Market has a way of telling the whole world that politicians are messing up US economy "big time"
There is NO focus on "job creation yet"......it was all a charade to get re-elected.....
Markets do not fall apart for no reason..
Internals of the market were as follows :
Down volume led by 16.57 to 1 in NYSE & 18.12 to 1 in Nasdaq
Declining stocks led by 3.69 to 1 in NYSE & 4.99 to 1 in Nasdaq
New 52 wk low were 165 in NYSE & 132 in Nasdaq
VIX UP 4.78% @ 24.79
As you know, that the above selling was on high volume......
All Indices are well below 200 DMA......
RSI in S&P 500 is @ 31.25..which is deep oversold condition....
This daily selling is the worst since financial meltdown of 2008......
SO..the big question is where is the support in this market...
Most pundits are looking @ 1249.05 as support......i am not sure this is where the support is...I have a strong feeling that strong support maybe in 1219 area...this is the level of March 2010....
Market is very clear about the economic mess & is not impressed with inaction.
No job creation means no economic growth......end of the story......
SO..IF we get oversold bounce it may not last more than two days.....
My recommendation is to sell any bounce which we may get until sometime.....or stay with less exposure @ this stage. I am @ 60% exposure.
I have not sold any shares today or made any adjustment, here is my $ weighting:
GG 36.67%
FFIV 23.93%
LULU 23.60%
RVBD 15.80%
It is important to hold Gold until all this mess is sorted out......
Do not be surprised @ US debt downgrade, it is inevitable.....
AH Futures Down
AH Asian markets down
AH Oil Down
AH Gold & Silver UP
BLOG does NOT give buy or sell.
Saleem
6 comments:
Saleem
Phew
what a sell off--we got a mess on our hands
I will sit this out and take profit is we get a bounce.
25% cash now
Best to all
Hi C,
IT AIN'T OVER...till its over....
Jimmy the cramer told everyone to buy everything except FFIV...guess what happened to everything & how FFIV is doing ???
Saleem
Saleem
you are correct
Maybe you need a show
:) Last night he screamed buy his big five stocks
Ha
thanks for the reply
C
Hi C,
I have a show..it is "stocks100"
Where 400 audience come to watch.....
Not bad for me !!!!
Saleem
Saleem,
If you have 400 audience, who know the value of your analysis, it will be a lot better than million audience, who follow the clown.
I sold LULU at 60 this morning to reserve some cash. I am at 50% cash now and ready for the rebound. Thanks for the warning. I feel more confident in this sell off, since I got out on time last Monday with the help of your Sunday blog.
Michael
Hi Michael,
Thanks for your comment, much appreciated.
Market is in total disarray, i have no idea where the support could be......
I am @ 42% exposure now.....
It is important to be @ minimum exposure until dust settles...
Saleem
Post a Comment