Indices battled many European demons & closed UP.
Indices were UP.84% to 1.20%, much to the surprise of many pundits who keep shorting @ their "imaginary technical resistance"
Internals of the market were as follows :
UP volume led by 4.62to 1 in NYSE & 3.88 in Nasdaq
Advancing stocks led by 2.90 to 1 in NYSE & 2.63 in Nasdaq
New 52 wk highs were leading today, 69 in NYSE & 48 in Nasdaq
VIX tumbled 7.97% to close @ 27.47...today was the-steepest dive in a mild UP day, giving a strong buy signal in equity...
Oil closed @ $96.80, Jimmy the Cramer does not know why it is UP, what will he say @ $100
Gold closed @ $1799.20
AH ER were greeted as follows :
ATVI Down 2.08%
ADBE Down 9.04%
SINA Down 3.67%
AH futures Down
AH Asian Markets UP
AH Oil UP
AH Gold Down
China is reporting moderating inflation, CPI came in @ 5.5% vs 6.1% in previous month. PPI came in @ 5% vs 6.5% in previous month. Not a good news for Gold ?
BLOG does NOT give buy or sell.
Saleem
10 comments:
Hey Saleem,
As you know I made a nice profit on some UGL (2x bull gold) back during August period and then didn't choose to re-enter any gold positions until just recently.
The reason I am now fairly bullish on gold is the fact that the new ECB chief seems willing to lower rates, and may end up at 0-1% eventually like the US. When major currencies have negative real interest rates, gold tends to thrive. Additionally, any quantitative easing by the ECB to purchase periphery country bonds could have the same positive effect on gold as the currency is further devalued.
I think we may see a lot of "smart" people short gold as the crisis phase of Europe abates thinking that gold represents the "fear" trade (of which there is an element of that of course), but I think they could potentially be crushed as the world becomes awash in excess liquidity from central banks' currently ultra-easy policies and then seeks value-holding assets to park even a small portion of this liquidity.
Although I do recognize the potential for short-term pressure in the gold market, I will continue to hold my AUY as a market rally could keep the gold stocks outperforming the gold metal, and then any development of the easy-money thesis could really create a fast upturn and catch traders on the wrong side.
Just presenting a contrary gold opinion :).
Stocktrader
Hi Stocktrader,
As you may not know, i am a serious collector of Gold & silver coins......issued by US & Canadian Mint....
We all have to recognize "potential short term" negatives......
Gold has been a verydifficult sommodity to trade...even all knowing Dennis Gartman changes his opinion from buy to sell every 10 days.....
Most of the catalysts for gold are known for almost a year..how much of that is priced in...nobody knows...
That is why i jump IN & OUT in gold stocks....
There are well researched thesis on both side of the "gold coin"...
Good luck with your strategy with gold & non-gold stocks.
Saleem
Hi Saleem,
Thank you for the comments. I am not really a gold expert so I appreciate the measured analysis from your seasoned perspective.
My portfolio was up over 2% on the down Friday, but I've given almost half that back on these two up days. I'm trying to figure out if this is just a one-time anomaly or not, so I'm really investigating my stocks and the associated theses thoroughly.
Thanks again for the many thoughts throughout today :).
Stocktrader
Hi Stocktrader,
It is good to constantly evaluate performance of your entire portfolio & individual stocks.
Markets are so unpredictable, that it is almost impossible to anticipate moves.
Looks like another "rough day @ the office"
Saleem
Morning to you SALEEM
Looking like a RED day
GOSH Pre - market way down --head for the woods
I did not see this coming at all
J Cramer siad 2 things last night
The market mover make no sense and in his 31 years
he has never seen this action,
Two he said APPLE with S Jobs gone Apple is just a
stock! He buy Google instead.... He is something
Apple is down $8 in pe market
ANy thoughts for today to buy or sell
Have a blessed day
Good luck
Hi C,
Not a good day @ all.
Jimmy the Cramer changes opinion once technicals are not so hot...what else is new ?
Saleem
Hey Saleem,
Today will be a real test for a lot of stocks. I like days like this (other than the drop!) because it helps me determine which stocks are truly wanted.
Stocktrader
Hello
Stocktrader
How is it going--red market.....
Look at Ford
THe posted good news on earnings vs GM which says bad news of Europe sales and over all Might be a catalyst for a Ford move
I was thinking of buying some ford here!
thoughts
Hi Stocktrader,
TAPE reading is critical for analyzing strength & weakness.
Helps in buy & sell decision.
Saleem
Hey c,
F is my favorite US-listed car maker. I'm not really an autos guy, but F does look pretty good here. I like how their debt continues to get upgraded, and they have lots of room for emerging market share gains, especially with Toyota's current production glitches. Also, the chart looks ok despite the recent weakness.
Good luck on your decision! :)
Stocktrader
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