Indices pulled back again due to weak data.
S&P 500 @ 1541.61 low today 1536.03, 50 DMA 1543.04
RSI @ 44.84
CMF @ 0.193
Internals were :
Down volume led by1.36 to 1 in NYSE & 3.13 to 1 in Nasdaq
Declining stocks led by 1.25 to 1 in NYSE & 1.56 to 1 in Nasdaq
New 52 wk highs were leading in NYSE by 9 BUT new lows were leading by 30 in Nasdaq
Oil @ $87.73
Gold @ $1392.50
AH ER :
ISRG Down 3.01%
IBM Down 4.3%
LSCC Down 5.67%
GOOG UP 1.42%
MSFT UP 2.67%
CMG UP 3.54%
AH Futures UP
AH Asian Markets UP
AH Oil & Gold UP
About market, we had 3.84% pullback in S&P 500 in five trading days which should hold for now. Earnings tonight is better than last few days which should give a boost to positive TAPE action. It is important to find your own niche in this jittery environment. Friday is Option expiry for week & month BUT it may give boost to upward momentum.
BLOG does NOT give buy or sell.
Saleem
18 comments:
Hey Saleem,
Added a little PFPT today on the MSFT news about great Office 365 adoption.
I am looking to buy some more things by close including possibly RDN, SPLK, RALY, AXLL, and/or FCX.
Stocktrader
Hey Saleem,
Got the SPLK for 40.186--working on the others but will try to be patient. I think there's still a whiff of distribution in the air...
Stocktrader
Hi Stocktrader,
www.stockconsultant.com is showing breakdown for RDN @ $9.68 with a target of $8.09...FWIW
Good luck with your purchase.
Saleem
Hi Stocktrader,
I think morning hesitation was due to margin call selling...TAPE is OK now.
Saleem
Hey Saleem,
Thanks for the info on RDN. It has performed really well into the financial weakness of late so I like it.
Bought CSOD @ 32.938--I may have chased this too high, but I think these major players like IBM, SAP, ORCL will need to make more add-on purchases to improve their comprehensive offerings given the disaster in all of their earnings.
Stocktrader
Hey Saleem,
Bought RALY @ ~17.37 and MRIN @ 14.828 on the same software theme.
Stocktrader
Hi Stocktrader,
MRIN has come down to lowest level....attarctive buy.
Saleem
Hey Saleem,
I really feel like putting a hedge on to protect my positions. To me, it seems like people will want to sell into rallies for a while until we see more data.
Stocktrader
Hi Stocktrader,
I know you like to do that when you feel vulnerable...but this is a trading bottom...it may go against you?
Saleem
Hey Saleem,
I really feel like the consumer is under pressure from lackluster jobs growth and a reset of their income from the expiration of the payroll tax holiday. Also, the situation in Boston does not help that sentiment and even with quick resolution may linger in people's minds for a while.
Given all this, I think the housing, autos, and retail spending may languish for some months. That would break the thesis of many bulls, and if we add in the sluggish activity in both Europe and Asia too, I fear a greater pullback as we look at GDPs closer to 1% in Q2 and Q3 potentially.
That's the situation I want to protect against.
Stocktrader
Hey Saleem,
I think many companies are substituting a person hire due to questionable demand outlook and healthcare responsibilities and instead are buying software to replace some/all of the tasks those people would have done.
This is a big reason I like the enterprise software sector as a secular growth story for many years and wonder if we'll see another jobless recovery from this level.
Stocktrader
Hi Stocktrader,
All of those points are valid for Q 2 & Q 3.....that is why market will remain jittery until October....
I have my reasoning to believe that we may trade in a narrow range until..like 1500 to 1570 in S&P 500.....
Saleem
Hey Saleem,
I did just buy some TZA @ 40.90 for protection. I feel better now! :)
Stocktrader
Hi Stocktrader,
It is all about ones own comfort level......
Good luck with protection.
Saleem
Hey Saleem,
The last two I wanted to buy today, AXLL and RDN, are still at highs and getting higher even. I hate when that happens!
Stocktrader
Hi Stocktrader,
IF you want it... go for it...price is relative.....
Saleem
Hey Saleem,
Sold SRPT @ 33.418 due to underperformance in both the overall market and its industry. The thesis isn't taking hold and so a longer resting period might be necessary until we start anticipating the next piece of news again.
Stocktrader
Hi Stocktrader,
It is a good idea to constantly monitor relative performance & take the next step.
Saleem
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