Here we are, indices are below all technical support & majority of stocks are breaking down, not a scenario for optimism......
We all know which group has taken to or are responsible for this technical breakdown.......
Knowing the players who love being on TV but never accomplishing task @ hand, will take this market to lower level.
Currently weak support is in 1350 to 1360 area......
Major support is around 1320 area with 1290 area as line in the sand....
These support level seems given based on history of US politicians, waiting for last second for token deal & pushing everything to another Super-committee to report in 90 days.......
SO based on history, it is important to adjust to this ongoing reality till Christmas week.......
I am looking @ seven weeks of well defined negativity......
What we can do in the meantime is :
-Sell the under-performing stocks ASAP
-Sell the rally
-Keep reducing exposure
-Those who are brave enough VIX can be a good contrary position.
-Book "small profit ASAP"
It IS important to understand this ongoing Wall Street wisdom "NEVER FIGHT THE TAPE"
I have already started reducing exposure & will do more to be @ a "higher comfort level"
Good luck with your OWN analysis & comfort level.
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hey Saleem,
It is a sad situation that it comes to this, but those prepared should be able to take advantage well of the opportunities ahead.
I'm nervous and excited at the same time given my positioning, but mostly I just want things to work out for the economy. I fear a lot of people might get hurt here...
Stocktrader
Hi Stocktrader,
I wish it was more humane & focused.
Any way..we all have to face what is being dished out.
Saleem
Hey Saleem,
Sold approximately half of CRUS (the only part I could sell based on the 3-day rule) at 31.19.
Stocktrader
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