Wednesday, September 28, 2011

Indices closed Down 1.61% to 2.17%.....

Indices closed near lows of the day on "no news".....

Media (CNBC) explanation for this slump was German vote...BUT DAX closed Down only .89% while US indices slumped as much as 2.17%.....explanation for today's slump is "bizarre" as far as i am concerned.

HFT has total control of this market & they can increase the NOISE level on any non-issue through CNBC......

S&P 500 closed @ 1151.06 with RSI @ 43.89......S&P went UP from 1114 to 1195 for a gain of 81 points or 7.27%.....then from 1195 to 1151 DOWN 44 points or 3.7%...so HFT is driving this market @ will..all this in FOUR trading days......while news flow has not changed @ all??????

Internals of this market were :

Down volume led by 26.04 to 1 in NYSE & 15.08 to 1 in Nasdaq

Declining stocks led by 4.78 to 1 in NYSE & 5.30 to 1 in Nasdaq

As you can clearly see that Down volume was pushed hard by HFT while declining ratio is relatively tame......it has HFT written all over it.......

I bought LULU @ $53.34

I analyzed RSI for my stocks after close & it is very interesting :

AMZN 57.73

BIDU 33.36

LULU 44.21

MU 43.48

RIMM 33.33

AUY 35.16

PMCS 48.98

Who could have guessed that RSI of BIDU & RIMM could be same? OR MU or LULU could be so close ?...all i can say that valuation have gone totally out of sync..

AH Futures UP

AH Asian Markets Down

AH Oil & Gold Down

BLOG does NOT give buy or sell.

Saleem

22 comments:

stocktrader_1996 said...

Hey Saleem,

The high betas were weak right from the start even as the market was positive. The fear of the China/global slowdown was the cause of the decline in my opinion with the Chinese market hitting a 52-wk low last night.

I believe the German vote is a done deal. I'm less worried about Europe's continuing problems than I am about a Chinese hard landing now. It is still not my base case, but it nags at me given the housing numbers we see there. Also, the Chinese government is still not willing to ease up on inflation fighting--hopefully this latest round of lower commodity prices can help all the devastated emerging markets get more comfortable with the inflation picture.

Stocktrader

Stocks100 said...

Hi Stocktrader,

HFT daily focus on "whatever" is the cause of market malaise....

IF we are making 52 wk lows in many commodities.....then fight for inflation is OVER...HFT knows that also...BUT that does NOT suit HFT agenda ?

China & India have raised interest rates for over 12 months straight to cool down their economy..housing / Autos included ?

All known to HFT also?

Saleem

stocktrader_1996 said...

Hey Saleem,

I'll be using this morning pop to do some selling. I feel like the market really wants to take down the growth-sensitive stocks still. I'd probably look to rebuy late tomorrow afternoon in those stocks I do sell.

Staying alive...

Stocktrader

Stocks100 said...

Hi Stocktrader,

My suggestion is to hold any selling until LATE MONDAY.....

Saleem

c said...

S

The market is looking strong today

Hoping for some bounce in BIDU and GOLD!

My apple is rising-$6 already up

I am NOT so sure that EUPOPE is a done deal
It keeps raising its ugly head
the oils are strong again.
best to all

Stocks100 said...

Hi C,

I am sure that Europe IS a done deal as of last Sunday as per G20 meeting..BUT CNBC plays HFT nonsense to the hilt through Cramer.....just listen to what he said last night ?

Saleem

c said...

S

HFT

they are the scourge of the trading world!! I still think we could have another shoe to fall in Europe

J Cramer is very negative on market

Says play cash and buy high divi sticks

all IMHO.
thanks

Michael said...

Saleem,

BIDU got attacked by HFT again. I think any stock nowadays is vulnerable to the attack. HFT can take down any stock any time.

Michael

Stocks100 said...

Hi Michael,

Most stocks in my watch list is not behaving well @ all...

BIDU is near major support of $114 to $118..let us see how it goes today...SINA is weak also?

Saleem

c said...

S

LULU

is awful
DROP

regards
C

c said...

S

it is awful what happened to BIDU and AMZN

the HFT are the only ones making $$$$



C

Stocks100 said...

Hi C,

Very difficult to understand the game being played with good stocks.

Saleem

c said...

S
RIMM was talked about on CNBC
what awful news---RIMM is dropping in price...
they said Sell!!!
RIMMs tablet is discontinued and price cut in 1/2 to clear inventory. Yeks

THey also said that tech was dead for a while and China was in deep trouble--hmmm.

C

Up said...

Looks like Bidu's big support became big resistance, another major support is around 80. Hope i am wrong and this stock go back up soon

Michael said...

Saleem,

What's your suggestion with BIDU? Should we hold, double down, or take a loss? Thanks.

Michael

Stocks100 said...

Hi Michael,

I have sold BIDU, AMZN & PMCS.

When Major support cannot hold..then it is a sell.

Saleem

Michael said...

Saleem,

I will take a loss on BIDU as well. How's about MU? Will that stock be good to double down? Thanks.

Michael

Stocks100 said...

Hi Michael,

MU is reporting tonight...it is NOT a strong stock....it is a "speculative play" as expectations are very low.

Saleem

Up said...

I bought it at 134 and sold it at 113 when it bounce back from low of day. Talks on street saying China is slowing. Just look at SOHU SINA and BIDU, they all bleed blood

Stocks100 said...

Hi Up,

Chinese stocks are in serious pullback...staying out is a good idea.

Saleem

Up said...

Hi, Stocks100

Thanks for your input, by the way, look what happen to RIMM when they report. SO i think MU is a big gamble

Stocks100 said...

Hi Up,

Yes MU is a "speculative play" & a small position for me....

Saleem