Indices faced negative economic data from China & Europe @ open. US economic numbers were better than expected.
Indices closed down with focus on European & Chinese data.
S&P low today was 1388.73, closed @ 1392.78
RSI @ 60.68
Internals were :
Down volume led by 5.34 to 1 in NYSE & 2.18 to 1 in Nasdaq
Declining stocks led by 3 to 1 in NYSE & 2.17 to 1 in Nasdaq
New 52 wk highs were still leading, 34 in NYSE & 49 in Nasdaq
Oil closed @ $105.35
Gold closed @ $1642.50
VIX closed @ 15.57 UP 2.91%
AH Futures UP
AH Asian Markets Down
AH Oil & Gold UP
AH ER :
NKE UP 1.14%
MU Down 3.21%
About market, there is too much jubilation in CNBC about today's minor slump. ADAMI guaranteeing 1349 & implying more downside ahead. I personally believe that, we have a very good chance of closing green on Friday. Also i believe that we may make new 2012 high in next 6 trading days.
BLOG does NOT give buy or sell.
PS...there is only 1 post on Friday's around 6 PM.
Saleem
Hey Saleem,
ReplyDeleteI am considering some selling in my portfolio. I am torn between the weaker global growth environment, but also the ability of the Chinese to make "surprise" policy announcements.
The $SPX looks fairly certain to make a negative MACD cross given the trajectory of the two lines currently. I was looking forward to window-dressing through the end of this month, but possibly that could be contained to a very few big names with the rest of the market lagging internally.
It seems to me the slowdown in Europe is deepening and China will slow too far for a least a little while before new policy measures can take hold. I was looking for great earnings and guidance coming soon, but given the above, possibly this earnings season could be more muted than I thought, and with the runup we are experiencing now, that leaves us vulnerable?
It does concern me that so many people, including the "pundits" on CNBC, are looking for a correction, but I guess if you call for a correction for 100 S&P points, eventually you can be right? Also, I did note the Investor's Intelligence survey recorded a very low bearish reading this week.
Altogether, there are a lot of moving parts, but given that it pains me to think about some selling, it might be the right move?
I'm still thinking about all this, but I wanted to share my current thoughts...
Stocktrader
SALEEM
ReplyDeletethe TV pundits were at there worst yesterday
it was like armageddon was coming!
Short this short that--Gesh
good Blog today -- I like it a lot ---- I remember the saying
when all around you think that they smell blood in the streets it is time to buy.
lest make some $$$
PM is red for now -we gotta go up IMHO
C
Hi Stocktrader,
ReplyDeleteI can see what is your thesis, BUT there is one very important fact, which needs to be factored in.
US economic strength is very obvious, which should carry the day.
About selling, commodity based stocks are extremely vulnerable because of Chinese weakness, that is where i will concur.
That is my summary.
Saleem
Hi C,
ReplyDeleteI do not believe market has turned lower, correction of less than 2% is normal.
Everybody is looking for correction & finding justification for that to happen.....just MAYBE it happened yesterday?
Saleem
Hey Saleem,
ReplyDeleteI ended up using this morning pop to sell everything (except APWC).
I will step back and evaluate further from a clear position.
Stocktrader
Hi Stocktrader,
ReplyDeleteGood luck with future strategy.
Saleem
Saleem
ReplyDeletethe market is rocking up and down
AMazon was hot
now cooling down
it want to go higher
Cheers
I sold KFT
buy ETP
So far Guy O"Dummy on fast money, short on FCX is not working
C
Hi C,
ReplyDeleteI like your irish name for Mr Guy.
Market is OK IF one practice patience.
Trend is UP.
Saleem
Saleem
ReplyDeleteI have to agree with commodities, with China and Europe slow down, it's a risk to hold those stocks.
C
As you see my comment above, i will not buy any commodity stocks until i see sign of growing in world economy. Right now, i am playing social network stock like LNKD. It is breaking out and I think Facebook's IPO will value this company higher
Up
ReplyDeleteI agree that commodities are a tough decision
Their is a rotation going on right now and $$$ is moving to Amazon and certain other plays
GOLD, COPPER, Silver are out of favor, India has a ban on imported Gold! It is one tough market..
I believe China will do all it can to stir growth - which should help commodities--POT is so over sold it has got to come back.
You got to follow your intuition--my crystal ball is not well I am just rambling!
C
C
ReplyDeleteProblem regarding commodities. Since of last years low, they stuck in middle of range. In other word, they didn't participate in this rally. But of course, if you could time it right, you could make ton of money by buying oversold and sell when it is overbought again.
Hi Up,
ReplyDeleteI like your LNKD..it has shown remarkable strength inyesterday's selling & today....
Saleem
SALEEM
ReplyDeleteyou may want to jump on APPLE
there was mess up on the stock price
price drop to a bargain $$597
thoughts
Hi C,
ReplyDeleteAAPL is a strong stock..it wants to go HIGHER.....as i said before AAPL should be a long term hold NOT a trade.
Saleem
Saleem
ReplyDeleteThanks
The price of APLLE was off by $50 bucks
I put an order in lost it--no takers
An order for $598 was taken finally not the best price
but still!
gonna sell it to do a day trade
thanks amigo
Hey Saleem,
ReplyDeleteThe last time I sold everything MS rallied straight up for a day and a half--repeat performance this time! :)
Stocktrader
Hey Saleem,
ReplyDeleteAlso, the $VIX has been extremely volatile intraday for a week or so now. I wonder if that TVIX blowup has something to do with it, or if actual changes in the measured options premiums are that large?
Stocktrader
Hi Stocktrader,
ReplyDeleteTVIX down another 27% today has something to do with 2X leverage & how they are priced...2X / 3X are priced on derivative which never makes sense when underlying asset has collapsed like VIX...
VIX is down another 3% today X2 should be 6%..NOT 27%????
Saleem
SALEEMm
ReplyDeleteAMAZON to the moon
Alice
way to go
C
SALEEM
ReplyDeleteSFL is making a move up today 2.2% yes.
Sold MS, needed some cash
I alos got more SDRL up 1.5%
best to all
Hi C,
ReplyDeleteAlice number is $217.....
Saleem