Friday, September 28, 2012

Indices closed down .36% to .65%.....

Indices were under pressure before open as EU story was perking up again.

S&P 500 closed @ 1440.67

RSI @ 53.53

CMF @ 0.031

Internals were :

Down volume led by 2.83 to 1 in NYSE & 1.50 to 1 in Nasdaq

Declining stocks led by 1.55 to 1 in NYSE & 1.89 to 1 in Nasdaq

Net new 52 wk highs were leading by 119 in NYSE & 40 in Nasdaq

Oil closed @ $92.19

Gold closed @ $1773.90

Canadian $ closed @ 101.68

Portfolio is BIDU,DNKN,EXPE,LVS,LEN,RIMM,YHOO

Stocks which closed green included BIDU,RIMM,
SNDK,AEM,M,LNKD,FB,AGU,COH,V.....

Next post by 2 PM Sunday.

BLOG does NOT give buy or sell.

Saleem

2 comments:

stocktrader_1996 said...

Hey Saleem,

I was only up one day all week, but those gains on Thursday helped limit the portfolio losses this week to only about 1%. Here's the current portfolio:

GWAY - 10.1%
FIO - 8.3%
SPLK - 8.3%
GGC - 8.2%
PFPT - 8.1%
CRUS - 7.9%
GHDX - 7.8%
WPRT - 7.8%
ELOQ - 7.8%
PANW - 7.8%
APKT - 7.4%
LF - 4.1%
OCZ - 3.9%
APWC - 2.3%
(cash) - 0.1%

It is apparent that many of my stocks are going through resting periods, and competition and valuation concerns are hitting some of my next-generation tech plays like SPLK and PANW. The big chargers this week were ELOQ and GWAY (and I ended up taking some ELOQ off) and it definitely helped they were they largest positions also. Ever more so now it is just specific stocks that are moving, so I am looking for more new ideas like LF.

The market overall still feels like rest is needed. When you get four down days and just one big up day in a week, it is symptomatic of underlying weakness and institutional selling. I suspect this is a function of upcoming uncertainty in the US while Europe and China remain weak for now. While I do not expect a quick US solution to fiscal cliff worries, I do believe China (and Europe possibly) could start to show better economic activity which could offset. I think this means we'll continue to see higher volatility as markets adjust to the balance of these themes.

Earnings season is now nearly upon us, and I think we'll continue to see companies execute well, driving earnings power despite a sluggish sales environment. Although some input costs like food may have been higher, really the main driver of margins for most of these companies is increasingly efficient use of labor with the aid of new technology. Sticking with well-run companies should continue to bear profitable fruit.

My plan for the next week is to take a closer look at my current and prospective stocks and identify those with real catalysts and drivers for the next month+. In a potentially sluggish overall market, just letting stocks slide can't be an option because they'll create drag on the portfolio. I really don't have plans to put the hedge back on yet, but it is under consideration also. Hopefully I find enough good stocks and the market is ok enough that a hedge isn't needed.

Enjoy the rest of the weekend! :)

Stocktrader

Stocks100 said...

Hi Stocktrader,

Nice analysis of all the cross-current & portfolio impact.

Good luck with your strategy.

Saleem