Indices were in intense selling pressure until close.
S&P 500 closed @ 1394.53
RSI @ 37.01
CMF @ -0.104
Internals were :
Down volume led by 10.16 to 1 in NYSE & 7.37 to 1 in Nasdaq
Declining stocks led by 4.52 to 1 in NYSE & 5.85 to 1 in Nasdaq
Net new 52 wk lows were leading by 8 in NYSE & 70 in Nasdaq
VIX closed UP 8.53% @ 19.08
Oil closed @ $84.44
Gold closed @ $1714.00
AH ER :
WFM Down 1.96%
QCOM UP 7.81%
AH Futures UP
AH Asian Markets Down
AH Oil & Gold UP
About market, today was a culmination of Romney defeat, Mario Draghi comment about Germany. Barak Obama victory did not sit well with HF / Bankers also. Republican's in a televised press conference showed willingness to work with Re-elected President. Reaction was half as bad as last victory of President Obama when Dow plunged 5.1%.Today was an over-reaction to above mentioned. I believe market will be back to building its momentum again.
BLOG does NOT give buy or sell.
Saleem
17 comments:
Hey Saleem,
I'm starting to wonder if we can really see sustained buying in the market the next two months as we watch the back-and-forth hard bargaining concerning the fiscal cliff issues. Even the conciliatory tone struck yesterday showed the difference in views between the two parties, and we know they'll negotiate down to the wire.
I might lighten up on a few positions and get some hedging going again to protect against the downside. The increased frequency and magnitude of big down days is troubling.
Stocktrader
Hi Stocktrader,
There is no doubt that its all about ego & gamesmanship between two parties.
Everyone can see through their PR BS..it is all about "face time on TV"
BUT by Dec 31st.....they will all huddle & show their true cards to bargain away & push tough decision to next 90 days.....that is how it goes in "USA"........they are never UNITED for the good of the country......
Do whatever feels right.....
Saleem
Hey Saleem,
Agreed. We probably get some kind of Christmas Eve compromise or something. The question is what happens to the market until then? I'm worried. I thought the election would solve the problems, but I'm realizing we still have a long road ahead of us this year.
Stocktrader
Hi Stocktrader,
Market knows it will be a "token compromise @ last second" to fight another day.....
Market should be OK as this game is played over & over......
Saleem
S
the politicians will do what they always do
We will see kick the can down the road till 2014
just MHO.
I say hunker down hope for best and watch my APPLE get creamed..
RNF is coming to daddy
C
Hi C,
You are 100% right......
RNF is looking very good$$$$$
Saleem
Hey Saleem,
Tuesdays/Thursdays are my multiple morning commitment days so I just got back from #2 (and it is hard to get in the market flow for a while). Right near open I sold MLNX at 82.53 and PANW at 54.24 and bought TZA at 16.43 with all those funds . These are my first hedging steps.
Stocktrader
Hi Stocktrader,
Good luck with TZA.....
Saleem
Hey Saleem,
Sold GGC 39.65 and APKT 18.3716. Bought TZA 16.53 after chasing it around a lot--probably got the worst fill there.
Stocktrader
Hi Stocktrader,
You must be overweight in TZA.....
Saleem
Hey Saleem,
Highly so--it is 33.2% of the portfolio now. For one, I've got pretty high beta stocks to protect so they need a lot of firepower to actually be protected, but also my view on the market is not very constructive, although I do realize we are pretty heavily oversold.
Stocktrader
Hey Saleem,
Sold SNDK 42.51.
This leaves me with ELOQ, FIO, CF, GWAY, TM, CRUS, SPLK, PFPT, APWC. I'll be selling TM tomorrow when it becomes eligible to do so.
I'm not sure I want to buy more TZA at these levels, but I'll be looking for future opportunities in either that or other oversold stocks.
Stocktrader
Hi Stocktrader,
Always good to go with your gut.....a leading indicator of what comfort level is all about.
Good luck with your strategy.
Saleem
Hey Saleem,
$VIX looking really low--we may get that bounce yet...
Stocktrader
Hi Stocktrader,
YES VIX is down..but you never know after a breakdown like yesterday.....
Sold RVBD...do not like making lower lows.....
Saleem
Saleem,
It appears to me that S&P 1380 is the line in the sand. Any thoughts?
Victor
Hi Victor,
As DOW & NASDAQ is below 200 DMA...there is no reason why S&P 500 should hold above....
I say 1350 to 1360 is support in S&P 500....
Good luck...
Saleem
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