Tuesday, June 25, 2013

Indices closed UP .69% to .95%....NICE !!!!

Indices closed UP on US & Chinese Central bank assurances.

S&P 500 @ 1588.03, high 1593.79, low 1577.09

RSI @ 41.55

CMF @ -0.070

Internals were :

UP volume led by 6.89 to 1 in NYSE & 2.91 to 1 in Nasdaq

Advancing stocks led by 4.15 to 1 in NYSE & 2.55 to 1 in Nasdaq

Net new 52 wk lows were leading by 96 in NYSE & highs were leading by 33 in Nasdaq

VIX Down 8.16% @ 18.47

Oil @ $95.32

Gold @ $1275.10......Goldman Sachs predicting Gold @ $1050 by end of 2014......

Stocks which were UP 1% or more included EBAY KOG BBRY
YHOO JCP KORS LULU TIF LNKD RDN TCK FCX 
PANW MOS FB BAC MS C HMC CLF X STLD 
DNKN SBUX LVS WYNN BIDU V GRPN
WPRT CRUS ZNGA LRCX MU BRCM
CIEN SNDK QCOM CSIQ FSLR
SPWR SINA MGA MLNX Z
GS AGU IBN.....

AH Futures Down

AH Asian Markets Mixed

AH Oil & Gold Down

About market, market bounce was not convincing in terms of % move. US & Chinese Central Banks went out of the way to assure that they are willing to meet traders concern & it may have overdone their strategy. This should have sparked a minimum 3% move. The message of the market is, that indices could be under pressure again.

BLOG does NOT give buy or sell.

Saleem

13 comments:

stocktrader_1996 said...

Hey Saleem,

I almost sold my INVN a couple times yesterday on my fears of a smartphone replacement cycle lengthening and market saturation. Then SYNA comes out after the bell last night and preannounces higher based on strong mobile sales. I know that is somewhat due to their market presence and superior product, but it makes me wonder if INVN can have a similar story. I know INVN doesn't quite have the wins yet it needs to drive revenue, but that is an upcoming catalyst. I guess I'm back on watch mode instead of sell-trigger mode, although any large gain will still make me anxious to sell.

On a separate note, I've been looking at housing plays more. I may sell my TOL as valuation tells me the best of scenarios might be priced in already (PE 38.5 this year, 21 next year). I think there might be more value in the interior housing plays like a BBBY or something.

Finally, BAC is a sell candidate due to potential higher capital requirements that could limit their ability to grow. The lack of mortgage refinancing could hurt also. RDN seems to be a better play when I look at the whole picture--the good loans on their books can keep giving and the phase out of government loans provides a tailwind.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Good analysis of relative strength of each position.

Being overweight in housing is like my being overweight in Gold stock..not a smart idea based on TAPE action......

Yes BAC is stuck in a narrow trading range.......

It is good to book profit & prune weaker bets.

INVN may be a nice hold.

Saleem

Stocks100 said...

Hi Stocktrader,

One more thing on INVN....50 DMA crossed over 200 DMA...a bullish crossover.....

Saleem

stocktrader_1996 said...

Hey Saleem,

Yes, I have been watching that crossover, but often I find it a bit lagging as an indicator short-term (it represents past strength).

Funnily enough about the housing discussion, I know you don't watch CNBC, but Cramer just had almost the exact same discussion with similar points as I just laid out. He talks about RH, but that's way too expensive for me. I think the bulk of the acceleration will come from middle-class improvements which speaks to BBBY. I may have convinced myself enough to buy it ahead of the earnings report after the bell.

Stocktrader

stocktrader_1996 said...
This comment has been removed by the author.
stocktrader_1996 said...

Hey Saleem,

Did sell BAC @ 12.76--looking to enter BBBY I think.

Stocktrader

stocktrader_1996 said...

Hey Saleem,

Did enter BBBY @ 69.62. Hopefully I've made an informed choice here.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Yes..i do not have CNBC in my TV or any other business channel like Bloomberg / Fox/ or even Canadian business channel like BNN......

I find all of them extremely disruptive to my thought process...but that just me..i like Peace & Quiet..even in my personal life...not a crowd person @ all.

Good luck with new ideas.

Saleem

stocktrader_1996 said...

Hey Saleem,

Sold TOL @ 32.522. I'll probably keep WLH for now since it's very undervalued compared to its peers.

I'm very interested in getting one commodity stock--might do STLD or WLT...not sure...

Stocktrader

Stocks100 said...

Hi Stocktrader,

TCK announced a buyback today.....maybe worth a look...

Saleem

stocktrader_1996 said...

Hey Saleem,

Ugh, should have gone with my gut feeling yesterday on INVN and sold on today's pop.

TCK looks very interesting here--I haven't followed it for a while, but I should do some catchup research.

Stocktrader

stocktrader_1996 said...

Hey Saleem,

The market looks good for more rise here. I'm not sure if this is just window dressing? or a sign of a more constructive market going forward...quiet and climbing...

Stocktrader

Stocks100 said...

Hi Stocktrader,

Stable & uptrending market is good.

Back to back gain is technically important......

Negative news & market going UP is very good......

Saleem