US Politicians of 2011 have degraded US economic rating to lowest level EVER.....AA+
All the hostility & incompetence is obvious.
IF these morons don't wake up fast, S&P is saying that another downgrade is coming.
There is a quick chance that Fitch & Moody's may join the downgrade also.
Whole world is disappointed that US politicians are of the lowest calibre, they do not care about resolving budget deficit. They want to keep all the pork project.
Middle East stock exchanges are open on Sunday, which is a working day.
They closed down about 2.5% ...@ open they were down 5%.+++....
As to the reaction in our HFT driven market, look for S&P 500 to test our low of 1168.09....there is a good chance that low may hold.... BUT if it is broken, then 1150 area is a good support.....
US market has been telegraphing serious issues in US economy, S&P downgrade may put a bottom to this vicious selling......
RSI in S&P 500 is 23.90......this itself is an oversold condition.
Gold is expected to make a new all time high on Monday.....BUT gold stocks tend to give up all gains when market is lower.....So GLD works & miners are so so....
I am expecting a V pattern in markets on Monday, HFT will be major buyers near lows.
When FEAR is OPTIMUM....market turns UP
RSI is giving a clear picture of a turn UP is imminent......
This market now is a daytraders dream.......
Upside resistance remains in 1260 area.....
It is NOT a buy & hold market....
Booking gain is highly recommended on a daily basis...
Swing trading is ideal, buy on Monday to sell on Tuesday should work.
Stay within your OWN comfort level. It is going to be rough ride from hereon.
BLOG does NOT give buy or sell.
Saleem
10 comments:
Hey Saleem,
I can't wait for an oversold bounce to reduce some stock exposure and add to gold :). The only true positive market catalyst I can envision would be the Chinese moving to a neutral/easing policy. Otherwise, we are only looking at moderating some highly negative conditions, i.e. oversold stocks and European debt concerns.
In regards to the GLD/miner discussion, I feel that the reason the miners had lagged prior was their input costs were rising also because of oil being up along with gold in a QE2-inspired weak dollar environment. Now I feel that oil is much weaker in this recession-pricing and theoretically these miners can actually outperform the GLD now? I'm still unsure any stock can survive a 10% additional market correction so your input would be appreciated--I'm looking at miners that have held their 50,200-DMAs like AUY & EGO.
Thanks!
Stocktrader
Hi Stocktrader,
IF US$ is weak then Gold & Oil goes UP...as they are priced in US$.
Gold may pull back after intial foray on Monday..so be careful with GLD & miners.
AUY & EGO has been among the-best in miners..so buying on weakness is a good idea..NOT when they are higher.
YES..it is a smart move to reduce exposure & trade few stocks.....
ONE thing i have learnt well..is take profit when its there or else lose it.....
When RSI is this low in low 20...there will be a "technical bounce"......after that who knows...
Saleem
S
looks liek the DOW futures are down 200 points
Not looking good for out open
Best to all
Hi C,
Futures are coming back....@ low point Dow was down 280 point..now 181......
Expect "buy the news" .....
Saleem
Hi C,
Sorry..low for Dow futures was Down 325.....
Saleem
Saleem
Gold seems like a safe haven
MCD is also a goodie to buy here....
APPPLE is so on sale today $364 per share
Oh please let me get some big bucks to buy some
I never thought we would see APPLE so cheep
best to all
It is incredible that the RSI on the S&P is at/below the height of fear in 2008--seems way overdone considering the comparison of the two crises.
Hi Stocktrader,
HFT can create major buying opportunity....
RSI @ 20.73 now......in SPX
Saleem
S
GG is sure swing today
been up and down like a YOYO
So far the market is very week
Gold seems to be the only green play today
Hi C,
GG is doing well in gold stocks...
BUT selling is accelerating....
Saleem
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