Tuesday, September 20, 2011

Indices reversed by closing near low of the day.....

This jittery market showed its weakness by reacting to rumour about Greece may not get another bailout.

Indices were in the range of +.07 to -.86

Internals were negative 2 to 1

New 52 wk lows were 75 in NYSE & 98 in Nasdaq

Fed is expected to further ease long term rates, BUT Republican leadership in a letter is pressuring Bernanke to do nothing. This is a blatant interference in the independence of Federal Reserve.....politics in US is going from bad to worse.....pressure tactics being applied where it is NEVER done in past ?

Fed statement will be released @ 2.15 PM......

Gold closed @ $1809.10

Oil closed @ $86.89

VIX @ 32.86

AH news were greeted as follows :

ORCL +3.28%

ADBE +8.04%

CMG -.65%

Jimmy the Cramer was dumping on CMG, but AH effect was negligible....

AH Futures UP

AH Asian Markets Mixed

AH Oil,Gold & Silver Down

BLOG does NOT give buy or sell.

Saleem

14 comments:

c said...

S


GOOD MORNING to you

How is your health

CMG wil make it higher J C is NOT always correct

APPLE up again I see some green
KGC is up too
AVNET was the chip that JC lover the best?

CHIPS Are very hot
INTC is up from $19 where aI sold it..
C

Stocks100 said...

Hi C,

Thursday @ 2.40 PM..i have to see my doctor for medication for my HYPERThyroid.

Nobody can tell IF any stock is too high...momentum can carry any stock including CMG....

His thesis that CMG had reversal yesterday...every stock did yesterday?

Most stocks are trading higher in pre-market.

Saleem

Michael said...

Saleem,

Got in CLF yesterday was a bad idea. It got killed this morning with another >5%.

Michael

Stocks100 said...

Hi Michael,

I do not follow CLF @ all.

Saleem

Michael said...

Stocktrader,

I know that you have CLF. Did you sell it or you still keep it? The chart is getting ugly. Thanks.

Michael

stocktrader_1996 said...

Hey Michael,

I started to think seriously at selling it yesterday near $72.50, but I decided it was too late by then. Granted today is worse than I expected, but I am keeping it because I think the bottom in commodities stocks is nearing--China's LEI came out very positive last night and their market rallied 2+% despite relative Asia weakness. The WLT and ANR news today reflect's weakness in met coal from the past and present, and I guess I'm optimistic about the future. Also, in both WLT and ANR's cases, the shortfall was somewhat due to production stoppages, and therefore CLF could be insulated from that aspect. Additionally, CLF is engaging in a share buyback program which could prove useful as the stock is dropping. CLF does not have the book value backstop like my ACI does, and truthfully it is one of the weaker fundamental stories in my portfolio, but at this point, I think things are close enough to a bottom that I don't want to sell (although I am prepared for a potential 300 pt down today).

Good luck.

Stocktrader

Michael said...

Stocktrader,

Thanks for the information and detail explanation of the news around CLF. I just got in yesterday at the bad time. It was one of my favorite swing stock, buy low sell high, and it worked really well in the past. However, this time, it dropped too fast, so I wonder if there is anything behind it. Thanks again.

Michael

c said...

S

MMM, DD and CAT are getting creamed

Yuk
AUY is up

C

Stocks100 said...

Hi C,

AUY should jump any minute now....

Saleem

c said...

S

APPLE upgraded by GS

New target $500

best to all

Stocks100 said...

Hi C,

Keep an eye on AAPL RSI.....

Saleem

c said...

S

WOW

FED announcement NOT gooder,

AP Economics Writer, On Wednesday September 21, 2011, 2:31 pm
WASHINGTON (AP) -- The Federal Reserve says it will sell $400 billion of its shorter-term securities to buy longer-term holdings, its latest effort to boost a weak economy.

The Fed's move to rebalance its $2.87 trillion portfolio could lower Treasury yields further. Ultimately, it might reduce rates on mortgages and other consumer and business loans.

Fed policymakers announced the move Wednesday after a two-day meeting. Three members dissented from the decision.

Many analysts have said the shift in the Fed's portfolio could provide modest help to the economy by reducing borrowing costs and perhaps raising stock prices. Others say it won't help and warn that the move could escalate inflation.

In June, the Fed completed a $600 billion bond-buying program that may have helped keep rates low.

Stocks fell immediately after the announcement. The yield on the 10-year Treasury note tumbled, and its price rose.

Michael said...

Stocktrader,

You were right on about the big drop after the announcement. Did you buy anything or just sit and wait?

Michael

stocktrader_1996 said...

Hey Michael,

I am waiting to see how we close, but my base case is continued selling into close. In that scenario, I'll maybe buy a few things right at close, but more likely tomorrow as I feel some longs are trapped still and may puke up the stocks if we gap down again (S&P 1160-1165 as my reentry if we get that far down).

If we mount a rally into the close, I'll likely rebuy at least my VMW (and potentially all my techs) for sympathy on RHT's earnings into close.

Stocktrader