Indices were pushed down on US economic data & threat from North Korea.
S&P 500 @ 1553.69, low today 1549.80
RSI @ 53.51
CMF @ 0.274
Internals were :
Down volume led by 5.93 to 1 in NYSE & 4.82 to 1 in Nasdaq
Declining stocks led by 3.63 to 1 in NYSE & 3.41 to 1 in Nasdaq
Net new 52 wk highs were leading by 63 in NYSE & 5 in Nasdaq
VIX UP 11.19% @ 14.21
Oil @ $94.45
Gold @ $1553.50
AH Futures UP
AH Asian Markets Down
AH Oil & Gold Down
About market, tonight IBD is changing its market outlook to "market under pressure". Internals were weakest in a long time which requires caution towards market. It is important to evaluate your exposure in this environment which is heading towards "seasonally weak period". It is not wise to wait for May to trim position, sometimes weakness can start early or TAPE can get choppy. It is also "critical" to have extremely high comfort level with your picks going forward.
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hey Saleem,
I think I'm going to do some major selling today. It appears the economy is going through a bit of a reset to a lower level based on companies' hiring/firing moves given the sequester and healthcare law.
I have two kinds of stocks in my portfolio--those stocks tied to the economy which have earnings at higher risk and those stocks in secular bull trends but which have run a lot this year. Both of these kinds of stocks can be vulnerable here.
I'm not sure how much downside there is currently, but it seems the upside is limited, so it might be a good time for a portfolio cleaning until the stock setups are better.
Stocktrader
Hi Stocktrader,
I think you are on the right track with a good analysis of risk / reward.
Good luck
Saleem
Hey Saleem,
Sold everything except RDN (which I can't sell yet since I bought yesterday), MRIN (because I feel accumulation and catalysts are upcoming), and APWC (since I've always held it and feel it remains well undervalued). On a pop today, I'd sell MRIN also.
Stocktrader
Hi Stocktrader,
Best time to be "overweight in market are from end of October to March"
It is important to have high comfort level.
Saleem
Hey Saleem,
I'm out of town the rest of the week. Good luck with the market tomorrow! :)
Stocktrader
Hi Stocktrader,
Enjoy your trip......
Will miss you around here.....
Saleem
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