Sunday, July 22, 2012

AAPL earning report will set the direction of this market.....

AAPL reports this Tuesday after close. AAPL is expected to beat expectations. How they guide will set the tone for AAPL stock & entire market.


There is a FEAR that AAPL iPhone4S Sales may be guided down for next Q in anticipation of new iPhone5........


As to the market away from AAPL, CMF have stayed positive for 5.5 weeks.


Here is CMF read :


DOW 0.244


S&P 500 0.300


Nasdaq 0.309


General sentiment remains poor, Individual investors are only 22% bullish. Sometimes extreme pessimism is positive for TAPE.


Earnings are missing Sales mark & guidance are generally weak.


IBD is changing their rating of market on a daily basis, Thursday after close IBD said "Market in confirmed UPTREND"....Friday after close they said "Market Uptrend under pressure".....so IF you feel confused about this market, you are not alone..."even technicians are changing their tune on a daily basis"


In my opinion, one should stay in this market, till it sorts itself out.


Stay with stocks which are unfairly beaten up, which IS the case with majority of stocks, all down 40% from their highs.


IF you see profit, it IS prudent to book immediately & go to your next best idea.


Markets are "never easy" but these days we have weakness around the world. News will continue to be "downbeat"........


Once you know that market will GYRATE on a daily basis, then you can play accordingly, either buy on weak days or sell on UP days.


All of us are swimming with loss for the year, the only way we can get ahead is to have a "realistic strategy", this differs based on investing or trading style.


It will be a gradual two step UP & one step DOWN market, better get used to it.


Good luck with your OWN strategy & comfort level.


BLOG does NOT give buy or sell.


Saleem

11 comments:

stocktrader_1996 said...

Hey Saleem,

I posted my portfolio and some thoughts on your Friday post (to not bog down this one). Please read and comment if you have the chance. Thanks! :)

Stocktrader

Stocks100 said...

Hi Stocktrader,

I have posted on your comment on Friday's post.

Thanks for your hard work in analyzing many aspect which affects stock market.

I would highly recommend all visitors to read your post on Friday's BLOG.....

Saleem

c said...

SALEEM

A fond Hello

Looking like we got one heck of a blow off coming

MCD is pooping all over the place --here comes $80

Looking at APPLE cratering--iPhone sales question?
China news is slapping our BIDU
My only green in CNQ--wow, go figure

Any guess on the close
Thanks for your blog
C

Stocks100 said...

Hi C,

Blame it on Spain,Italy & Greece AGAIN......

Does not look good for close either.

CNQ UP due to TWO takeovers by Chinese company in Canadian oil patch 50% premium from Friday's close.

Stay calm & stay the course.

Saleem

c said...

SALEEM

Thanks

stocktrader_1996 said...

Hey Saleem,

Took all morning to fill, but I sold my FIO at 18.95. Since it is a hardware product, I fear it could see a worse decline in earnings versus some of my service companies. Additionally, it is a high P/E stock and heavily shorted (during downturns the bears tend to be more correct).

Stocktrader

Stocks100 said...

Hi Stocktrader,

Re-evaluating positions on an ongoing basis is healthy when better opportunities are there.

Your hedges are timely for today.

Saleem

stocktrader_1996 said...

Hey Saleem,

Bought some TZA at 19.2499. This is the start of my switch into that hedge.

Stocktrader

Stocks100 said...

Hi Stocktrader,

I see that you have high conviction of further weakness from here.

Good luck with your strategy.

Saleem

stocktrader_1996 said...

Hey Saleem,

I'm not sure about short term--things could improve from oversold levels. The bigger issue is that my hedge wasn't hedging enough--I'm still down 0.6-0.7% today.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Your hedge is doing its job to a major extent..i am down 2.87%.....

Saleem