-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
12 comments:
thank you very much for your analysis, your time and effort
Hi Djovanny,
Appreciated your feedback.
Trying to see historical perspective.
Saleem
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
Hi C,
Good luck with your portfolio.
Saleem
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;;
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
Hi C,
Nice to be UP 4%+ for a change.
Dead cat or Alive cat bounce..only time will tell.
Saleem
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
Hi Up,
YES, you can trade in a strong market daily.
Good Luck !!!!
Saleem
Saleem
what did you sell?
I sold MMM and bought MCD!
TOT is attractive as is MRK!
Best to all
Hi C,
I am NOT selling anything ....i bought AUY.....
Saleem
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...
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