Sunday, August 12, 2012

This week indices may pause.........

Now that we have firmly stayed above 1400 for four days on a closing basis, maybe its time to pause.

This week is option expiry, which may create more volatility than normal.

Sentiment has swung back to "major comfort level with this market"...this always put me in cautious mode.

CMF is stuck in lower end @ 0.124 vs 0.30 entire July.

RSI is @ 64.78...70 is a major resistance

Advance decline ratio is quite narrow

New 52 wk highs on the low end 

There seems to be a resistance in 1422 area also which is 16 points away.

The point i am trying to make, that in short term market is extremely vulnerable to pullback.

Risk / Reward is NOT good in the short term.

On a long term basis, 1500 is what we are looking @.

In coming days, i may be looking @ reducing my exposure "substantially"

This is a trading call which i am making, for long term investors, market remains a "very good place to be"......

What you do is based on your OWN interpretation of this market.

Last week was my "best week in two years"......

Tendency is to protect any gains which happens quickly.

We are waiting for "news" from China & ECB....IF that happens, we may reach the high end of trading range in a hurry.....means...sell the news.......

BLOG does NOT give buy or sell.

Saleem


7 comments:

c said...

HELLO Saleem

Good talking points in your blog

I to am scared as to how fast we have climbed in 2 weeks---:):):)"
Soooooo what is next, I will reduce my margin
sell what I can and keep apple stock and collect teh divi and hopefully some appreciation!!!!!!!!
The iTV is being released with SIRI and Aluminum frame with voice commanded to change channels and do searches... I love gadgets... Do you

I will stay with REITS and SDRL, SCCO and income Funds.

Now that USA politics are set --I am hoping for stock traction --no mystery between the 2 parties.

Very best to all--good luck
C

Stocks100 said...

Hi C,

Thanks for your feedback.

I want to monitor everything in "gadget world"...but generally avoid buying most things.

Politics will be a negative for stock market in the short term.....

Once the winner is known through polls..then rally.....

Do whatever feels comfortable & part of your plans in terms of sale......

Saleem

c said...

SALEEM

Do ya think that AUY is at a plateau and we should sell it here????

Or wait???

thanks
C

Stocks100 said...

Hi C,

AUY is to be kept.

Saleem

Stocks100 said...

Hi C,

IF you feel like booking profit in AUY..then go ahead.

Saleem

c said...

SALEEM

Oh poop

Sold my AUY for $475 profit

Itchy finger

Looking at BIDU action for today APPLE is rocking
BIDU is in the hurt locker


Thanks for your input as always it is GREAT
C

Stocks100 said...

Hi C,

$450 in 72 hrs is not bad...

Watch for...how we close today..it will be more telling for next day.

Saleem