Indices were trying to react to positive EU news, but earning warnings took a toll.
S&P 500 closed @ 1341.47
RSI @ 50.05
Internals were :
Down volume led by 4.43 to 1 in NYSE & 3.73 to 1 in Nasdaq
Declining stocks led by 1.98 to 1 in NYSE & 2.03 to 1 in Nasdaq
New 52 wk highs were leading, 198 in NYSE & 86 in Nasdaq
VIX UP 4.12% @ 18.72
Oil @ $83.91
Gold @ $1579.80
In my portfolio :
Sold COH
Portfolio is BIDU,LVS,NTES,JCP,TCK
AH Futures Down
AH Asian Markets Down
AH Oil UP
AH Gold Down
About market, IBD has changed its outlook tonight to "market uptrend under pressure". Dow has closed below 50 DMA. S&P 500 did dip below 50 DMA but closed above. Nasdaq stayed above 50 DMA & closed above. I believe that negativity is pretty high which is a "contrary indicator". I will not be surprised to see a turn UP in markets.
BLOG does NOT give buy or sell.
4 comments:
Hey Saleem,
We are definitely at a crossroads. Not only are we hovering right at the 50 DMAs, but we are also right at the bottom trend channel lines from the June move up. A break in either direction moves us 45-50 S&P pts quickly.
Even though apparently many earnings estimates/expectations are still high given the latest warnings and then subsequent price actions we've gotten, increasingly more overall negativity and pessimism is being priced in, which is a good offset.
I am not sure which direction we will go, but I'm looking to definitely pare back long exposure tomorrow either through selling or hedging or both. There will be plenty of time to unwind those moves if the direction becomes clear to the upside.
I am trying to get into the head of a CEO at this time, and I'm not sure how you can justify major expenditures at this time ahead of the fiscal cliff--that's got to be weighing heavily and there is almost zero chance of resolution until after the election. At least if the stock market/economy deteriorates from here, the market may start to price in a Romney win, which may provide support (along with Bernanke?--just not sure what more he can do).
Game planning tonight...
Stocktrader
Hi Stocktrader,
Good contra analysis.
Saleem
Hey Saleem,
So far I've sold PAY (on a huge pop!), FIO, and APKT, and bought a largish chunk of SQQQ as a hedge. Right now the portfolio is rising slowly with the rising market, so I'll move slower from here and evaluate.
Stocktrader
Hey Saleem,
Sold the SPLK also. I'm getting close to very comfortable with the porfolio now.
Stocktrader
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