Sunday, February 5, 2012

Nasdaq & Small cap @ new breakout......NICE

Nasdaq has taken the lead in breaking out above recent highs.

Small caps are also @ new breakout .

Technicals of this market has spoken, it is decidedly bullish & going higher.

RSI are sitting @ :

Dow 69.57

S&P 500 73.59

Nasdaq 79.68

As you can clearly see that S&P 500 & Dow has to play catching up to Nasdaq strength.

S&P 500 is staring @ 1385, which is May peak.Closing weekly number is 1370.58, these two numbers are important to know IF there is a "real breakout".

We had flow of many positive news, Jobs number was the bigger news which gave breakout to many stocks.

As i am a fan of RSI for direction, i can only suggest that your portfolio RSI should be in much higher focus now.

Markets have been going in a "rotational correction" for a while, thus having low & high RSI stocks is a good strategy.

YES there MAY be a "pause" sometimes this week in indices, some stocks may pullback more than others.

In a starting bull market, there is surprises on the UP moves not in down moves.

Dow @ highest point since May 2011...

Nasdaq @ 11 yr high....

These are powerful statistics.

IF you are underexposed to this market, it is important to have a balance of  laggard & strong stocks.

Laggards needs to be evaluated for its growth potential going forward.

This market has been very good for those who stayed in high growth stocks.

Market has moved much faster & in a straight line, which is highly unusual.

Nobody was able to predict this strong move.

It is important to "go with the flow of this market"

Correction or pullbacks should not deter a strong bullish exposure.

I intend to increase my exposure as we go along.

TAPE is telling us to believe in "major bull moves ahead"

New 52 wk highs are telling us more than what we need to know...

Good luck in your OWN analysis & view of the market.

BLOG does NOT give buy or sell.

Saleem

16 comments:

Debude said...

Saleem et all,

Having been watching the site for a while, the blog by far provides the most helpful info for my investment decision. The Dec to Jan (now Feb) rally is very impressive and you made an excellent projection with great analysis.

No doubt, the market is very strong at the moment, especially for the Nasdaq, which went up 350 in a month and half. I did start taking profits. Maybe it is still early, but I was trying to deal with the overbought condition. Now the question is where is the peak and when we will get there? If we follow the last two years' pattern, Nasdaq bounced annually with 500-600 points difference from the low to the high, so probably Nasdaq 3000 could be reached in months and S&P could hit 1500. Golden cross is nice, based on that, any 5% pull back could be a buying opportunity.

Anyway, nice blog.

Stocks100 said...

Hi Hwu,

Thank you so much for your appreciative note.

Since early 2007, this BLOG has tried to make sense of Wall & Broad St thinking....

There are about 400 regular visitors to this BLOG, which is a testimony to my "outside the box analysis"

Adaptibility is the key to making money....

Never fight the TAPE......

Saleem

stocktrader_1996 said...

Hey Saleem,

Looking to sell TZA at open, put in order for 18.70, so hopefully will get that/higher as it opens or just after. I'll be gone for the next 35 minutes or so.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Good luck with TZA order..so far you have missed your fill by 2 cents.....

Saleem

c said...

Saleem

Good Morning
copper is doing fine today--FCX and SCCO are holding up...

APPLE is oh so strong

Is AMAZON tanking --I was going to buy but is is getting spanked?

PS
How you feeling --cold all gone and fit as a fiddle...??
C

stocktrader_1996 said...

Hey Saleem,

It missed me :(.

Stocktrader

Stocks100 said...

Hi C,

I am fine thank you !!!

AMZN is a buy when its down?

Good luck with SCCO & FCX

Saleem

stocktrader_1996 said...

Hey Saleem,

Argh, chased it down all the way to 18.44--pretty sad how that worked out...

Stocktrader

c said...

Hello

do you all see the action in GBK
up a whopping .53 cents--any one know the reason


thanks

Stocks100 said...

Hi Stocktrader,

@ least you are out of TZA...

Saleem

stocktrader_1996 said...

Hey Saleem,

With the TZA proceeds, I added to SWC at 13.9165 and LEN at 22.91. I'm glad I had a chance to get some on this pullback.

Stocktrader

Stocks100 said...

Hi Stocktrader,

LEN is an excellent choice.

Saleem

c said...

SALEEM

her is my % holdings
BGS 4
BMY8
GE 5
IVR 5
ETP 9
NYB 1 KFT 6 KLAC 4 KMI 5
MWE 5
DD 6
SLRC 5
SCCO 11
T 12
TOT 8

AMAZON. GNK FCX CNQ less then 5% in my cash account and I am fully invested at this time

I bought amazon today at $184.50.


C

Up said...

Saleem

Amzn chart set up nicely , if market turn, I think it will blow through high of day easy

Stocks100 said...

Hi C,

Good mix of stocks in your portfolio.

Good luck $$$$

Saleem

Stocks100 said...

Hi Up,

AMZN should be more than OK.

Thanks for your chart read.

Saleem