Close today can be described as disappointing, there was "no earth shattering news" to account for this weakness. Retail sales came in slightly below expectations.
Technical picture of this market is also looking all mixed up @ today's close.
Dow is above 50 & 200 DMA....RSI 52.06
Nasdaq is below 50 & 200 DMA....RSI 47.18
S&P is below 200 DMA, but is above 50 DMA.......RSI 48.80
Even RSI numbers are all over......
One more day of negative close & we may have most indices showing technical weakness.
Internals of the market are as follows :
Down volume led by 4.58 to 1 in NYSE & 4.33 to 1 in Nasdaq
Declining stocks led by 2.49 to 1 in NYSE & 2.95 to 1 in Nasdaq
New 52 wk highs are leading in NYSE & new 52 wk lows are leading in Nasdaq
Generally, i dont see such an extent of mixed picture ?
VIX closed Down 1.01% @ 25.41, everybody has a theory for this divergence ?
Oil closed @ $100.14..a bullish picture
Gold closed @ $1663.10... a bearish picture
S&P 500 low today was 1219.43....this needs to hold, otherwise we go lower...Today's downdraft CAN be attributed to early "quad witching Option expiry" squaring off?
So far, two of my four "optimistic theory" has been knocked out. First neutral reaction to European agreement & now no Fed boost. I am left with last two "optimistic theory", first seasonal strength & under allocation by many. IF last two does not pan out, it will be WISE to sell in January & go away ?
In my portfolio :
Sold BIDU
Portfolio is CNQ,LVS,LULU,M,RIMM,RVBD,SNDK
RIMM reports AH on Thursday, every single analysts have lowered their opinion of RIMM & some are predicting $10 price target .......pessimism cannot be more pronounced.... with an earning power of almost $4 for next 12 months, it is a very compelling "speculation"...trading @ forward PE of 3.90..market cap of $8.11 billion......
AH Futures UP
AH Asian Markets Down
AH Oil & Gold Down.....Gold is down AH another $25.10 @ $1638.10..sign of deflation is in the air ?
BLOG does NOT give buy or sell.
Saleem
18 comments:
Are you planning on holding Rimm through earnings?
I saw your other comment on Rimm thanks.
SALEEM
I thought that I might mention that the Chemo that they gave me for Cancer has scrambled my brain a little..
So you must forgive me if I can not grasp complex ideas or remember what you may consider a simple thing. I will not use options again as they are a little complex for me! So are abstract concepts. Sorry but I do not always get it! The chemo was cisplatin and it has side effects that are awful.--At least for me it was at least I am alive and kicking....
And you captured a wonderful blog today--love it!!!!
Please add. that J the Cramer says sell and only hold dividend stocks--yeks-- He flip flops says europe is hurting us.
regards to all
C
Hi C,
Thanks for your detailed feedback.
Sorry to hear about side effect of chemo.
All i can say, why do any strategy which you are not 100% sure....
Life is very complicated on Wall Street without Options...
Saleem
Hey Saleem,
I'm back in business today! :)
I'll likely sell some things to pick up FCX (labor dispute resolution), LNG (post-secondary), and OCZ (addition to yesterday's half position).
Stocktrader
Hi Stocktrader,
OCZ did well yesterday + is a lousy TAPE.
Saleem
Hi Stocktrader,
OCZ did well yesterday + is a lousy TAPE.
Saleem
Hey Saleem,
I sold BAC and COH to pick up the stocks I wanted this morning.
FCX-$37.26
LNG-$8.58
OCZ-$7.64
I am pleased this morning so far. Now I have to free up some money for ZNGA Friday?
Stocktrader
Hi Stocktrader,
Good luck with your buys.
Saleem
HEY ALL
MCD is trying to break out again---time for a happy meal
FCX in MHO is not a good pick as gold and copper are in the crapper
I just wich BIDU would go up again
Yeks
best to all
Hey c,
I have liked FCX since their cash flows are so high from $0.80 cash costs in producing copper which equates to shareholder friendly policies (dividends/buybacks)--I was just waiting for the resolution of the strike.
I also wanted to up my exposure directly to commodities because I think China is imminently going to make a move to support its economy.
At some point you have to make a move in a great company that is being hurt by general market weakness.
Stocktrader
Stocktrader
Your analysis is sport on for FCX....
The volume in the market is to low , MHO...
I like the FCX story it is on of my favorite stocks of al time...
I still own SCCO so lets rock
Thanks for reply
C
Stocktrader
Please look at these news articles: Check out next to last link regarding new copper-based battery -- better / cheaper than lithium batteries.
http://www.mineweb.com/mineweb/view/mine...
http://www.commodityonline.com/news/comm...
http://www.azom.com/news.aspx?newsID=314...
http://www.commodityonline.com/news/chin...
http://www.mining.com/2011/12/11/copper-...
http://www.businessweek.com/news/2011-12...
Hey c,
Thanks for the links!
Stocktrader
Saleem
Head for the hills
Looking like a blow off market to me
Thoughts
Hi C,
NEVER be out of market..but exposure needs to be reduced.
Saleem
Saleem
thanks
Do you see GOLD--down $35
AUY is $14.28 but gold want to go lower.
very best to all
Hi C,
Gold is DOWN $80.80 cents....
Saleem
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