Indices closed sharply lower as 10 yr yield spiked to highest level in two years. Retail earnings have been weak also.
S&P 500 @ 1661.32, low 1658.59
RSI @ 40.82
CMF @ .118
Internals were :
Down volume led by 3.17 to 1 in NYSE & 8.23 to 1 in Nasdaq
Declining stocks led by 5.78 to 1 in NYSE & 4.27 to 1 in Nasdaq
Net new 52 wk lows were leading by 375 in NYSE & 11 in Nasdaq
VIX UP 12.96% @ 14.73
Oil @ $107.33
Gold @ $1360.90
AH Futures UP
AH Asian Markets Down
AH Oil Down
AH Gold UP
About market, IBD has changed its market outlook tonight to "market in correction". My market outlook is "strong buy". There is strong support @ 50 DMA which is @ 1656.74 area, I expect this to hold by close. Materials & Precious Metals continue to "outperform in an extremely bad TAPE"...this is a "strong confirmation of bullish trend in those sectors"
BLOG does NOT give buy or sell.
Saleem
Hey Saleem,
ReplyDeleteSold YHOO @ 27.00 based on expectations the Alibaba IPO will be pushed off into next year.
Stocktrader
Hi Stocktrader,
ReplyDeleteYHOO has been lagging since ER...
Saleem
Hey Saleem,
ReplyDeleteBought SRPT @ 33.21--going to try this one again after a positive note this morning.
Stocktrader
Hi Stocktrader,
ReplyDeleteLooks like SRPT found support around $31.....
Saleem
Hey Saleem,
ReplyDeleteSold PRU @ 79.08--lack of upside.
Stocktrader
Hey Saleem,
ReplyDeleteBought some TZA @ 26.63 for protection.
Stocktrader
Hi Stocktrader,
ReplyDeleteGood luck with TZA.....
Saleem
Hey Saleem,
ReplyDeleteSold BAC @ 14.38 and bought more TZA @ 26.65. I feel like the US economy is weakening more than I expected and margin pressure from high commodities will weigh on profits.
Stocktrader
Hi Stocktrader,
ReplyDeleteYou are following your thesis with conviction.....good luck with overweight TZA...
Saleem
Hey Saleem,
ReplyDeleteSold SODA @ 63.488 based on chart problems, lack of catalysts, weakening economy?, and Israeli company risk.
I may also trim KORS--stil working on whether I want to do that.
With any cash today I'm either adding to the TZA (triple short $RUT) or some gold/gold miner exposure.
Stocktrader
Hi Stocktrader,
ReplyDeleteGood moves in getting rid of "non catalyst"......
Retail is marking time until Q4....
Saleem
Hey Saleem,
ReplyDeleteAdded more TZA @ 26.48. I was actually just testing the order and went too far into the confirmations--oops! It's ok because it was probably what I was going to do anyways, just was off in timing.
Stocktrader
Hey Saleem,
ReplyDeleteSold WLK @ 101.63 and bought more TZA @ 26.45.
Stocktrader
Hi Stocktrader,
ReplyDeleteGood luck with " high octane TZA "
Saleem
Hey Saleem,
ReplyDeleteI feel pretty foolish for not selling CLF multiple times at higher prices when I had the chance.
I'm looking to sell CLF and possibly X & AA before close.
Stocktrader
Hey Saleem,
ReplyDeleteSold TCK, CLF, X, AA, and trimmed KORS.
I think I am now comfortable with my holdings and hedging.
Stocktrader
Hi Stocktrader,
ReplyDeleteIt is always important to have high comfort level with your exposure & holding......
TZA is working out nicely.
Saleem
Hey Saleem,
ReplyDeleteAs you know, last month I shifted my wife's 401(k) from 100% US small cap (where I'd been all year) to 1/3 natural resources 2/3 emerging markets. It has been a great month, but today, I made another shift...to 100% bonds. I think we've seen the peak in yields for a while (hence why going long bonds because down yields = up bond price). The great conundrum that will confuse people for a while is why the market won't go up once yields start falling (because people see bond yields as a proxy for Fed taper chances)--it will be because the economy is weaker than it should be. This is my current call and prediction. I'll elaborate more in my weekly recap/outlook.
Have a nice weekend! :)
Stocktrader
Hi Stocktrader,
ReplyDeleteYes i remember your switch to emerging market.
I think you are on the right track with 10 yr @ 2.828 yield.....it is on the high end of expectations for current environment.....
Bond has corrected quite a bit...good move...perfect timing.
Saleem