Indices continued their southbound trend by closing mostly lower.
S&P 500 @ 1428.59, barely hanging above 50 DMA @ 1428.38
RSI @ 43.31
CMF -0.222
Internals were :
Down volume led by 3.13 to 1 in NYSE & 1.45 to 1 in Nasdaq
Declining stocks led by 1.76 to 1 in NYSE & 2.02 to 1 in Nasdaq
New 52 wk highs were leading in NYSE by 57 & lows were leading in Nasdaq by 9
VIX UP 3.53% @ 16.14
Oil closed @ $91.86
Gold closed @ $1759.70
Canadian $ closed @ 102.11
Portfolio is APKT,BIDU,LVS,LEN,PANW,RIMM,YHOO
Stocks closing green included BIDU,LVS,LEN,PANW,
DNKN,CMG,LULU,M,AAPL,MA,V,BRCM,SBUX,
MCD,ECA,WYNN.....
Portfolio weighting is :
YHOO 20.93%
LEN 18.85%
LVS 17.96%
BIDU 14.66%
PANW 11.61%
RIMM 10.27%
APKT 5.72%
Exposure 100%
Next post by 2 PM on Sunday
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hey Saleem,
This was a survival week in many ways and I feel like I accomplished that. Here's the portfolio now:
APKT - 9.2%
WPRT - 8.6%
FIO - 8.3%
GGC - 8.2%
PANW - 8.0%
GWAY - 8.0%
LF - 7.8%
CRUS - 7.7%
GHDX - 7.7%
SPLK - 7.1%
Z - 7.1%
PFPT - 4.8%
LNKD - 4.8%
APWC - 2.5%
(cash) - 0.03%
I continued to make adjustments for upcoming earnings season. I swapped out MNST and PRU to add SPLK, PFPT, LNKD, and more APKT. Increasingly I am comfortable with my companies' current and future potential.
Overall in the market we've seen six distribution days in a row (where the S&P closed below its opening price, indicated by SPY candles to get a truer opening print). This shows two things: that the rest of the world is improving as evidenced by high opening futures/market, but also that US investors are fearful of earnings and fiscal cliff.
At this point I feel we have discounted the majority of earnings sluggishness, but fiscal cliff uncertainty may weigh on Q4 guidance and market sentiment until the election, when we finally will have some clarity on potential resolution regardless of the winner.
This is a big earnings week with many bellwethers in technology and industrials. How individual stocks react to possibly sluggish Q4 guidance will be key in determining the overall market's next direction. Obviously, earnings season is also a differentiator among stocks, so being in the right names should prove fruitful even in a tough market tape.
Ultimately, I feel like the world is an improving place and yet investor sentiment has turned sour quickly. It is a battle between short-term traders that have no impetus to invest prior to earnings results given some warnings we've already seen and elections or fiscal cliff resolution yet to come, and those long-term investors that realize the value we see now against the backdrop of an improving world and that the fiscal cliff will be a distant memory in six months. What shape this battle takes this week I'm not sure, but I continue to believe that companies in secular growth areas should see the best inflows. In that vein, you see most of my picks in next-gen technology, mobile/tablet proliferation, leading social networking sites, housing, and abundancy of natural gas. I am willing to look past short term weakness in order to maintain exposure to these areas.
Have a great close to the weekend! :)
Stocktrader
Hi Stocktrader,
Good focus for long-term gains.
Saleem
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