Wednesday, February 1, 2012

Indices closed UP .66% to 1.22%....NICE !!!!!

Indices were strong on manufacturing data worldwide & Greece optimism.

Internals were :

UP volume led by 5.41 to 1 in NYSE & 6.98 to 1 in Nasdaq

Advancing stocks led by 4.82 to 1 in NYSE & 3.39 to 1 in Nasdaq

New 52 wk highs were in huge lead, 285 in NYSE & 134 in Nasdaq

Oil closed @ $97.71

Gold Closed @ $1749.50

VIX closed @ 18.55

Stocks which were UP 2% or more included RVBD,
LVS,X,AGU,CIEN,FNSR,JDSU,C,ARUN,WWWW,
WYNN,OTEX,NTES,MPEL,VMW,FFIV,BWLD,
CRM,MS,BRCM,VECO.....

AH ER :

CMG Down 1.89%

LVS Down 1.55%

QCOM UP 5.02%

JDSU UP 6.09%

OTEX UP 9.27%

My portfolio weighting are :

AMZN 43.57% long

RVBD 37.55% long

LVS 18.88% short

I am getting big break from my CAD long & US$ short position, it has saved my equity in a big way. I am UP 36.45% since start of the year. This is quite good, considering that i have pulled out substantial amount of equity from market. Even today with AMZN slump, my equity ended UP 4.08% due to increase in CAD valuation. CAD closed UP 81 tick for me today. 36.45% YTD gain is due to 54% gain through equity & 46% gain through CAD. I would have done much better IF i had left all my equity in market. Also RVBD & AMZN did not help either. Bottom line, quite thankful for performance to date.

About market, today was quite impressive in terms of internal strength as listed above.S&P 500 should take out 1333.47, RSI @ 67.03 is getting close to 70 area where we pulled back from. I am going to maintain my short in LVS & may add another short position to balance my long AMZN & RVBD.

This market has been more strong than i had anticipated, thus paying a price from less exposure. BUT overbought conditions do get corrected & was a fact for previous four days.

AH Futures Mixed

AH Asian Markets UP

AH Gold UP

AH Oil Down

BLOG does NOT give buy or sell.

Saleem

31 comments:

c said...

SALEEM

I gotta concede that the market is stronger than I considered--this bull m,ay run for a while!

I am glad for the extended run--but the correction will be more severe--when it occurs..

So I think that you are oh so correct in your thesis that a correction is coming.......

I will hold Amazon until it gets higher in price
I want some cash in my account--FCX looking good.

I am to week to short a stock and need to do some serious study and open a second account as you said
But--I am scared--I will stick with one day using QID

Stocks100 said...

Hi C,

Shorting is no different than buying. You have to find stocks which are overextended & market is also extended....those are two ideal scenario..but stock focus alone can do it.....

Hopefully my LVS short may be a real life tutorial for you & me.

I do not believe that pullback will be of serious nature..just like previous four days.....about grinding 3%.....

Saleem

c said...

Saleem

thanks for your feedback

I was thinking of a 10% correction-- would love a 3%

hope rings eternal!

Lest rocks LVS

On J Cramer not he panned amazon last night! I did not like his comments-nopw do I agree with him.

Go Amazon

Stocks100 said...

Hi C,

Covered my short on LVS @ $49.70...

Saleem

c said...

SALEEM

LVS is way strong today

so sorry
looks like you did not lose any money

C

Stocks100 said...

Hi C,

Made few $...was lucky to get that price.....

Saleem

Stocks100 said...

Hi C,

Bought CNQ @ $40.01

Saleem

Up said...

Saleem

Great covers on LVS, looks like there is a lot of support for stock lately. With this market's direction, I think it is better to stay put and let the ship flow. Going against the market now is like men trying to go against nature. When i see some cracks, I will follow you on your shorts.

c said...

SALEEM

I like CNQ
cool!!!

It has a 96 buy rating from Barchart
Overall Average: 96% Buy

Price Support Pivot Point Resistance
39.99 39.37 40.03 40.69

I may get some too,,,
C

Stocks100 said...

Hi Up,

LVS report had many crack in it but it was supported by some HFT...i was expecting it to drop $2 to $3.....

