Indices were hit with so many negative data & impending banks downgrades, that it was inevitable to escape what happened today.
@ close indices took it on the chin on higher volume, down 1.96% to 2.44%.
S&P 500 closed @ 1325.51, low was 1324.41.
RSI @ 48.09
50 DMA is 1345.98
Internals were :
Down volume led by 14.75 to 1 in NYSE & 7.78 to 1 in Nasdaq
Declining stocks led by 4.32 to 1 in NYSE & 3.84 to 1 in Nasdaq
New 52 wk highs were leading by 19 in NYSE & new 52 wk lows were leading by 6 in Nasdaq
VIX jumped 16.47% @ 20.08
Oil @ $78.20
Gold @ $1565.50
AH Futures UP
AH Asian Markets Down
AH Oil UP
AH Gold Down
About market, indices looked vulnerable to me after close on Tuesday, which prompted me to book profit in LNKD. It IS important to book profit after "major runup". IBD has changed its market outlook to "market under pressure". I personally believe that "slower worldwide growth is a given". We were overbought & GS added "fuel to data fire" by suggesting "shorting the market" with 1290 target. I do not think we are set to go there, after today's massive selling. An oversold bounce is in the card.
BLOG does NOT give buy or sell.
Saleem
14 comments:
Saleem.
So far so good PM is up nicely
All my oil plays are hurting -----big time
This may be a v good day to make$$$$$'
C
Saleem
MS is interesting on the down grade--only 2 notches for MS
It is up .55 cents PM --only saying I got 700 shares at $15.60
Hey Saleem,
If it wasn't for the fiscal cliff pre-slowdown, I think stocks would be a perfect buy here. Unfortunately, I think we see hiring freezes and little growth in the US specifically until we get better ideas on how it will be resolved.
I'm sure there will be buys along the way, but where do I buy something like CMI or CLF in a messy environment like that?
Stocktrader
Hi C,
Market is OK..but my stocks are NOT.
Saleem
Hi Stocktrader,
You need to follow your thesis.
IF you do not see opportunities, then it is wise to stay put with your smaller exposure.
Saleem
Hey Saleem,
I really, really want to buy some of my favorites again. I might do another round of buying mixed with another hedge. The first hedge is really working well with the companies I kept--I was down less than 1.5% yesterday and am up nearly 1% today.
Stocktrader
Hey Saleem,
To add though, I really feel like the Europe situation is done being the major headlines, and I think the emerging economies are doing exactly what they need to to stimulate sustainable growth. That leaves the US, and I don't think many traders see this fiscal cliff coming yet, so I'm inclined to be a buyer...
Stocktrader
Hi Stocktrader,
I am glad that your portfolio & hedge is performing well...that is the whole idea of investing / trading.
Good luck with your future picks.
Saleem
Hey Saleem,
Picked up GGC and APKT here as both are acting quietly well I think. 3.5 positions left available.
Stocktrader
Hey Saleem,
Also bought MOS and CMI back.
Deciding between CLF, LEN, and M for the last 1.5 positions.
Stocktrader
Hey Saleem,
Ended up buying M and 1/2 LEN.
I'm back all in with a small hedge, although potentially I don't have perfect distribution given my in and out moves.
It certainly seems like a lot of bad news is priced in despite the technical setup being questionable here. I guess I'd rather be long given the Europe situation is relatively diffused in my opinion--we just need growth now! :)
Stocktrader
Hi Stocktrader,
Good luck with your renewed enthusiasm for full exposure.
Europe will remain in picture for a long time to shake things up..its alway's the calm before storm.
Saleem
Hey Saleem,
I'm really starting to get a good feeling about the market today--maybe yesterday was a "one-hit wonder".
Looking for a great close! :)
Stocktrader
Hi Stocktrader,
Too many things were impacting markets yesterday.....@ least those things are out of the way in terms of reaction......
We need to move above 50 DMA in all indices to get some stability.....
Saleem
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