Sunday, November 27, 2011

Markets are in deep oversold conditions, technical bounce imminent.....

-Indices are in deep oversold conditions with RSI @ 34.39 in Nasdaq.

-Bearish headlines are all over in the media

-Most traders, institutions, hedge funds are "under invested"

-Short interest are as high as they were in March of 09

The above is a "recipe" for a major bounce & could result in the biggest short squeeze ever seen.

Retail consumers are totally "unfazed" by media & had the biggest Black Friday sales in history, retail sales are UP a record breaking 6.6%...

Most technicians believe that there is strong support around 1100 in S&P 500, last close @ 1158.67

Europe certainly has "spooked" major allocation in stocks. European debt crisis & US political lack of will to do anything for the good of the country, has eroded investor confidence to the lowest level which i have observed.

No wonder that we are languishing barely above 1100, this is the same level where we were @ 10 yrs ago.........no wonder many retail investors have given up......as they can clearly see that they have lost money in last 10 years of investing / contributing to IRA / 401 K......

BUT some of us have nothing better to do, than be fixated in this market....

As I continue to believe that, RSI in 34 area is a major trading point based on history.......

IF you can stomach European 72 hour get together & no real progress....then currently, this market can make some dough......

I continue to add, in this downward gyrating market with the believe that those who are positioned "in the market" will come out ahead, EVENTUALLY......

Here is my $ weighting as of Friday :

PCLN 25.17%

RVBD 19.76%

BIDU 15.71%

CLF 14.11%

CNQ 8.72%

LVS 8.71%

LULU 7.82%

Please make sure that you are monitoring your portfolio closely & making necessary changes.

TAPE has been showing some relative strength, hopefully you are trading with that FOCUS.

Good luck with your OWN analysis & comfort level.

BLOG does NOT give buy or sell.

PS..I firmly believe that "new stimulus" is coming to US,Canada,China & Europe..which will give big boost to this sick economy & market.

Saleem
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12 comments:

  1. DjovannyNovember 27, 2011 at 12:58 PM

    thank you very much for your analysis, your time and effort

    ReplyDelete
  2. Stocks100November 27, 2011 at 1:02 PM

    Hi Djovanny,

    Appreciated your feedback.

    Trying to see historical perspective.

    Saleem

    ReplyDelete
  3. cNovember 28, 2011 at 5:14 AM

    S

    The market is looking like a turn UP..... Yes!!!

    APPLE up pre market $10

    CLF is up $3..

    I am looking for this correction to hold in an upswing
    If no more Europe bomb shells we may get a wonderful Christmas

    best to all

    ReplyDelete
  4. Stocks100November 28, 2011 at 5:25 AM

    Hi C,

    Good luck with your portfolio.

    Saleem

    ReplyDelete
  5. cNovember 28, 2011 at 6:45 AM

    S

    The market is kind to you looks like all your positions are GOOD!!

    CNBC claims this is a dead cat bounce market.

    Thoughts
    Cramer says run from the banks and buy BMY and APPLE
    Also tanker rates are up!! Great for FRO and my own GNK.

    I am trying to sell my MMM as it has been awful performer for me.

    Best to a;;

    ReplyDelete
  6. UpNovember 28, 2011 at 6:51 AM

    Hi C

    During today's open, I sold out my weak holdings and plan on buying stronger stock after this morning's correction. I was panning to load up calls during today's session, but guess I am a little late now. To answer your question regarding AAPL, I didn't touch it since the day I post my view about 2 weeks ago

    ReplyDelete
  7. Stocks100November 28, 2011 at 7:05 AM

    Hi C,

    Nice to be UP 4%+ for a change.

    Dead cat or Alive cat bounce..only time will tell.

    Saleem

    ReplyDelete
  8. UpNovember 28, 2011 at 7:09 AM

    Hi Saleem

    If stocks keep going up without a rest today, I will be closed most of my positions and wait for tomorrows correction before jump back in

    ReplyDelete
  9. Stocks100November 28, 2011 at 7:16 AM

    Hi Up,

    YES, you can trade in a strong market daily.

    Good Luck !!!!

    Saleem

    ReplyDelete
  10. cNovember 28, 2011 at 7:17 AM

    Saleem

    what did you sell?

    I sold MMM and bought MCD!
    TOT is attractive as is MRK!

    Best to all

    ReplyDelete
  11. Stocks100November 28, 2011 at 7:30 AM

    Hi C,

    I am NOT selling anything ....i bought AUY.....

    Saleem

    ReplyDelete
  12. cNovember 28, 2011 at 8:04 AM

    S

    AUY is an excellent play here

    I am also chasing some MRK at $34....

    CLF is green for me at $64.20.

    UP

    APPLE is on track for record sales of iPad and iPhone
    Over weekend broke all time highs for sales

    Any --who -- I still have my $355 call on apple...

    ReplyDelete