US politicians are @ it again & Monday may be tough for US market.
All indication so far is heading for a "shutdown" of US government.
TAPE has been weak in the last seven trading days due to confusion about many things as listed :
-Most important is US shutdown
-Earnings in two weeks
-Budget impasse in three weeks
-Who can forget "many version of Fed taper"
Market hates uncertainty & we got plenty going .....
Monday may be bad but Tuesday could be worse IF we do not have agreement by Monday midnight deadline.
Wednesday we may stabilize a bit.....
Thursday depends on IF there is a an agreement on hand or not......
IF no agreement on Thursday Friday could be bad again......
Earnings may be on target but guidance could be better for techs as Q4 is strong seasonally.
Budget talk can get ugly also & market may react to it......
AH..lastly Fed taper......which may not come until December...i hope......
Money managers are under exposed to in terms of less allocation...they know the drill in Washington better than retail....are staying defensive.
S&P 500 is down 2.47% from its high to Friday's low in last seven trading days.......where it may find support depends on last second of deliberation......
50 DMA @ 1680.18.....it may be taken out easily IF there is no agreement.......after that we have to monitor closely if there is buying below 50 DMA......
Any weakness must be bought as we are entering strong Q4 on Tuesday.....
Buy any strong stock which has pulled back slightly from its highs......RSI 50 area is a very good entry point...many strong stocks are already in that buying zone namely NTES SINA YY QIHU AAPL LNKD TRIP GOOG CSOD RALY.....to name a few......
Good luck with political drama..same old same old ????
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Saleem
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