Sunday, January 12, 2014

Indices build base for 11 trading day's.....now what ?

11 trading days ago on December 24th, 2013 S&P closed @ 1833.32, on January 10th, 2014 low was 1832.43.......

11 trading days may not seem like enough time to build a base for another run...but we are talking runaway bull market where 11 days of sideways trading may be more than enough.

S&P 500 is less than 7 points from making another all time high, this could be achieved on Monday......

Above stat is telling me that vacation & overbought conditions played a role in indices going sideways...

We had one full week of trading after holidays, where new leadership has emerged.

Many frontline stocks are faltering & breaking 10 day, 20 day & 50 day support...which should be noted for preventing further losses.

What we may think about many stocks may not matter when market does not agrees, that is why seasonality & out of favor TAPE action is very obvious.

Now that we are in 2nd full week of trading after holidays, there is plenty of money waiting to be put to work, i am hopeful that we will see a strong outlay of funds into equities.

2014 allocation may chase many stocks which needs to be monitored closely.

I think Gold has turned UP & may see quick move UP in Gold stocks.

Many sectors are behaving well including Solar, Airlines, Techs.....heavy weighting in these will keep portfolios productive.

SO..here we are @ start of third week of 2014 trading, character has changed already.

Good luck with your picks & strategy for 2014.

BLOG does NOT give buy or sell.

Saleem

8 comments:

stocktrader_1996 said...

Hey Saleem,

Bought LRCX @ 54.957.

Positive analyst commentary and a great-looking chart contributed to this buy. I'm looking for a breakout above $55.

Stocktrader

stocktrader_1996 said...

Hey Saleem,

Added to CLDX @ 24.697.

You know I like the pipeline and outlook for this company. The technical picture has turned positive now and I wanted to have more exposure, especially since it's my only biotech.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Good luck with LRCX & CLDX add on.

Saleem

stocktrader_1996 said...

Hey Saleem,

Sold SODA @ 38.976.

If they couldn't report well in their best chance to shine, they will be even more challenged as competition arrives and the market saturates. I was hoping for a bit of a short squeeze to bounce the price up this morning, but I'll have to settle for selling here.

Stocktrader

stocktrader_1996 said...

Hey Saleem,

Bought CELG @ 171.20.

Based on their conference comments, they significantly raised their 2017 estimates. The chart looks good for breakout here as analysts will need to raise PTs.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Good luck with CELG.

Saleem

stocktrader_1996 said...

Hey Saleem,

Um yeah...messed that up. Of course the company talks about how great 2017 will be and then lowers 2014 five minutes later...

Stocktrader

Stocks100 said...

Hi Stocktrader,

Stocks are becoming landmine today...LULU SODA CELG....

Saleem