Fed statement about slowing housing / economy spooked the market.
S&P 500 @ 1763.31, high 1775.22, low 1757.24
RSI @ 65.97
CMF @ 0.343
Internals were :
Down volume led by 1.93 to 1 in NYSE & 2.87 to 1 in Nasdaq
Declining stocks led by 2.44 to 1 in NYSE & 2.88 to 1 in Nasdaq
Net new 52 wk highs were leading by 186 in NYSE & 125 in Nasdaq
VIX UP 1.79% @ 13.65
Oil @ $96.77
Gold @ $1349.30
AH ER :
FB Down 0.04%, SPWR Down 4.96%, JDSU Down 7.93%
EXPE UP 18.82%
AH Futures Down
AH Asian Markets Mixed
AH Oil & Gold Down
About market, TAPE was weak from 11 AM onwards, made attempt to rally after Fed announcement but failed gain to close lower in all indices. S&P 500 made a new all time high then turned lower. Internals were weak @ close. TAPE strength will be put to test after open & we have to see how we close. I am hoping that close will be half decent.
BLOG does NOT give buy or sell.
Saleem
14 comments:
Hey Saleem,
I really don't see a huge catalyst for FB in the coming months other than an S&P addition. I'm going to try and be a smart seller today.
Stocktrader
Hey Saleem,
Well...so much for that plan. It's down ~$2 from the pre-market highs--that makes this a tougher decision.
You'll likely have a lot of push and pull based on a higher base rate of earnings but slower expected growth ahead. Where that fair value lies, I'm not sure, but at the very least, I expect a test of that 50 DMA around $47 (hit $47.25 in AH last night).
It is interesting from a broader perspective to see how the advertising model has a certain cap in revenue potential. You have to carefully balance user experience with profit and that limits the amount you can do unless your user base or engagement grows steadily. I'm not sure in FB's case we can assume either of those things despite last quarter being good in both.
Stocktrader
Hey Saleem,
...and now -$3 from those highs!
I think YELP and BIDU have bigger ramps ahead and investors will likely focus on names like those. YY reports next week and that should be interesting.
Also interesting, maybe AAPL regains that "must have" status into year end anticipating a great Q4.
Stocktrader
Hey Saleem,
Sold FB @ 48.38.
Stocktrader
Hey Saleem,
Bought WUBA at 24.14. I had intended to buy earlier, but got caught up in other things this morning.
It is very closely held, so I expect the low amount of available shares to drive the stock higher (besides the good business part).
Stocktrader
Hey Saleem,
Sold the rest of my FCX @ 37.094. It seems the tide is turning against commodities.
Stocktrader
Hi Stocktrader,
Got up late......
Good move in selling FB & FCX....
YES I agree BIDU has better potential on their dominance & future mobile growth....
Good luck with WUBA?...dont know that one
Saleem
Hey Saleem,
I'm not sure FB actually has much downside, but the upside is gone for now I think, which will likely make it drift lower.
WUBA is an IPO today.
Stocktrader
Hi Stocktrader,
FB will trade on fundamentals NOT emotion......they may be playing UPOD like many companies.....
Saleem
Hey Saleem,
Added to YELP @ 66.797. The chart looks set up for a move higher and the fundamentals remain strong. I also see this as a way to play the FB reversal higher without actually buying that back, but was considering it anyways earlier when FB was still down.
Stocktrader
Hey Saleem,
Added to BIDU @ 161.98.
Stocktrader
Hi Stocktrader,
Nice add-on in BIDU & YELP.....
FB looks like ready to move "further UP"
Saleem
Hey Saleem,
I don't have enough cash available right now, but wow, TRLA is much cheaper than yesterday morning. The analysts love this stock and the monetization actually looks ahead of schedule. I might try to do something here.
Stocktrader
Hi Stocktrader,
This is a market which will reward if "patience is exercised"
Averaging down may not be the best strategy.....sticking with good ideas to play it out should do well.
Saleem
Post a Comment