Indices continues to show strength & closed green.
S&P 500 @ 1682.50, high 1684.51
RSI @ 67.13
CMF @ 0.135
Internals were :
UP volume led by 1.78 to 1 in NYSE & 1.74 to 1 in Nasdaq
Advancing stocks led by 1.66 to 1 in NYSE & 1.92 to 1 in Nasdaq
Net new 52 wk highs were leading by 279 in NYSE & 324 in Nasdaq
VIX Down .36% @ 13.79
Oil @ $106.32
Gold @ $1283.50
Stocks which were UP 1% or more included BBRY
WPRT CSIQ FSLR SPWR MU TCK CLF
GMCR TIF FB ZNGA AMCC CIEN
C YUM M LVS BIDU FFIV Z
SINA MS.....
AH Futures Down
AH Asian Markets Mixed
AH Oil & Gold Down
About market, TAPE may pause for Ben Bernanke testimony in front of politicians. Sector rotation is slowly making its move. As TAPE is near high point in RSI, it is important to focus on booking some gains.
BLOG does NOT give buy or sell.
Saleem
14 comments:
Hey Saleem,
It is very hard to be contrarian. Every morning it seems like the old weak stocks sell off and the old strong stocks move higher. Then you wonder if you really have a good thesis or just chasing the wind.
RIO is up nicely after earnings along the lines of post-earnings reactions I expect from these guys. Unfortunately, we aren't seeing much spillover into names like CLF yet today.
Stocktrader
Hi Stocktrader,
YES..it is extremely tough to be contrarian...i know with my BBRY position......i am selling BBRY now....got partial fill waiting for rest.....
Good luck with CLF...
Saleem
Hi Stocktrader,
Sold BBRY @ $9.25
Bought MU @ $13.27
Bought KORS @ $61.85
Saleem
Hey Saleem,
I read some pretty positive notes on MU over the weekend in my tech catchup (was too focused on commodities last week and missed some things). Based on the weakening of the yen, their Elpida purchase looks even cheaper, which is a great thing. All of the synergies are ahead, so that will provide a nice tailwind for what is always a challenging industry.
In similiar veins, I looked at some research on WDC/STX which kind of slapped me in the face. What a rally I missed in those! The premise for their gains is really driven by the massive build of server farms which I didn't even think about. With a massively consolidated industry and that recent growth driver, no wonder they have confounded the shorts this year.
Good luck with the picks! :)
Stocktrader
Hey Saleem,
FYI, the Barron's Tech Trader Daily is a fantastic resource for tech stories and analyst actions:
http://blogs.barrons.com/techtraderdaily/
Stocktrader
Hi Stocktrader,
As you must have observed by now..i make my buying decision on current TAPE or future potential.
I have a summarized knowledge of what they do but do not spend too much time on FA.....more of a chart reader.
After saying all that, i do read with great interest what you post about many stocks.
Thanks for update on MU & STX/WDC...yes that combo was a major surprise to me also.
Saleem
Hi Stocktrader,
I used to read that daily in Barrons newsletter every close..but their format is really bad now ..more like high school point form summarized headings......
Saleem
Hi Stocktrader,
I have bookmarked tech blog of Barron...thanks for this focus.
Saleem
Hey Saleem,
My take on SODA: I see this GMCR news about a patent application for a soda machine as a positive from these levels. Suddenly this validates the space that KO and PEP were reluctant to enter/acknowledge, and now market penetration can inflect to the upside.
Usually when this happens, the competitive concerns don't materialize for a year+ as market gobbling by both companies happens first. Add this to the fact that many people sell/short on this news makes the stock poised to move significantly higher.
I've seen this many times before, and although I'm not saying it will happen again, I think the risk/reward here is fantastic given the business momentum was already strong.
Stocktrader
Hi Stocktrader,
Thanks for your detailed take on "competitive landscape" for SODA....
I was wondering why GMCR went UP yesterday.....it was interesting that SODA was also UP yesterday?
Why the drop in SODA today?
Saleem
Hey Saleem,
I think SODA caught a little bit of an oversold bounce yesterday, and then today just got caught in the downdraft of the whole market as well as retail traders catching up on the patent news overnight and deciding to sell today.
Again, my call to buy is against the grain of the recent price action, so it is sure to be choppy.
Stocktrader
Hey Saleem,
I probably would have added to SODA here with my half position cash but I'm saving it for the OMED IPO later this week.
Stocktrader
Hey Saleem,
One more thing interesting too: for the first time this year, yesterday before close I shifted my wife's 401(k) out of the 100% small cap growth and into a 30/70% split of a natural resource fund and two different emerging markets funds.
Another against the grain...
Stocktrader
Hi Stocktrader,
I think it is a smart move to move into mutual funds in resource & emerging market sector.
Saleem
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