VIX closed @ 18.28, lowest level since June 2011. S&P 500 was around 1270 area @ that time. S&P 500 then tumbled to 1074.77 by October 2011. This drop was 196 points or 15.43%. It is always important to look back for some perspective.
RSI currently is @ 68.92, highest level since August 2011. Anytime when any technical indicator is @ six month high, it deserves deep analysis.
CMF is @ 0.498, also @ six month high.
All three indicators are trying to tell us something ?
Are three indicators pointing to a "temporary top" in this market?
IF we look @ S&P 500, which closed @ 1315.38.
S&P 500 chart is pointing @ potential resistance from 1340 to 1350 area on a short term basis. IF we cross that on some positive news, then 1370.58 is a major resistance.
It is important for traders to spot overbought indicators.
Leaving some money on the table may be wiser than risking major profit.
Based on momentum, market is heading much higher in long term. It is impossible to predict future momentum, it can turn on a dime.
HFT are technically driven, their black box is programmed to sell @ certain numbers. When selling starts black boxes can accelerate selling in a hurry......so be very very careful.
As i have mentioned, i am @ 85% exposure only, this will be trimmed further by Tuesday to as low as 0% or may initiate some short positions........
Tuesday AAPL is reporting, YES they will beat...BUT there may be questions about their ipad sales & ipad Sales projection for current Q. As most of you know that RIMM has slashed its playbook prices to 1/4 of Ipad price of comparable memory. I do not know of anyone who wants to pay 300% more for a similar product. This is causing softer sales of ipad in my opinion.When there was no competition from RIMM in pricing, AAPL missed ipad sales last Q also. Also AAPL is reaching a much higher base to beat numbers in future. AAPL guidance may be softer.
SO, market is @ "technical crossroad".....tread with caution.
BLOG does NOT give buy or sell.
Saleem
15 comments:
Looks like mixed news on RIMM
Important people left the company
I dunno what exactly happened!!!n :)
BIDU is green and AMZBN is red, Hmmm
C
Saleem
What a surprise, my first thought when I see RIMM's ceos step down. Stock will fly, because now it just open up all possibility for this company, Since it is down today, i am going to add more
Hi Up,
I added 36% more RIMM @ $15.90 already.
Conference call was good, RIMM needs German character which new CEO is.
Saleem
Saleem
Good move, I think Rimm might be close green today when everything is digest
Hey Saleem,
What do you think of VMW ahead of earnings? I feel like the negative sentiment is too heavy?
Stocktrader
Hi Stocktrader,
VMW EPS estimates have not changed @ all for 90 days.....
My confidence in VMW is very low...thus will not suggest taking a position.
BUT..we all have "gamblers instinct"..IF you feel upto it ..try it & see what happens?
Saleem
Hey Saleem,
I've heard a lot of analysts this month suggest a strong quarter, yet the street sentiment seems low (due to competitive issues I believe). I'm not quite sure how that sets up for earnings, but I tend to think the good earnings can power through the sentiment, especially in this "bullish" phase of the market.
I'm not sure if I'll take a position--I'm currently just interested.
Stocktrader
HELLO UP
Be careful with RIMM?
You can get burned easy here
J the Cramer was oh so negative this morning
Hew is a wet blanket however.
Just my .02 cents
Nat Gas and Copper are hot again
Best to all
C
C
Thank you for your warning. But I got lot shares at 13.5, so I am still ahead. Like I said before, When cramer said sell, that is the time i will buy more.
Saleem
I am puzzle by X, it is one of the strongest stock when it went form 24 to 28, since than, market rally and x stall big time. Any suggestion
Up
Wow
I take my hat off to you. Great share price you have...
You the top person
Yes.... :)
best to all
C
Hi Up,
X is looking very good "technically speaking"....low RSI @ 57.33.
Made series of higher lows.....currently @ $28.40..ready to take out $28.95 & then "breakout" @ $29.24....
IF i were you, i will wait for a breakout which is close @ hand.
Fundamentally, i do not follow this company @ all.
Saleem
SALEEM
Why is amazon share price dropping
Should we sell
thanks
Hi C,
AMZN trades erratically, there is no news....
Volume is normal.....
Some traders are getting out, because it went below 50 DMA which is @ $188.62......AMZN is @ $186.59...
RSI @ 52.34..which is in buy zone....
I do not see any reason to sell.
Saleem
SALEEM
Please accept my humble thanks
C
PS I sold my CNQ today!! $$$$$
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