Money managers are most bullish since Dec 2010, but volume has been tapering off for few months.
Most technicians are NOT bullish in the short term.
Technicians expects VIX to jump.
BUT...market TAPE does NOT reflect that weakness, we are either going UP or building a major base since April 2012. We have stayed @ current level since April, five month of base building generally results in a "breakout"....
Any breakout may take us near 1500 in S&P 500.
Major "support" for this TAPE is around 1350 area.
How to play this TAPE is the same way......position to book profit & then re-position for potential gain in other attractive stocks.
Exposure needs to be reduced, as i have done.
It IS important to be CONSTRUCTIVE in this TAPE, but CAUTION is warranted.
Market IS expecting "major resolution" in European debt crisis.
ECB action may be "criticized as not enough", but it will be "step in right direction"
RSI sitting @ 56.13...this has room to go to 60+ area, touching of 70 has been bearish.
My suggestion is to stay with "profitable ideas"...but book profit, or else profit will be vulnerable to any pullbacks.
YES....we are near "top end of this range"......exposure needs to be reduced.
It is NOT about being right, but managing risk / reward ratio, currently reward is not so high.
Good luck with your strategy & comfort level.
BLOG does NOT give buy or sell.
Saleem
7 comments:
Hey Saleem,
A small negative note on the casinos today:
08:45 EDT LVS, MPEL, WYNN, MGM Macau August revenue below expectations, says Wells Fargo
Wells Fargo notes the Macau government reported gaming revenues for August of $3.3B, equaling 5.5% year-over-year growth, below consensus estimates of 7%-9% growth. Wells expects Macau gaming stocks to be marginally down on the results.
Stocktrader
Hi Stocktrader,
Thanks for this important info.
Saleem
SALEEM
LVS is not doing well today
LES is a goodie
Look at my SFL ---flying again here come $17
This market simply will not correct?
Hmm
BTA
C
Hey Saleem,
$RUT trading near the flatline--great sign for the markets! :)
PANW, FIO, YELP leading the charge for me--I'm up over 1% overall despite the averages.
Stocktrader
Hi C,
LVS is coming back.
I am glad some of your stocks are flying....
Saleem
Hi Stocktrader,
I am doing exactly reverse of you..down 1% so far
Saleem
Saleem
The close is the tell
So far awesome
C
Post a Comment