos Inc 98 38.01 -0.22
IBN Icici Bank Ltd Adr 99 35.28 1.81
TUP Tupperware Brands Corp 100 42.46 -0.04
Hi Madmax,
Thanks for the IBD 100 list....
Saleem
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