Indices reacted to "blame game" by politicians. Dow & S&P 500 closed below 50 DMA.
S&P 500 @ 1678.66, low 1670.36...50 DMA @ 1679.84
RSI @ 46.74
CMF @ 0.124
Internals were :
Down volume led by 4.55 to 1 in NYSE & 4.08 to 1 in Nasdaq
Declining stocks led by 3.71 to 1 in NYSE & 2.88 to 1 in Nasdaq
Net new 52 wk highs were leading by 54 in NYSE & 88 in Nasdaq
VIX UP 6.45% @ 17.67
Oil @ $103.31
Gold @ $1317.60
AH Futures UP
AH Asian Markets Mixed
AH Oil & Gold Down
About market, IBD is changing its market outlook tonight to "market under pressure". There is more than 50% chance that a deal can be worked out over the weekend. Politicians do worry about "backlash" which is quite intense for both parties. It is a great idea to buy any strong stocks which has been beaten down. Q4 is a great time to be bullish & exposure should be @ max.
BLOG does NOT give buy or sell.
Saleem
10 comments:
Hey Saleem,
I think it's more like a 5% chance a deal can be worked out over the weekend. This fight looks increasingly like the government shutdown will merge with the debt ceiling debate meaning no agreement for ~two weeks, but then some kind of "grand bargain".
How the market handles that scenario, I'm not sure, but I tentatively think the market will not crash, but certainly could continue to drift lower with only a few key stocks getting bids.
I may have re-entered too early today, but I always get the sell/buyback wrong in situations like this, so I'll be sticking with my stocks. I'm considering selling one of my lower betas and getting back my CLDX on this pullback. KOG doesn't seem like it wants to come back at all, but I'd consider that also if it did.
Stocktrader
Hi Stocktrader,
I am much more optimistic about a deal for Monday rally....
You will be smiling by Monday close.
About switching, it is always a good idea to go with your conviction.
CLDX looks very yummy after pullback....
Good luck with your portfolio.
Saleem
Hi Stocktrader,
Bought TRLA @ $47.57......joined you in this good idea.
Saleem
Hey Saleem,
Sold MS @ 26.874 to raise cash for opportunity and realizing that financials might be particularly negatively exposed to debt ceiling fears. Also, they are expected to report sluggish earnings. Finally, MS seems vulnerable after failing at its 50 DMA for a week+.
Stocktrader
Hi Stocktrader,
That was the-reason i sold BAC last week......
Good luck with new pick.
Saleem
Hey Saleem,
Nice on TRLA. I think potentially they could be a takeover candidate as part of a tax-free distribution of Alibaba proceeds to YHOO (I think this is how it works--Alibaba buys a company and then they swap to YHOO for Alibaba stock, making it tax free--I'll have to do more research to be sure).
Stocktrader
Hey Saleem,
Bought CLDX @ 33.02. It may have more downside still, but if I don't buy now, I probably will miss it.
RSI near 60 for the first time in a while makes me think it isn't a horrible idea.
Stocktrader
Hi Stocktrader,
CLDX made a higher low so far...which may be a signal to moving UP....
Good luck with your fav CLDX....
Saleem
Hey Saleem,
Sold X @ 21.485 to raise some cash. Some technical factors are pointing to struggles at this level and it may test lower before moving higher again.
Stocktrader
Hi Stocktrader,
Good to move on when resistance @ hand.
Saleem
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