TAPE is weak & struggling with Fed upcoming decision on taper....
IF Fed decides to cutback by $10 Billion we may see a relief rally.....
IF Fed decides to cutback by $25 billion we may go well below 50 DMA in indices.....
Whole world markets have their eyes on Fed decision......
TAPE has been weak & making lower lows which is not healthy....
By 2 PM on Wednesday markets may have made lows for this pullback.
It is OK to buy on weakness which has been ongoing since last week of October 2013...we are exactly where we were last week of October.
This Friday is also option expiry which may bring more volatility...
Doing nothing ahead of Fed or Option Expiry is an OK strategy also......let the uncertainty be out of the way.
Many stocks have hit recent lows & may be ripe for a trade.
TWTR has proven once again that so called pundits have no clue when they "bad mouth" certain stock or IPO.
Solar stocks have pulled back substantially & may be ready to move again.
Chinese Internet stocks are stable & may be getting ready for a move UP.
Gold & Gold stocks are looking washed out & may outperform in 2014.....
SO...it is a week to rethink & reposition for 2014......
Making money is a combination of Science ( technical), Art ( fundamental) & luck ( timing)...sometimes luck plays a significant role .......
Good luck with your strategy which may or may not include above mentioned approach, some of you just do $ cost averaging which beats all strategy.
BLOG does NOT give buy or sell.
Saleem
9 comments:
Hey Saleem,
Did you change your stance on a January taper start? I thought we were debating between 0-10M.
Stocktrader
Hi Stocktrader,
NO..i am still with January taper....but the amount of taper may be as high as $25 billion in January...
Saleem
Hi Stocktrader,
Once taper starts it will be over in 6 to 8 months.....so $85 billion divided by 6 or 8 months =$14.17 Billion per month in 6 months or in 8 months=$10.625 Billion per month
We may get this type of detail on Wednesday......
Saleem
Hi Stocktrader,
Sold QIHU $79.31...
Saleem
Hey Saleem,
Ah ok. I didn't realize you were expecting January guidance from the December meeting--it makes sense now.
I'm interested to see your next move with the QIHU funds! :)
Stocktrader
Hey Saleem,
Bought FB @ ~54.22 avg. This appears to be an anointed stock into year's end as it is shrugging off even the TWTR double-downgrades. I may be a little late to the game in recognizing the rise, but it still has great growth ahead and I don't think there'll be much sell pressure in the next two weeks.
Stocktrader
Hi Stocktrader,
I had the same idea but went different route....
Bought FB calls exp Friday strike price $56...cost 42 cents...had to wait a long time for this...10 contract...
Saleem
Hey Saleem,
I've been watching for an opportunity in options in my trading account. Just bought 100 Dec 57 calls @ 0.20. Besides the general relative strength, I'm hoping for a Friday boost based on the S&P addition that day at close.
Stocktrader
Hi Stocktrader,
My reason for buying option in FB was for "technical breakout" to many new all time highs..it came within 33 cents to "breakout"
Good luck in your December strategy$$$$
Saleem
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