Sunday, March 2, 2014

Where to now in markets ?


March is starting with history favoring stocks......With S&P 500 reaching 1867.92 & closing @ 1859.45

Based on history March is not good for gold......which closed @ $1321.60

But these are historical averages.......

These days averages may not hold......

WHY ?

Because stocks are in record high territory going into March...

Gold is down 16.73% on a 12 month basis going into march....

Gold 12 month high is $1623.20

Stocks may rest or trade in a narrow range..

VIX which closed @ 14.00 may jump towards 18 area...

Why this contrary picture ?

Because RSI @ 64.09 has little room on the upside thus overbought conditions prevails....

We must not fight for next 2% but worry about losing 6%...

Retail traders are generally more bullish near Top but extremely bearish near bottom.....we are certainly near top end of trading range.....

There are many stocks which are lagging this market & there lies opportunity to make money.

Leading stocks are extremely vulnerable for downward move.......

Silver stocks are behaving better than Silver especially SLW SSRI.....

Gold stocks have pulled back & may be setting up for a major upward move...GG is looking the best.

International tension is a regional issue & i do not believe they will escalate......

SO..keep an eye on TAPE & adjust quickly to where profits can be made.

BLOG does NOT give buy or sell.

Saleem


11 comments:

Djovanny said...

agree on gold stocks: Thursday-Friday will be good days to buy . gold will move to 14xx by April, then small correction ans final move to 15xx in to middle of the may big correction will follow june -july (at this point i think it will fall as low as to 950 $ per oz ) but at least to 1350 $ what is your opinion Saleem

Djovanny said...

P.S summer will be ultimate buy and hold gold and gold stocks

Stocks100 said...

Hi Djovanny,

Gold is & will surprise on the upside...March will set the trend for UP move..once weak month of March becomes strong panic buying may set in.....

India is reversing its policy on Gold import which will be a huge factor in UP move....they already have gone UP in imports about 6 times from its low import set in August/September.....

Pullbacks is healthy in any bull run and gold is no exception....but not to the tune of what you are saying...technician will tell you that old resistance becomes support in any bull run......Gold @ around $1200 is a good support....

Saleem

stocktrader_1996 said...

Hey Saleem,

Besides the great earnings this morning from JKS, the NPC starts in China this week and pollution is said to be a top agenda item, which could also provide a positive sentiment backdrop.

Stocktrader

stocktrader_1996 said...

Hey Saleem,

The value of having some cash: I wanted to buy some WUBA this morning, but just couldn't figure out what to sell. If i'd just had cash already, I would have gotten the sub-47 at open. Now I have to figure out what to do--it's still probably a good idea to raise at least one small position worth of cash for opportunities.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Sell half of anything which you have profit in......

US data is very impressive this AM...

Buying on weakness is a good idea.

Saleem

stocktrader_1996 said...

Hey Saleem,

I decided to sell CNX @ 39.79. The trade I was looking for didn't play out, and I really don't have insight on the company going forward--I'm trying not to turn this trade into an investment (one of the big rules, right!).

Bought WUBA @ 48.271. I really like what these guys are doing and I was worried about valuation and the fact they missed in their first reporting quarter. Now that they've gained the traction, I'm more comfortable entering into a longer term position.

Stocktrader

Stocks100 said...

Hi Stocktrader,

WUBA looking good.UP on a down day..

Good luck $$$$

Saleem

stocktrader_1996 said...

Hey Saleem,

Wow...perfectly bad timing on selling CNX, although I still am ok with the sell based on my reasoning.

Stocktrader

stocktrader_1996 said...

Hey Saleem,

Swapped CLDX @ 26.12 for SPLK @ 88.481.

CLDX is out of catalysts for a while so will probably trade in a range for a while.

SPLK has such a magnificent future that I couldn't pass up this chance to buy on a dip.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Smart move in getting back with SPLK story.

Saleem