Tuesday, May 25, 2010

2% slump in Indices.....

Indices are slumping 2% after being down much more......

Reason given is Europe BUT Euro has NOT made a fresh low yet.....???

VIX only up 5%....to 40.27 went as high as 43.74..BUT made NO new high....???

The above stat are telling me that "machines are in control" us mortals are NOT buying the PANIC.....

S&P 500 @ low of 1040.78 was down 14.68% from highs of 2010......RSI was @ 29.69....made a "triple bottom"....

I personally believe that machines are having their "last hurrah" on the downside for this TAPE........will NOT be surprised @ a "major REVERSAL" today.....Risk/reward ratio is very compelling......stock selection is the key !!!!

Gold UP $4.20

Oil Down $1.92

Canadian $ Down 1.61 cents to 92.65

Portfolio is CIEN,CRUS,JDSU,SNDK.......

Most stocks are down except inverse ETF & Vix related.

BLOG does NOT give buy or sell.

Saleem

9 comments:

madmax said...

Saleem
Market is still jittery

I have a low ball order for some AAPL @ $138 so far no fill

I missed a buy on GS up $3 bucks from my buy point

I am NOT oito shippers now as the tanker market is saturated with ships and hte shippers have got to considilated!
Best to all

Stocks100 said...

Hi Madmax,

IF you want to buy AAPL....it has to be @ ask..or you will miss buying opportunity of a lifetime...

My 2 cents....

Saleem

IronKen said...

Saleem
I agree that computers are controlling the market, but in addition, I think GS, Hedge Funds, etc, manipulate the Market, in making individual investors think that the market is trending in one direction, but then they will then reverse the trend (usually during the last trading hour).
For now, I'm on the sidelines.
Ken

Stocks100 said...

Hi Ken,

Thanks for your take on the role machines/hedge funds.....they are in concert to optimize their profit..works like a charm....

We should be doing opposite @ appropriate levels which currently is staring @ us.....

Saleem

Michael said...

Saleem,

I just started a position with CRUS @ $12.55. "Buy on the weakness" is my slogan now.

Michael

Stocks100 said...

Hi Michael,

Buying on weakness PLUS knowing the fundamental is the KEY in this CRAZY market.

Good luck with CRUS.

Saleem

Michael said...

Saleem,

Thanks for the correction. I 100% agree with you. Buy on weakness with a good fundamental company is a strategy in this controlled market.

Michael

standardshigh said...

Hi Saleem,

Interesting market today...you can see a pattern develop much like a non-thinking machine would do. It only takes one event to change the direction of the computer logic. Like flipping a switch. One big sell order and the switch is flipped. One big buy order can change it back. This has little to due with investing and more about skinning the other guy. SEC still asleep.

Best Regards

Stocks100 said...

Hi Standards,

Computer models could NOT squeeze any more $ from retail...so the model warned NO more real $ coming into kitty..

So the humans behind collecting billions....said TAKE it HIGHER..so we can suck retail back into buying here & strategize about taking those $ LATER.....


Cynical BUT could be more true than anything else.

Saleem