TAPE was impacted by data deluge. Fed beige book was more positive for economy. Indices closed near low of the day.
S&P 500 @ 1608.90, low 1607.09...came awfully close to 50 DMA @ 1604.17
RSI @ 42.32
CMF @ 0.107
Internals were :
Down volume led by 8.19 to 1 in NYSE & 5.49 to 1 in Nasdaq
Declining stocks led by 4.40 to 1 in NYSE & 3.57 to 1 in Nasdaq
Net new 52 wk lows were leading by 62 in NYSE & new highs were leading by 11 in Nasdaq
VIX UP 7.56% @ 17.50
Oil @ $93.74
Gold @ $1398.50
AH Futures UP
AH Asian Markets Mixed
AH Oil & Gold UP
About market, RSI in S&P 500 has reached the lowest level since Dec 2012 which has been the trigger for rally in the last six months.Nikkei went down to 12896.10 tonight & is trying to rebound. Nikkei has lost 3046.50 points in this slump or down 19.11%.S&P 500 also had a fast drop in 10 trading days of 80.09 points which is a drop of 4.75%. It is a fair conclusion that we are all set for a technical bounce again.
BLOG does NOT give buy or sell.
Saleem
15 comments:
Hey Saleem,
Sold M @ 47.63. I'm a little more concerned about the middle class consumer than I was before, and weather effects have been pronounced so far this quarter making the chance of miss higher I believe.
It is a high quality company so I may buy back at a lower price.
Stocktrader
Hey Saleem,
Sold F @ 15.31 for similar reasons as M. Additionally, I think it could see some pressure from portfolio managers raising cash for the GM secondary.
Stocktrader
Hey Saleem,
Other potential problems with F are the really weak yen helping Japanese manufacturers competitively, and the fact that a sluggish consumer could leave all these automakers with overhanging inventory due to their change in plans to not decrease auto production as customary in summer.
It just seems like too much good news is priced in right now.
Stocktrader
Hi Stocktrader,
Booking profit never hurts.
Saleem
Hey Saleem,
Sold RALY @ 21.38 ahead of earnings tonight. These high valuation companies always seem to disappoint the street in their first earnings call. Even if things look good, I want a clean slate to evaluate especially after this nice run.
Stocktrader
Hi Stocktrader,
Based on your analysis then HMC & TM should benefit.....
Saleem
Hi Stocktrader,
RALY has been good to you $$$$$
Saleem
Hey Saleem,
I think it is really difficult to pick out any automaker stock right now due to questionable consumer demand I think. With HMC & TM, even if you just want the weak yen play, you have to buy them in dollars, which negates some of your benefit.
Stocktrader
Hey Saleem,
The investor sentiment numbers from Tuesday just got posted to my site. There was a *huge* shift. I was going to load back up ahead of tomorrow's number, but this really confirms it for me--people got too negative too fast:
http://www.schaeffersresearch.com/streetools/market_tools/investors_intelligence.aspx
Stocktrader
Hi Stocktrader,
When indices give back 200 Dow points twice...there is good reason to pay attention.
Saleem
Hey Saleem,
Sold BAC @ 13.13. I feel like I'm just selling to sell, but in theory it's also a concern about a weak consumer/economy and a flattening yield curve again.
The USD/JPY is falling apart at the moment so I wanted some extra cash.
Stocktrader
Hi Stocktrader,
Good to book BAC profit & be ready for better stories.
Saleem
Hey Saleem,
I'm strongly looking at DXJ on this dip. It's a Japanese equity fund that is also short yen to hedge out currency risk. It is getting crushed today on a combination of the lower markets but also stronger yen. It may have some kind of huge washout that makes it extremely attractive by close.
Stocktrader
Hey Saleem,
This market has the same feel as when we flash crashed a couple years ago (although many things different). Liquidity is low due to the summer and the huge data point tomorrow. Currencies have gone completely haywire. I'm very ready with my available cash to deploy if something strange happens.
Stocktrader
Hi Stocktrader,
Dollar sudden collapse is not good for any market.....3% jump by Yen is unheard of in minutes......
I am not sure that its safe to be fully expose to this crazy TAPE today.
Saleem
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