IBD changed its market outlook to "Market in correction"......on Friday AH.....
Market has reacted to slew of economic data, which was below consensus.
Jobs growth was well below consensus.
S&P 500 has lost 3.35% in 4 consecutive days, Tuesday high was 1415.32 & Friday low was 1367.96.
S&P 500 closed @ 1369.10........
RSI @ 42.73
CMF negative in all indices
CMF outflow is most pronounced in Nasdaq.....
SO...where markets are heading ?
I personally beieve that markets are near support & may have seen the low or are very close to finding support.
Support in S&P 500 is near 1357.38.....
Resistance maybe near 50 DMA or 1386.64
As expected, markets are choppy & will remain so.
Profit needs to be booked when resistance appears.
Swing trading is the-best approach between now & end of August.
Traditionally between May & October are "wild months"
Less exposure & fast trading is the way to go..
Expectations needs to be brought down for next 6 months.
Less stressful trading needs to be adopted.
Traders need to understand, that leadership changes every 3 months.
Old high fliers are being sold off in a hurry.
We are all set to see oversold bounce, try to take advantage of that, as it may not last more than 3 days....then back to testing of support.
We are in a close trading range, try to adapt.
Good luck with your OWN take of market & your comfort level.
BLOG does NOT give buy or sell.
Saleem
12 comments:
Hey Saleem,
Ever since I got back from my morning commitment, I've been trying to find a stock to sell to buy GGC. Every minute I'm losing relative value on that trade, and still haven't come up with one to sell. It is hard when all your stocks are beat up.
Stocktrader
Hi Stocktrader,
Pick one & sell it......relative value is in buying better stock.
Good luck!!!!
Saleem
Hey Saleem,
Swapped out of MET ($31.28) to buy the GGC ($31.51776). I'm not positive I made the right choice selling MET, but it is definitely the stock that confuses me the most as to why it isn't higher by now. The low treasury yields hampers its earning power quite a bit. As for GGC, besides being a great business right now with huge earnings leverage, I think it is possible that another suitor shows up, which makes this a great stock at these levels I believe.
Stocktrader
Hi Stocktrader,
I think your rationale is strong on the buy side.
Good luck with GGC.....
Saleem
Saleem
As uncertainty on Europe dominated, it is wise not to touch anything. Even if bounce occur, I don't think it will last long.
Look like we are enter a period which we could compare to the last few months of the year.
One note is big players step aside on Friday and i think they will take the market higher today. Good luck to all of us who still holding the bag
Hi Up,
Markets are in "doldrum"...until more clarity in world economic order.....
Good luck with your strategy.
Saleem
Hi All and fellow bloggers
The market is making me sick
sew saw
hard to make money with a down trend in place!!
I am hoping for a better market--but I guess it
is May go away................
Yuk
Hi C,
NO..its not MAY & GO AWAY....BUT different stocks & fast trading.
Saleem
SALEEM
was looking at GS
It is looking strong
Hmmm
regards
Hi C,
Based on seasonality Banks / Finance related stocks..are not in vogue.
Saleem
SAELLM
THe market is showing some strength now!
SCCO is back as is copper
Look out I may make a buck or two
Smile
C
Hi C,
$$$$$....good for you !!!!
Saleem
Post a Comment