S&P 500 has tested its support four times since 2nd week of August 2011....
1101.54...1121.09...1136.07....1114.22...currently we sit @ 1136.43
RSI in S&P 500 is 39.72
Market has been trying to discount Europe, Asia & US
slowdown...that is why it is stuck in a very narrow range since August...
Anytime RSI is in 30+++ range, it is PRUDENT to start buying.
Once we have "real resolution" of some issues, market will go UP in a big hurry.
It is important NOT to focus on "absolute lowest prices" we all miss it 99% of the time.....
Markets are down for almost five straight months, which means "major capitulation" is going on.
Slowing economy & Libyan oil flow is taking a toll in Oil prices...closed @ $79.85
Gold prices have lost almost $300 per oz, as margin calls took its toll in bullion pullback. Closed @ $1639.80
Silver closed @ $30.10..saw a drop of 17.7% in one day on Friday ?
Now as to targets on the UP move, here are few to keep in mind for S&P 500 :
1213.75 then 1220.39 then 1230.71...then we will evaluate....
I am expecting a minimum gain in S&P 500 of 77.32 points or +6.8% from Friday's close....
Many stocks have come down to "serious bargain levels"...a diversified approach is highly recommended .
Here are RSI numbers for popular stocks as of Friday :
AAPL 60.43
AMZN 54.78
*PMCS 50.34
LULU 49.74
PCLN 48.09
GOOG 44.09
JCP 42.47
APKT 41.77
*AUY 35.10
GG 34.15
MGA 34.11
*BIDU 34.16
*RIMM 28.08
POT 24.50
TSL 23.51
JKS 18.56
* Denotes my portfolio.
As you can clearly see that some stocks are "screaming buys"
NOW...everyone wants to know....IF we can go
LOWER...YES...that is ALWAYS a probability....BUT we MAY come back UP same day in a V pattern......
Serious money is always made, when you buy when negativity is @ extreme. Current market environment is more than "extremely negative"
Good luck with your OWN analysis & comfort level.
BLOG does NOT give buy or sell.
Saleem
8 comments:
Hey Saleem,
There's lots of event risk this week with votes in Europe: Greece-Tuesday, Finland-Wednesday, and Germany-Thursday. Given this, I'm expecting Monday to be the weakest day (if no European intervention), but better days thereafter as votes come and go as planned.
It should be an interesting week...
Stocktrader
Hi Stocktrader,
Votes are generally taken in expectations of passage...enough negatives are known for a NO vote.
RSI is telling me that we should be OK.....
Saleem
S
Good ananlysis
thank You--stock GURU
All I want for Xmass is a DOW 12,500 or APPLE at
$ 500
Lest us see : Europe is so selfish--dunno if America
has any respect left there from what I hear on the news.
Timothy Geithner seems a little lost here, perhaps ineffective --both in Europe and America!
Just my .02cents
best to all --hope for best
Hey Saleem,
I'm also fully bullish as you know, and by "weakest" on Monday, maybe it's only up 50 pts? :)
Regardless, I'm just mentally preparing myself for tomorrow as the potentially worst day...
Stocktrader
Hi C,
Dont WORRY be HAPPY.....
Geithner is just an individual trying to do a JOB....world economics is much BIGGER than him.
Thanks for your feedback !!!!
Saleem
Hi Stocktrader,
I know you are bullish with major exposure in this market.
Taurus is "extremely OPTIMISTIC" which i am......but it IS catchy.
Futures AGREES with my OPTIMISM ?
Saleem
S
Let me know what you do with BIDU and AUY
Gold is making a bit of a come back!
BIDU I can not figure out at all
APPLE is recovering from the iPad drop in sales? That has to be a 'bull" sound bite.
Now down $3 bucks
The surprise was CLX may be a good buy on the drop in price
My IVR is green for once it has not caught a break for two months
C
HI C,
I am staying with BIDU (long term)& AUY (short term)
SO..BIDU is a HOLD & AUY is trade.
YES..AAPL came back !!!!
Saleem
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