Indices closed @ lows after Q&A from Fed chief.
S&P 500 @ 1628.93
RSI @ 49.17
CMF @ -0.002
Internals were :
Down volume leading by 13.68 to 1 in NYSE & 2.56 to 1 in Nasdaq
Declining stocks leading by 5.79 to 1 in NYSE & 2.72 to 1 in Nasdaq
Net new 52 wk highs were leading by 20 in NYSE & 83 in Nasdaq
VIX UP .18% @ 16.64
Oil @$98.20
Gold @ $1374.00
AH ER :
MU Down 1.65%
RHT UP 3.42%
FNSR UP 12.12%
AH Futures Down
AH Asian Markets Down
AH Oil & Gold Down
About market, Fed Q&A was pretty much as i expected from my Sunday BLOG analysis. I do not understand why traders were "surprised". Timetable is defined by Fed, tapering starts by end of the year & eliminated by middle of 2014. Chinese Flash PMI came in @ 9 month low @ 48.3%. Hopefully S&P 500 may find support around 1600 area +-.
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hey Saleem,
There are serious problems in China right now with short-term funding. Coupled with the weak PMI overnight and there's really a growing storm over there. I hope the government steps in to calm the liquidity fears at least because liquidity crunches are worse than any kind of cyclical slowdown.
Any stock having to do with China could get crushed today (of course just a follow-on to months of selling already).
Stocktrader
Hi Stocktrader,
Yes Chinese economy is slowing down sharply...recession after 9 months is not good......
Hopefully it will prompt new govt to take notice & do something.
Saleem
Hey Saleem,
Bought GMCR @ 80.92 with my remaining cash (about a 2/3rds normal position). Based on recent comments from SBUX, I think GMCR's relationship as the equipment supplier is cemented and they have market leading position. They got a PT raise to $90 today and short interest remains extremely high.
Maybe this is a stretch, but I like how this diversifies me more and then some of the technical and fundamental setups look good despite this poor market overall.
Stocktrader
Hi Stocktrader,
GMCR is a strong stock.
Good luck$$$$
Saleem
Hey Saleem,
Sold CERN @ 95.03 to raise some cash for a bigger beta play once the market bottoms. It is also fairly expensive compared to its growth rate, and I don't have a good handle on how business is progressing right now.
I might try to add some materials exposure once the China liquidity problems are resolved.
Stocktrader
Hi Stocktrader,
Good idea to raise cash through CERN.
Saleem
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