Indices closed down closing near low of the day.
S&P 500 @ 1802.62, low 1801.75
RSI @ 59.25
CMF @ 0.104
Internals were :
Down volume led by 1.68 to 1 in NYSE & 1.07 to 1 in Nasdaq
Declining stocks led by 1.50 to 1 in NYSE & 1.84 to 1 in Nasdaq
Net new 52 wk highs were leading by 26 in NYSE & 55 in Nasdaq
VIX UP 3.11% @ 13.91
Oil @ $98.51
Gold @ $1261.10
AH Futures UP
AH Asian Markets Down
AH Oil & Gold Down
About market, TAPE was weak & internals were weaker. The only positive was that Social Media, Internet, Gold & commodities stocks were strong. Looks like rotation is very much in play. Budget deal removes one major negative from traders mind. It is important to play what is working. Market verdict is more important than ones opinion.
BLOG does NOT give buy or sell.
Saleem
12 comments:
Hey Saleem,
Rebought TXTR @ 37.62 given its strength today when it could easily have sold off on either rejection of the 50 DMA and/or market weakness. There just seems to be no sellers.
Stocktrader
Hi Stocktrader,
TXTR is seeing positive money flow....which shows interest in this stock.
Saleem
Hi Stocktrader,
Added 15% JKS @ $25.66.
Saleem
Hey Saleem,
That is a brave play on a technical basis. The false breakout of the 50 DMA troubles me. However, you have been so right on these stocks buying originally on that secondary in the $16-17 range. Good luck with your entry! :)
Stocktrader
Hi Stocktrader,
Solar stocks are extremely volatile....but adding near lows has paid off each time.....
Saleem
Hey Saleem,
Bought some CLDX @ 22.36. This is going against the grain in many ways, but they've had such good trial results recently and I think the sentiment has washed out very far.
Stocktrader
Hi Stocktrader,
I think price is much better this time with CLDX....
Saleem
Hey Saleem,
A couple other observations:
1. GMCR is a possible super short squeeze into year end based on high profile shorts (Einhorn) and others they may have gotten into that short and also optimism about their new products for 2014.
2. The Baltic Dry Index ($BDI) reached another 3+ year high @ 2299 (+62). Given their huge debt loads, the bulkers are highly leveraged to the up cycle. SB DRYS BALT NM PRGN are the ones I'm following, but there are others too.
3. We may see a similar effect to the jobs report where we are sluggish/down in trading until the Fed announcement, and then rally no matter what.
4. Based on today's action, the index charts ($SPX/SPY and $RUT/IWM) are getting ugly with the small cap index testing support as we speak. I'm not sure it can hold, but I think the weakness could potentially be short-lived based on #3.
Stocktrader
Hey Saleem,
Oh, I forgot one more (which I'd been thinking about longer, just not this second):
5. I think WUBA has a great business model for the Chinese market but the first quarterly report disappointed many. It's the Chinese internet I'm watching most closely.
Stocktrader
Hi Stocktrader,
Thanks for your detailed analysis of many issues facing TAPE....
I agree about GMCR..it is looking better for year end play ....they warned for this Q..but TAPE action is more than OK.....
WUBA is on my watch list.....
Saleem
Hey Saleem,
Haha, my own list convinced me to buy WUBA. Got @ 30.34.
Stocktrader
Hi Stocktrader,
Good luck with WUBA,CLDX,TXTR..
Saleem
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