Friday, September 7, 2012

Indices closed UP.02% to .40%....AGAIN !!!!

Indices closed UP again. Volume remained above average. This despite below consensus 96K job creation. In Canada Job creation was way above consensus, expectations 10K actual 34.3K.....

S&P 500 closed @ absolute high of the day.

S&P 500 @ 1437.92

CMF 0.246

RSI @ 69.34

Internals were :

UP volume led by 2.49 to 1 in NYSE & .96 to 1 in Nasdaq

Advancing stocks led by 2.11 to 1 in NYSE & 1.32 to 1 in Nasdaq

Net new 52 wk highs were leading by 273 in NYSE & 121 in Nasdaq

VIX Down 7.82% @ 14.38

Oil @ $96.42

Gold @ $1740.50

Canadian $ UP 48 tick @ 102.23, new 4 month high...

In my portfolio:

Sold OCZ

Bought SNDK @ $43.80

Added 50% EXPE @ $53.97

Portfolio is EXPE,LVS,LEN,SNDK,TCK

Here is my portfolio weighting :

LEN  27.60%

EXPE 22.00%

LVS  18.62%

TCK  16.78%

SNDK 15.00%

Exposure 94%

Stocks which were UP 2% or more included LVS,TCK,
OCZ,YUM,CMG,PCLN,LULU,FCX,AMZN,GG,
COH,CLF,SU,GMCR,JDSU,CIEN,FNSR,C,X,
STLD,EGO,AEM,CCJ,APKT,SINA,ECA,MGA,
BAC,MS,BJRI,SNE,GS,IBN.....

Next post by 2 PM Sunday

BLOG does NOT give buy or sell.

Saleem

5 comments:

c said...

Saleem

we had a heck of a rain storm
All is well --no electric for 2 hours

We gotta check China and hope that they stimulate there economy today??? hope
BIDU need a push up--or two :)

Lets rock
I finished Steve Jobs book--what a radical he was
C

Stocks100 said...

Hi C,

Hope everything is back to normal in DC area.

BIDU TAPE is "extremely weak"..its hanging near support....watch it closely......

Steve Jobs was a GENIUS ..few could parallel EVER....

Saleem

stocktrader_1996 said...

Hey Saleem,

So ended an extremely disappointing week for me with ADNC dropping nearly 62% and P dropping 12.7% both before I could sell them. Although some offsetting gains from PANW (+9.9% and overweight much of the week), SPLK (+11.3%), YELP (+12.8% and a positive flip adding ~4%), and OCZ (+15.3% from purchase), I still ended down nearly 1% overall on the week. The portfolio looks like this now:

NTAP - 9.5%
GWAY - 8.9%
FIO - 8.8%
GGC - 8.8%
SNDK - 8.7%
PANW - 8.6%
ELOQ - 8.5%
SPLK - 8.5%
GHDX - 7.5%
PFPT - 5.1%
OCZ - 5.1%
YELP - 4.9%
GRPN - 4.7%
APWC - 2.3%
(cash) - 0.1%

Many of the major positions are similar in size, so any order at the top is not particularly relevant, but there is a clear weighting distinction between the more speculative stocks in the portfolio. PANW is reporting earnings after the bell on Monday and I'm expecting beat and raise. In retrospect, I probably should have kept the overweight in PANW for one more day at least. YELP I am expecting positive buzz this week surrounding AAPL's launch. SPLK is extremely overbought with RSI = 81.43 so I am carefully watching, but the stock continues to perform for now. Despite OCZ's great gains this week for me, I'm not looking for much right now, but a new NAND flash supply agreement could be a positive catalyst (as well as a buyout of course). SNDK is a new and exciting purchase I made late in the week.

Overall, the market will be dealing with major events this week in the Fed meeting and the German constitutional court decision, both on Wednesday. As for the Fed, many are expecting new QE based on the lower-than-expected jobs report. I think the market risk is to the downside for this event given that no QE would be a negative short-term and yes QE would be a longer term negative since the Fed would really be done for a while then. I would actually prefer the no QE as it would speak to the slowly improving world sentiment and still keep the Fed with options. I have no insight into the German decision and possibly the market sees pre-event weakness Tuesday, especially in Europe, related to this.

Despite many investor sentiment readings getting more bullish, I still feel like people are underinvested, especially after the two profit-taking weeks we had prior to Thursday. That makes me want to be bullish, yet I still worry about events this week and the upcoming pre-fiscal cliff budget tightening. Watching the technicals is still the key, but I may lighten up some highly overbought stocks on Monday ahead of events.

Commodity stocks had a HUGE run on Friday after China *finally* announced stimulus spending measures. Even though I've often been in commodity stocks, I don't know what to make of them now. Many of those stocks had major runs on Friday (10-15%), but is this the extent of the gains now that China has no more surprises in store? Given the ongoing ramp of supply in many commodities from projects started years ago, I'm not willing to pile on now and will just take a wait and see approach for further direction.

It should be an interesting week ahead! :)

Stocktrader

stocktrader_1996 said...

Hey Saleem,

Correction: The Fed meeting is two day and therefore ends on Thursday.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Despite major plunge in two stocks, you came out more than OK......beauty of diversification.

Saleem