In last 8 trading days...we have gone from 1560.33 to 1631.89...a gain of 71.56 points or a jump of 4.59%.....
Technicians are split as to where we go next.......
One famous website is predicting a drop to 1530 first then another drop to 1465 area...that will be a sharp drop of 166 points or 10.17%.....
Another famous chart reader is predicting a "breakout" in S&P 500.......
That IS the world of "technicians"......coming to exactly different conclusion...while looking @ exactly the same chart......
SO...where do we go from here ?
Based on current worldwide strength & earning seasonality.....we are headed higher.......
First target is 1654.19 or a move UP of 22.30 points or 1.3% higher.....
Second target is 1687.18 or a move UP or 55.29 points or 3.39% higher....
I believe that we should make a run towards 1700 area before this run is over.....
Why am i OPTIMISTIC again ?
Worldwide indices had major correction, some to the tune of 20% +++ Tokyo & Shanghai to be specific......
Most exchanges are in strong rebound based on support from their Central Bank.......
US is ahead in terms of economic growth & held the correction to 126.85 points or 7.52%......this happened on a major policy shift to potential removal of QE 111.......this correction lasted from May 22nd to June 24th....a fast five weeks of pullback......
US job growth is trending @ healthy clip of above consensus.......
Most traders & economists are hoping for removal of QE 111...so economy can grow on its own.......
Strength of US$ has crashed Gold, currencies & commodities ....they are all trading @ multi year lows......
Australian & Canadian $ are the latest to plunge.......
Commodities may be near its turning point....as Oil has defied US$ strength & its @ new trading high...this divergence may be giving hope of other turnaround in Base metals & Precious metals.......
All in all, we could be on the verge of " all boats being lifted"
BLOG does NOT give buy or sell.
Saleem
8 comments:
Hey Saleem,
I'm back in town and loving the market action, even though it seems I miss so much when I'm gone for even a day!
Earnings season is here again--time to get those ears ready to hear again! :)
Stocktrader
Hi Stocktrader,
I am sure your internet read of market on Friday was telling you "enjoy more with family"
Earnings will be selectively better where CEO knows what they are doing.
Saleem
Hey Saleem,
Sold TEAR @ 11.113. I think the stock needs a resting/pullback period after the great run this year. The stock is pricing in much of the good news at this point.
Stocktrader
Hi Stocktrader,
I am glad that you are booking profit while keeping an eye on fundamental technical.
Saleem
Hey Saleem,
I was going to trim back the CLDX after a 50% run in the short time I've owned it but the stock dropped too fast this morning. If we approach $21 again, I'll take some off.
Commodities performing well today and many software/tech stocks are down--finally seeing some positive divergence from my big shift.
Stocktrader
Hi Stocktrader,
RSI on CLDX was in mid 80's before small 70 cent pullback.....it is in a major uptrend.CLDX has a pattern of consolidating ...then moving higher.
Strange action in Gold stock...Gold UP $20..but AUY is down....hard enough to get Gold direction right but for stock to go down?????
Saleem
Hey Saleem,
Bought X @ 18.77. Steel prices continue to move higher due to both supply shortages and increased demand, and the short interest is massive here. An article over the weekend highlights the steel moves:
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July 6, 2013 14:57 EDT X theflyonthewall.com:
Sudden acceleration of steel prices concerns buyers, WSJ says
Due to a few unforeseen events, steel prices have ticked up in recent weeks leaving buyers of the metal concerned on pricing and inventory, says the Wall Street Journal. Mechanical issues in Ohio and Brazil, along with a worker lockout in Ontario, have taken 4% of the U.S steel supply off the market in the last few months, added the WSJ.
Reference Link :theflyonthewall.com
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Stocktrader
Hi Stocktrader,
You have been on top of this "change in outlook" for Iron Ore & Steel prices.
Very good strategy.
Saleem
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