Market has been dealing with too many negatives for many months.
- First major negative has been slowing world economy.
- Second was ongoing European debt mess.
On the first account, there IS consensus now, that indeed China, Europe, US, India & Brazil has shown pronounced weakness in their economy. Most economists were expecting gradual slowdown, but reality has been fast & steep downtrend all over.
On European debt issue, there is consensus developing, that Greece needs to be given "reasonable amount of years" to bring austerity into play. This will ensure some growth while austerity takes hold.
EU, ECB, IMF all are in-tune with "more to be done" to stabilize Greece & Spain......the pace of resolution / bailout will pick up as we go forward.
In a way we are @ crossroad....
Economic statistics will continue to be downbeat until Fall......
Market IS trying to digest all of the above, but its NOT an easy task.....
Market will swing between HOPE & DISAPPOINTMENT on a weekly basis.
Currently market is leaning towards HOPE, which is why we have NOT made any recent lows.
Based on this HOPE factor, we may see gradual move to 1363.46 first & then IF we get some resolution in EU to 1392.76 area in S&P 500.....
One must NOT get carried away with any hopeful sign in EU.
Worldwide economy IS the-deciding factor in establishing any trading range......based on what the market is telling us, the range seems to be in 1266 to 1392 area +- 30.......
Strongly suggest, aggressive buying around 1290 area & booking profit around 1390 area......which MAY keep repeating until Q4........
BLOG does NOT give buy or sell.
14 comments:
SALEEM
so far you spot on
Market in decline
I have taken a beating and it smarts a lot--I may sell some today and of course the market may turn because I sold.....
here is some news on fertilizer stocks:
8:58 AM Dahlman Rose raises its outlook on fertilizer shares, believing they largely reflect the valuation eroding impact of a large crop; given that backdrop, the firm sees only two possible outcomes, both of which point to higher share prices. It upgrades CF and POT to Buy from Sell, AGU, RNF and MOS to Buy from Hold, and IPI and UAN to Hold from Sell. (Read the comments on this)
Hey Saleem,
I might survive today?:
WWWW initiated buy
MOS upgraded to buy
PAY initiated long-term buy
CTXS partners with CSCO
ERY hedge
Good luck to all!
Stocktrader
Hi C,
Do what you need to do....rest we do not control.....
Saleem
Hi Stocktrader,
I do not monitor any of your stocks except LEN...so let me know @ the end of the day.......how you fared.
Nice to have so many buys & a hedge on a down day.....
Saleem
Hey Saleem,
New home sales are unbelievable. Supply down to 4.7 months!
Stocktrader
Hi Stocktrader,
LEN is the only bright spot in my portfolio today....
Saleem
Hey Saleem,
Dividend yield on CLF is now 5.4%--more crazy stuff...
Stocktrader
Hi Stocktrader,
CLF has come down too much..it IS getting in the territory of OVERSOLD....@ $42 it is a screaming buy....
Saleem
SALEEM
Got back from the dentist--ouch, they are so expensive.
Wow market really sold off
Dropped way low --so I am holding on selling any thing
GLD is Green
POT and AGU are both up....
best to you all
C
Hey Saleem,
I sold my PFPT at average 14.84 just now. I wanted some funds to buy either CLF, BTU, or NVDA at close. When I can finally sell ERY tomorrow, I'll probably rebuy PFPT, hopefully lower.
Stocktrader
Hi C,
YES...market is weak.......
Saleem
Hi Stocktrader,
I may do some switching also.....
Saleem
SALEEM
What are you considering for a buy??
Just asking
C
Hi C,
I am not sure IF i will make any move...BUT IF i decide to switch..then i will post.
Saleem
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