When thesis is not working out..then it is take the money & run......

YES..market is still wants to go higher.

Saleem

stocktrader_1996 said...

Hey Saleem,

I am really considering some TZA or SQQQ to protect my portfolio right now. Am I getting faked out? or does it feel like we could be setting up for a downward move?

Stocktrader

stocktrader_1996 said...

Hey Saleem,

Ended up buying TZA at 19.69--I just desperately felt I needed some protection, but didn't want to sell my longer-term stories. I'm really surprised in the stock move of JDSU today, and some of the technical formations in the $SPX and $COMPX are bothering me.

Stocktrader

Up said...

Stocktrader

I find that hold less positions in this overbought condition made me feel good. If market correct, I still have cash to buy and if market keep going up, I am still a happy person.

c said...

Up

you can always get a Divi stock and participate in the rally --if we nose dive the divi offer some protection/

I am back in GE again -- looking for a run up!

best to you
C

Up said...

Saleem

Is financial for real. Look at MS, it refused go down even when they enter RSI overbought zone. And GS too, i hear that they invested a lot of money on facebook. They are in a very sweet spot atm

stocktrader_1996 said...

Hey Up,

Thanks for the advice. For some reason I have a problem with partially or totally selling companies in which I am convicted. I'd rather hedge out the market risk instead, although it is eating up more capital that way.

Stocktrader

Bert said...
This comment has been removed by the author.
Bert said...

Do any of you think APKT will do good in earnings tonight? they are sure shooting up right now.

stocktrader_1996 said...

Hey Bert,

APKT is my second largest position. They already pre-announced the bad earnings, so it comes down to guidance. They've said they will be more conservative on guidance in the future so as not to miss again (like they have the last 2 Qs), so I'm not sure how Wall Street will spin it. I think maybe there's initial sluggishness and then ride up? I think most analysts are in agreement that the second half of the year should see greater adoption for their newest products--it just comes down to management execution.

Stocktrader

Bert said...

Thanks for your insight, I will not play earnings but I might get into them a later time.

Stocks100 said...

Hi Stocktrader,

Sorry for late reply, was away doing some personal chores.

Just got back..so missed my 2 PM post..will catch up around 10 PM or so...

Market behaving way better than my instinct..good for everyone.

Saleem

Stocks100 said...

Hi Stocktrader,

Conservative guidance is never celebrated on wall street....even AAPL has learned not to do that....so expect "volatility" IF guidance is below comsemsus....

My 2 cents !!!!

Saleem

stocktrader_1996 said...

Hey Saleem,

APKT passed up CF right near close to become my largest position...should be an interesting after hours for me!

Stocktrader

Stocks100 said...

Hi Stocktrader,

Good luck on APKT $$$$

Saleem

stocktrader_1996 said...

Hey Saleem,

They missed the pre-announce--great start! LOL

Listening to the CC now...

Stocktrader

stocktrader_1996 said...

Hey Saleem,

Bad comments already about 2012--could be down $8-$12 after it opens.

Bummer :(

Stocktrader

stocktrader_1996 said...

Hey Saleem,

Wow $27+ AH open--wish I could get out now...

Stocktrader

Stocks100 said...

Hi Stocktrader,

Try to get out first thing in the morning.

Credibility is very important from CEO...27 cents & Revenue guidance was not accurate even after Q closed?

Saleem

Stocks100 said...

Hi Stocktrader,

Some "big brokerage house" is supporting APKT stock price....you may get out in the morning @ BREAKEVEN?

Good luck !!!

Saleem

stocktrader_1996 said...

Hey Saleem,

I am really surprised by the after hours action. They guided for 10% revenue growth for 2012 when the street was 20%+. The only thing positive is that they are being extremely conservative and counting on very little US carrier business still now which might allow them to beat if we see capex go up at the major carriers.

I will be watching carefully tomorrow. When I am this surprised by the price action, others might be too and strange things might happen.

Stocktrader

Stocks100 said...

Hi Stocktrader,

RVBD affirms full year & bringing beter products..thus an impact on Q1..it gets killed by 22%...

APKT guidance is 50% for full year & is barely down 9%....life is interesting on Wall & Broad.....

BUT..i am happy for you with this "strange TAPE"

Saleem