Indices had a reversal after a long time.
S&P 500 @ 1511.95
RSI @ 56.79
CMF @ 0.255
Internals were :
Down volume led by 9.72 to 1 in NYSE & 6.01 to 1 in Nasdaq
Declining stocks led by 3.24 to 1 in NYSE & 3.65 to 1 in Nasdaq
Net new 52 wk highs were leading by 243 in NYSE & 145 in Nasdaq
VIX jumped 19.25% @ 14.68
Oil @ $95.22
Gold @ $1578.00
AH Futures UP
AH Asian Market Down
AH Oil & Gold Down
About market, IBD is changing its market outlook to "market under pressure". Fed minutes were taken as " policy statement" which it is not. Fed is facing a balance sheet of $3 trillion & additional $85 billion in monthly purchases. In meetings it is their responsibility to discuss pros & cons of their effort & its impact. Yes several members are leaning towards "easing some of their buying commitment"......as they feel that it is going to hurt US economy in the long run, but Fed chief & majority is saying "easing of buying will hurt US economy". I believe that majority of traders "panicked & punched sell button". Market should find its footing by close on Thursday as Fed noted US economy improved in Q4.
BLOG does NOT give buy or sell.
Saleem
10 comments:
Hey Saleem,
We have seen this before where everything seems to turn bad on one day--Fed minutes, China property curbs, weak housing starts/TOL report, front page sequestration news. You then get all the weak hands out and resume the uptrend--I wouldn't be surprised either to see the market regain tone shortly. Lots of my smaller stocks went up today--I think the underlying positive backdrop still remains but certainly some individual stocks were way, way overbought.
Stocktrader
Hi Stocktrader,
Panic selling completes pullbacks in a hurry.
Chinese stocks are taking on the chin tonight to the tune of 3%....
Pullbacks are healthy & reasons are "suspect most of the time"
Good luck for Thursday !!!!
Saleem
Hey Saleem,
Bought CF @ 200.38! Very pleased with that, especially having sold ~227 a couple weeks ago.
Stocktrader
Hi Stocktrader,
Excellent entry in CF......
Saleem
Hey Saleem,
Sold MLNX @ 52.56. I have been doing more research since the speculative purchase, and various competitive factors leads me to believe growth estimates are still at risk to the downside. I'm not sure the takeover possibility is as high as I thought either, so given all this, I exited the position.
Stocktrader
Hi Stocktrader,
MLNX had moved UP substantially already.
Always good to re-evaluate.
Saleem
Hey Saleem,
Bought a speculative position in HLF @ 36.79. Given what I thought before, and then the better-than-expected earnings, coupled with the price dropping another 10% (to where Icahn has been buying before), I'll take a flier on it now. I am obviously more than just a little nervous, but that might be even more reason to buy? The position size is the lowest of any of my stocks besides APWC.
Stocktrader
Hi Stocktrader,
Sometimes "speculation works way better than non-speculative stocks"
Good luck with HLF.
Saleem
Hey Saleem,
Bought AXLL @ 54.108 after selling ~60.55 just two days ago. Based on the inventory numbers today in the existing home sales report, we need so many more homes built, and AXLL benefits from low nat gas prices also. Additionally, I think there's a likelihood that the synergy savings come in above expectations just due to conservatism in guidance.
Stocktrader
Hi Stocktrader,
Buy low sell high is working for you.
Good luck with AXLL.
Saleem
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