Friday, April 1, 2011

Indices closed UP .31% to .50%...NICE !!!!

All indices closed green. Gains were kept in check by weekly Option Expiry.

Dow did go through previous high with ease.

S&P 500 & Nasdaq are within striking distance of taking old highs.

Internals were Mixed.

New 52 wk highs are in overdrive, the best i have seen for months, 374 in NYSE & 238 in Nasdaq.

RSI in indices are as follows @ close :

S&P 500 60.23

Nasdaq 60.25

Dow 62.04

Based on the direction of RSI, we are all set to go HIGHER.

Economic picture is getting better in US, which is the largest economy.

Job creation is picking UP & unemployment is coming down. Hedge Funds & Institutions will increase their exposure to Equity going forward.

Japan crisis is creating headache for many technology companies. Today cloud stocks took it on the chin. RVBD was pummelled 8.15% on 88% more volume. FFIV down 8.78% on triple volume. It is tough to call a bottom on high volume selling as HF are getting out. Looks like today MAY be a "capitulation" day.

In my portfolio :

Sold POT

Added entire position in SOL @ $10.05

Bought BIDU @ $138.40

Portfolio is BIDU,JKS,SOL,RVBD,SLW.....

Here is my portfolio weighting & RSI @ close :

RVBD 33.11% 35.49

JKS 26.32% 50.69

BIDU 18.62% 73.84

SLW 12.31% 54.82

SOL 9.64% 54.12

BIDU is rated for "breakout" @ $140.13 with a target of $151.40 by www.stockconsultant.com.

This is a difficult market for value investor as value gets cheaper & cheaper.Momentum stocks are back in vogue & making new highs.Some of the notable ones are :

BIDU
CMG
PCLN
LULU

I am trying to mix value & momentum , hoping it will work out better .

Oil closed @ $107.94, a new high in many years. Oil is giving clear signal that worldwide economy is in "growth mode"

VIX closed down 1.47% @ 17.48...means fear is low...which bodes well for further rally.

Good luck with your OWN homework. Idea is to regroup & make money.

Next post Monday around 1 PM.

BLOG does NOT give buy or sell.

Saleem

4 comments:

c said...

S
Happy weekend to you

I was surprised to see POT sold---Wow

But BIDU is an awesome pick
If I had held it a while back from $110 -- well it is history now...... is two months it move 20 points

that beets all!!!
In your humble opinion , did POT lose it MOMO --should I sell my shares?

Best to all
By the way EVEP, ETN, KMP have been rocking.....

Stocks100 said...

Hi C,

POT was sold for TWO reasons..

First, I had a profit.

Second BIDU moved Down relative to POT....thus a good swap.

Nothing wrong with POT @ all.

It is extremely difficult to predict what any stock will do as technicals are hard to predict..look @ RVBD it was close to 50 DMA & it is now $5+ below.

My problem is i watch technicals too closely..BIDU has strong CMF while POT has Negative CMF....but it is one of the many indicator going for BIDU......

Look @ LULU..sold too early..it keeps going..i thought $4+ profit was good enough in one day......

I am going to mix more momo stocks in my trading.

For you POT & many stocks are doing well...i have RVBD...stuck in mud.

Saleem

c said...

Saleem

Question
what is a CMF
I like to follow technicals and subscribe to stockcharts!

But ai learn every day... I was trying to under stand deep in the money calls as J Cramer loves em. I am unsure of them however and uncomfortable too--thoughts?

It is 45% and a slight drizzle in DC.

thanks

Stocks100 said...

Hi C,

CMF is Chaikin Money Flow which is indicated in every chart of stockcharts under gallery view.

I only use their free charts as it is very comprehensive for my needs.

When CMF is GREEN..it means money is coming in...when it is RED it means there is more selling.....

Check CMF of any stock which is making new 52 wk high.....

Where i live we are hitting 42 as high of the day low will be 29....

I like spring & Fall as my favourite.

Saleem