Friday, May 11, 2012

Constructive close today, despite JPM $2 Billion disaster

Indices were bracing for a big downdraft, but cooler heads prevailed. Indices were off their lowest level by close.

As markets were deeply oversold already, there was less willingness to sell.

JPM CEO was always talking a "perfect game", but now we know, "he ain't so perfect after all" $2 billion++ loss is no laughing matter, but CEO is very casual about it,using adjectives to justify, NOT heads rolling including himself...the buck stops @ his "Mahogany desk"...

Internals were :

Down volume led by  2 to 1 in NYSE & .98 to 1 in Nasdaq

Declining stocks led by 1.51 to 1 in NYSE & 1.44 to 1 in Nasdaq

New 52 week highs were leading in NYSE, new 52 wk lows were leading in Nasdaq

VIX closed @ 19.89

Oil closed @ $96.13

Gold closed @ $1584

Canadian $ UP49 tick @ 100.32, Canada created 58,200 jobs in April well above consensus, CAD rallied......

Portfolio is COH,LSI,LVS,LNKD,RIMM

Stocks which were UP 1% or more included LEN,JCP,NTES,VMW,
FFIV,CRM,LRCX,
MU,BRCM,CIEN,
FNSR

Portfolio weighting is :

RIMM 39.18%

COH 34.04%

LNKD 14.25%

LVS 6.87%

LSI 5.66%

Exposure 89%

Next post by 2 PM on Sunday.

PS...post was delayed due to a personal matter.

BLOG does NOT give buy or sell.

Saleem

5 comments:

stocktrader_1996 said...

Hey Saleem,

It was another challenging week with many beta stocks underperforming. The portfolio is as follows:

DOW - 9.6%
GGC - 9.5%
APKT - 9.2%
CF - 9.1%
LEN - 8.7%
PFPT - 8.6%
FCX - 8.3%
OCZ - 7.9%
CLF - 7.5%
FXCM - 6.9%
PMTC - 6.9%
ZNGA - 5.4%
APWC - 2.3%
(cash) - 0.05%

The only move I made this week was swapping MET for GGC. GGC is up 6.3% since my purchase. APKT and CF fell from the top simply because they dropped this week to those levels. Many stocks I have are 30 or below RSI such as FCX 30.68, CLF 24.63, FXCM 20.55 and ZNGA 26.53. This is not good as I've absorbed a lot of the price action that took them to these levels, but I believe they all represent attractive value here.

I'm not really anticipating much better next week, but I continue to look for relative value in the market. CHK and WWWW are some stocks on my radar after CHK's recent tailspin, and WWWW's massive non-dilutive secondary. This upcoming week also brings PFPT's first quarterly report as a public company. I don't actually expect much from them in this or next quarter's numbers, but the increased visibility and longer term story should propel the stock higher.

Hope your weekend is great! I'll be enjoying a game at the ballpark with my wife on Mother's Day (she's a bigger fan than me!)

Stocktrader

Stocks100 said...

Hi Stocktrader,

We are all in the same boat, watching RSI dropping into 30 from 50+ level where we bought.

Current market condition is not kind to any portfolio, as everything is shrinking in price.

BUT...there is next week to hope for...

Enjoy mothers day, with all the happiness she brings to everyone year round.

Saleem

c said...

Happy weekend to all

Enjoy the ball game and the weather is to be awesome

I will get the boat out for some fun

Up --hope all is well with ya!

best to all
C

stocktrader_1996 said...

Hey Saleem,

Finally some news from China that could help:

http://finance.yahoo.com/news/china-acts-boost-loans-bolster-130536612.html

50 bps RRR cut.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Yes Chinese announcement is good news for world markets.

Saleem