Tuesday, April 30, 2013

All indices closed @ absolute high of the day....NICE !!!!!

Indices showed technical strength by closing @ the highest point in all major index, an absolute rarity.

S&P 500 @ 1597.57

RSI @ 61.63

CMF @ 0.249

Internals were :

UP volume led by 1.63 to 1 in NYSE & 2.12 to 1 in Nasdaq

Advancing stocks led by 2.02 to 1 in NYSE & 1.55 to 1 in Nasdaq

Net new 52 wk highs were leading by 290 in NYSE & 125 in Nasdaq

VIX Down 1.39% @ 13.52

Oil @ $93.46

Gold @  $1472.10

Stocks which were UP 2% or more included BBRY AUY 
AAPL FB CLF SU GG EGO AEM SLW MA FSLR 
CCJ SINA IBN....

AH ER :

AUY Down 1.95%

FIRE UP 9.92%

AH Futures Mixed

AH Asian Markets Mixed

AH Oil Down 

AH Gold UP

About market, We are sitting @ absolute new high for S&P 500 both on intraday & closing basis. TAPE wants to go higher to make more highs. It is important not to get caught in euphoria & keep an eye on VIX & RSI for overbought conditions. To minimize risk booking profit is the logical thing to do. Chinese official PMI came in lower than expectations 50.6% vs 51.0% expected for April. I do not believe that it will affect US market & we may make a contra move UP to confuse skeptics.

BLOG does NOT give buy or sell.

Saleem

6 comments:

stocktrader_1996 said...

Hey Saleem,

I actually listened to FIRE's conference call. It was interesting to hear the perspective from another software security company, but mostly I was trying to find out about the general spending landscape for security products.

FIRE mentioned specifically how government spending is still mostly frozen as agencies try to figure out how to spend in their reduced budgets, although they expect them to have it figured out by second half.

They also talked up their anti-malware product which is winning them deals. They even mentioned they competitively won contracts against PANW.

Overall I thought the guidance was weak (and full-year back-end loaded), but apparently the street thought it was a good enough reset to move incrementally higher in future quarters. **This is a recurring theme among many growth industries like technology, industrials, and materials.**

I mean, if we can make a strong move higher on a 49.0 Chicago PMI, you have to be on board with this market.

Stocktrader

Stocks100 said...

Hi Stocktrader,

I am glad you listened to cc of FIRE.

Interesting info on spending trend & its impact on many companies.

Saleem

stocktrader_1996 said...

Hey Saleem,

I was really looking at Z for a while based on the natural ability to monetize mobile in the online housing space. I wonder if I'm too late now based on the bump from TRLA...

Stocktrader

Stocks100 said...

Hi Stocktrader,

Z went from 52 wk low to 52 wk high now......maybe other housing stocks are looking better after recent pullback.

Saleem

stocktrader_1996 said...

Hey Saleem,

I couldn't take it anymore on gold, copper, and oil all severely selling off so I sold the FCX @ 30.00. I bought Z @ 61.25 with those proceeds. Looking at the chart, the consolidation between 50-60 was almost two months, so this breakout above could have legs.

Stocktrader

Stocks100 said...

Hi Stocktrader,

FCX has gotten into 3 different business Gold, Copper & Oil.....thus lethargy in stock prices.

Good luck with Z......

Saleem