All Indices breached their low from yesterday. Sharp weakness in indices can be attributed to "hysteria" about imminent worsening of Japanese nuclear situation. EU & US officials speculated more than what was warranted. Japanese officials do not waste too much time before media which creates a news vacuum leading to speculative comments we heard today.
News from Japan tonight is highly encouraging as their seven military helicopters is able to drop seawater into reactor without any problem. They are also finishing new power line to reactors to restore cooling systems & ease the crisis.
Back to markets....
@ the close we have the following stat after 1 month of correction. This included Egypt, Libya & now Japan crisis :
Dow Down 6.75%
S&P 500 Down 7.07%
Nasdaq Down 8.34%
Today's selling was a sign of "capitulation" as per following internals :
Down volume led by 10.19 to 1 in NYSE & 7.24 to 1 in Nasdaq
Declining stocks led by 3.33 to 1 in NYSE & 2.61 to 1 in Nasdaq
New 52 wk low were in the lead 39 in NYSE & 63 in Nasdaq
About those famous RSI @ close :
S&P 500 33.50
Dow 32.46
Nasdaq 32.28
All of the above stat is a mark of "extremely oversold" conditions......
AH Futures UP
AH Asian Markets Down
AH Oil & Gold Down
BLOG does NOT give buy or sell.
Saleem
3 comments:
SALEEM
great analysis
thanks for your calming thoughts
do ya think we are OK now??
I was about to pull trigger on all that I own tll I read your blog--thanks
The markets are up HUGE my APPLE up $5
POT, SLW RIMM, LINE and BIDU which I bought at $119.60 are all GREEN
MY question is this a false bull here or are we experiencing a head fake??
I appreciate all fellow bloggers and best to all
Hi C,
Thanks for your feedback.
There were thousands of retailers who sold yesterday in hysteria created by CNBC ?
Remember Katrina ? just one tragedy & how badly it was managed ?
Japan had 9.0 earthquake, then Tsunami & nuclear problem in 6 reactor......i think they are doing better than any country could have....
YES...market will rally because it is oversold for now.....
I am glad you kept your position.
Saleem
also, check BP. remember how bad things got for them after they rocked the market?
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