Sunday, June 17, 2012

Greece election seems deadlocked, Central Banks ready to pump liquidity....

Based on current exit polls, Greeks are deadlocked again with right & left both capturing similar % of seats & votes.


Third party may hold balance of power. It seems that some sort of re-negotiation with EU may break stalemate.


Last option is another election next month, IF no government is formed.


Market TAPE is telling us that Greece issue will be contained in the end.


By June 15 we have moved UP by 76.10 points or 6% in 11 trading days. We had gone down to 1266.74 on Euro worries, BUT we have snapped UP sharply since.


- Market have been comfortable because World Central Banks are READY to deal with any issues, be it Greece, Spain or whatever.
- G20 is meeting on Monday to voice their support to deal with any election gyrations.
- US Fed is also meeting this week to say anything which will boost confidence.


It is interesting to note that TAPE has been strong, when consumer sentiment has been below expectations & most US economic reports were weak.


Bearish sentiment is prevailing, while we are rallying, short interest @ 2012 high, these conditions creates "major market bottom"


Last but not the least, IBD is saying that "MARKET IN CONFIRMED UPTREND"...they have been very accurate in reading market tea leaves lately......


As we all are either investors or traders, we should follow our own game plan & NOT assume any other role in that process. Based on my experience & monitoring of history "when doom & gloom is @ its PEAK"...that is when market turns UP in a hurry...that is when i am MOST confident in my exposure...such is the case NOW.......


BLOG does NOT give buy or sell.


Saleem

11 comments:

c said...

SALEEM

Just got back from the Caribbean

Nice vacation-market seems like wants to go higher
from here.

Gotta see what happens over night! Monday may be a goodie for us Longs

let the sun shine in
C

Stocks100 said...

Hi C,

I am glad you enjoyed Caribbean...second trip in 2 years.

Market is looking good.

Saleem

stocktrader_1996 said...

Hey Saleem,

Your blog today was dead on with a very important point: "As we all are either investors or traders, we should follow our own game plan & NOT assume any other role in that process."

I did a lot of thinking over the weekend before your new blog, and came to very similar conclusions. I decided that I made a poor move in trying to game a possible small pullback in what even I thought was the start of a solid uptrend in just days from now or possibly right now.

I am an investor by nature, looking more at company fundamentals and stories, and given the chances for a multi-month or many % decline is very small in my opinion, I should have let my companies ride through any small near-term choppiness.

I'll be re-establishing as soon as possible, hopefully into a small decline.

Thanks again for your insight and wisdom which can help many different people in many different ways depending on their objectives/concerns! :)

Stocktrader

Stocks100 said...

Hi Stocktrader,

Sincere thanks for your feedback.

My objective is always to "trigger innermost thought process".....which is why i have this BLOG......

We all have to listen to the "message of market"...NOT NOISE....

Good luck with your re-positioning.

Saleem

c said...

SALEEM

Hey
HELLO to all

APPLE is a rocking--Poor me I bought apple at $598...
I guess Mr Softie's new iPad competition is the driver for APPLE uptick--or the euro money in flowing to USA stock market!

when does oil gas bottom ???
VBTA

Stocks100 said...

Hi C,

You are only 1 more UP day move for your cost on AAPL....

Nat Gas has bottomed already...almost a month ago....

Oil MAY face more downside....

Saleem

stocktrader_1996 said...

Hey Saleem,

Bought ADNC @ ~21.93. I've been watching this for a while and finally did some more research over the weekend. Their competitive position is stronger than I first realized, so I feel this story is worth investing in.

Stocktrader

stocktrader_1996 said...

Hey Saleem,

It is very difficult for me to stay on the sidelines with so much money ready! Besides ADNC, I was ready to buy some PAY this morning too, but it started high and just kept going higher. Otherwise, I'm hoping some of my key watch stocks drop some from here where I can enter more favorably.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Good luck with ADNC...unaware of this stock..small market cap & low av volume.....

Saleem

stocktrader_1996 said...

Hey Saleem,

They make chips to improve the sound quality of electronic devices. They landed in both the iPhone 5 and Samsung S III. They recently IPO'd hence the low volume and market cap.

Stocktrader

Stocks100 said...

Hi Stocktrader,

ADNC earning trend is very impressive.......

Saleem