S&P 500 has closed @ a level of 1099.23 which all of us had hoped will not come.
Now that famous 1101.54 is gone, where do we go from here ?
Carter Worth who was also humbled today by this close, has few data point on S&P 500:
-First IF we close above 1101.54 on Tuesday, then we are OK...
-S&P 500 can close @ 1090 on Tuesday..still we are OK..
-BUT IF we close below 1090 then we are looking @ 1065
I feel, IF we do not close ABOVE 1101.54 on Tuesday, then we are looking @ support in 1050 area......
Internals of this market were :
Down Volume led by 25.85 to 1 in NYSE & 15.98 to 1 in Nasdaq
Declining Stocks led by 9.48 to 1 in NYSE & 12.35 to 1 in Nasdaq
New 52 wk low were 824 in NYSE & 611 in Nasdaq
VIX closed @ 45.45 UP 5.8%
Oil closed @ $77.61
Gold closed @ $1657.70
The obvious question IS, how to position in this market ?
-Currently good news has no positive action @ all ?
-Greece lingers ON ?
-High profile names were acting WEAK today ?
-Volume was HIGH in today's selling ?
All of this has prompted me to stay @ 24.4% exposure for three day's now, which has saved me lot of grief of evaporating equity......
This is NOT the time to be HIGH on any stock, no matter how much you love them. Stocks have only ONE purpose, it is to make you money NOT lose money ?
AH Futures Down
AH Asian Markets Down
AH Oil Down
AH Gold UP
BLOG does NOT give buy or sell.
Saleem
12 comments:
SALEEM
Good morning
Looking good for APPLE
Up a Buck pre market
All the buzz about the phone is just awesome
Cramer said buy deep in money call or buy the stock
I would have thought that GOLD would be up today--A flight to security--Not happening
TOT is also greenLULU is a bargain here
C
Hi C,
AAPL is showing "relative strength today"
Many stocks are @ brgain level including LULU.
With Oil down..TOT up ?.....that is relative strength.
Gold is dead for now based on lousy TAPE action.
Saleem
Saleem,
Bought BIDU at 103.5, LUU at 42.36, clf at 47.8. I may sell tomorrow. However, I could not resist the bargain. Let see how it closes.
Michael
Hi Michael,
Looks like we may have found support in this market...
Good luck with your excellent bargain hunting.
Saleem
Hi Stocktrader,
What will be the trend of the market at close today? Thanks.
Michael
MICHAEL
Hello
Good luck on yhour buys
Look at FFIV, LULU, TOT and AAPL
If BIDU goes any higher I would take some profit
Best to all Turn around Tuesday is here, IMHO
Saleem,
The market bounced off the bottom from deeply oversold condition. What do you think of this bounce? Is that bounce too weak to confirm a bottom? Thanks for your comment.
Michael
Hi C,
I almost bought FFIV before the open, but I think the others were more attractive. I did not know, FFIV received a push from upgrade this morning.
BIDU is okay, but not too healthy yet. I will sell all tomorrow. I don't like Thursday (ECB meeting) and Friday (OE).
Michael
Hi Michael,
Based on internals, Nasdaq has found bottom.....
All momentum stocks should be OK from hereon.
Saleem
Hey Michael,
I feel like most people were trapped by how fast things deteriorated in the last 72 hours, so I suspect residual selling at close and especially so if we can't decisively break this 1101 level back to the upside. There is a scenario I'm considering where all today's day-traders sell also after the failed breakout, and this creates a bigger downdraft at close.
**All that said, there are a lot of shorts in this market, so stocks could really rocket up also.**
I am extremely nervous being short still, but I feel like soooo many people are still "looking to buy", that it can't be that easy. This perception still leads me to a bearish thesis, but bear market rallies are fierce and rip off the heads of the shorts.
I am covering at close no matter what happens because I can't be short ahead of tomorrow's ADP number. For my personal portfolio, I hope I'm not covering another 2% higher because an up move could take us to S&P 1120 easily. If we do close >150 pts down, I'll be flipping into some longs along with just covering.
Hopefully some of this is helpful :).
Stocktrader
Hi Saleem,
Thanks for your thought. I am still very nervous about this market. It can take everything down without any news. However, my exposure has increased to 70%. I am too brave and will reduce the exposure by tomorrow if nothing keeps this market continuing up.
Michael
Hi Stocktrader,
Thanks for your thought and detail explanation of the market. I am nervous on the long side too. So I just stepped in a bit at a time, but I will withdraw quickly if things are not going the way as expected. Your insight information is really help. I appreciate it.
Michael
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