Economic reality was less than encouraging from India,China,EU & US.......it showed way less than consensus data.
DAX took it on the chin, closing down 3.42%
S&P 500 low today was 1277.25
200 DMA is 1284.53
S&P 500 closed @ 1278.04
RSI 28.47
Internals were :
Down volume led by 21.96 to 1 in NYSE & 25.05 to 1 in Nasdaq
Declining stocks led by 6.10 to 1 in NYSE & 5.62 to 1 in Nasdaq
New 52 wk lows were leading, 160 in NYSE & 143 in Nasdaq
VIX jumped 10.81% @ 26.66
Oil @ $83.23
Gold @ $1622.10
Portfolio is COH,LVS,LEN,LNKD,JCP
Here is my weighting @ close :
COH 48.20%
LNKD 25.63%
LEN 10.83%
LVS 8.76%
JCP 6.58%
Exposure 80%
Stocks which were green included AUY,GG,SLW,ABX,FCX.......
Next post by 2 PM Sunday.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hey Saleem,
We are now stuck in that spot where pressure mounts for countries to do more, but they never act fast enough. It will be tough for the markets overall to gain much traction without Europe dealing rapidly with their structural problems. The dollar strength has helped emerging economies press the gas with inflation figures crashing, however. This should ultimately end up being a mitigating factor, but probably not yet.
My portfolio stands as follows:
WWWW - 9.7%
APKT - 9.1%
GGC - 8.5%
LEN - 8.2%
CTXS - 7.8%
GWAY - 7.5%
PMTC - 6.9%
PFPT - 5.6%
ZNGA - 5.4%
APWC - 2.3%
(cash) - 29.0%
By selling off my commodity stocks this week, I've mostly reduced the portfolio to stocks that help other companies be more productive/advanced or stocks that have special stories or catalysts which I feel can help them outperform or gain in tough times. My most pure economically sensitive stock is LEN, but I feel housing will be a leading sector in the next up cycle, whenever that is.
I again felt like I wanted to deploy cash on such a huge down day, but couldn't find the right stock and/or price, so I'll do more homework over the weekend. I do not expect a sudden solution to all the world's problems, so I feel I can be at least a little patient.
It would not surprise me to see China take interest rate/RRR action over the weekend. Unfortunately, I feel like it would only be a chance to take profits in many stocks. Some small caps may benefit from beginning month flows and I feel like I am exposed there well.
Enjoy a great "summer" weekend! :)
Stocktrader
Hi Stocktrader,
I got up late around 930 AM to see that world is taking a step back in economic progress.
I firmly believe in deeply oversold condition which exist today...it will create a bounce any day now..news or no news.
Your thesis as usual, is based on sound reasoning......
Until Monday......
Saleem
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