Thursday, March 13, 2014

Indices closed down 1.17% to 1.46%.....

TAPE was under selling pressure & indices closed near low of the day.

S&P 500 @ 1846.34, low 1841.86, high 1874.40

RSI @ 50.32

CMF @ 0.124

Internals were :

Down volume led by 5.28 to 1 in NYSE & 3.98 to 1 in Nasdaq

Declining stocks led by 2.15 to 1 in NYSE & 3.29 to 1 in Nasdaq

Net new 52 wk highs were leading by 27 in NYSE & 51 in Nasdaq

VIX UP 12.09% @ 16.22

Oil @ $98.20

Gold @ $1372.40

AH ER : ULTA UP 7.59%

AH Futures UP

AH Asian Markets Down

AH Oil Down

AH Gold UP

About market, TAPE went down on China slowdown & Ukraine voting on high volume. Dow Jones closed below 50 DMA. IBD tonight is changing its market outlook to "uptrend under pressure". Jimmy the Cramer is panicking & saying dont buy dont buy. I am of the opposite view that this selling is overdone & excellent buying opportunity has emerged. Buying on Friday will be a "good thing". Many sectors held up well in this carnage, Gold & Gold stocks made new YTD highs. Airlines & Financials held up well & are above 50 DMA.

Here are some stocks which are below 50 DMA AAPL AMZN BIDU YHOO CRM MA V BBRY FSLR TSL JKS CSIQ SPWR.

Here are few stocks below 200 DMA CSCO YNDX SINA NTES.

BLOG does NOT give buy or sell.

Saleem

13 comments:

stocktrader_1996 said...

Hey Saleem,

Yesterday's selloff was really troubling to me because it came on seemingly no new news (we already knew about Ukraine and China problems) and we never really caught a bid despite opening nicely higher.

The currency market was really hit hard (USD/JPY might have actually led the charge down--I'd have to look at timing again but it's always up on my charts) and continued overnight despite flattish futures.

I think this is some kind of leverage liquidation event, especially as we've recently heard reports on the record amount of margin interest. It came on a strange day, and had serious currency implications. To that end, I am very cautious today because I'm not sure how long it will need to run its course in getting rid of all the weak players.

Stocktrader

Stocks100 said...

Hi Stocktrader,

I think that selling is near the end & Friday could be the low of this range....it is all about discounting negative news.....

Saleem

stocktrader_1996 said...

Hey Saleem,

Sold JKS @ 31.001 to reduce long exposure raising cash for opportunities.

The solars have been bothering me a little since reporting and I don't think they're in the right spot of the market at this time. Without a lot of buying support, these could fade due to consistent shorting efforts by speculators.

Stocktrader

stocktrader_1996 said...

Hey Saleem,

Really I'm torn with JKS. The chart and money flow seem poor right now with the only buying being short-lived short-squeezes.

From a fundamental side, the solar industry in China is consolidating which should help pricing power, albeit with longer term headwinds from continued commoditization. Additionally, I feel like any stimulus package from China would include higher targets for installation of solar power.

I'm following the chart for now, but have my eye on it still.

Stocktrader

stocktrader_1996 said...

Hey Saleem,

I was going to sell BAC also, but by the time I looked back at it, it had fallen well below $17 and I just wasn't ready to part with a mostly domestic bank for those prices.

Stocktrader

Stocks100 said...

Hi Stocktrader,

JKS TAPE has been sloppy since ER....YES....Chinese solar TAPE leaves lot to be desired......

Good luck with your strategy...i know it is disappointing to see continued selling.....

Saleem

Stocks100 said...

Hi Stocktrader,

Sold EGO @ $7.30

Bought LULU @ $47.11

Saleem

stocktrader_1996 said...

Hey Saleem,

Hmmm...I really like that move. Those stores are still always packed. The valuation is not what I'd like, but I think the growth story is still intact. At these levels, it is possibly a takeover candidate too? I haven't done any research on the company but it seems to me that it'd be a perfect compliment for some larger clothing businesses.

Stocktrader

Stocks100 said...

Hi Stocktrader,

LULU looks good as it has been oversold ...it is @ the lowest point since initial slump on warning....

Thanks for your feedback.

Saleem

stocktrader_1996 said...

Hey Saleem,

Sold SPLK @ 84.977 to raise some more cash and a lack of catalysts for now.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Good luck with your strategy of raising cash.

Saleem

stocktrader_1996 said...

Hey Saleem,

Sold BAC @ 16.87 and FDX @ 137.31 to reduce some cyclical exposure.

I'd sell YELP and NOW today if I could but I'm on restrictions still for those. They'll be on my sell list for Monday.

Stocktrader

Stocks100 said...

Hi Stocktrader,

You are following your strategy which will prepare you for next moves.....

Saleem