Indices are staging a mild oversold bounce after relentless selling for 3 days.
Nasdaq lost 233.95 points or 5.46% in 72 hours of selling.
S&P 500 @ 1853.21, high 1854.95, low 1837.49
Internals are positive by 2 to 1
Oil UP $1.81
Gold UP $10.60
Canadian $ UP 50 tick @ 90.79..a 3 month high on stunning defeat of separatist party in Quebec where the leader lost her seat......
VIX Down 4.30% @ 14.90
Portfolio WUBA LULU MU OWW RAD
Most stocks are UP
@ 1.56 following are red :
AAPL ONVO GRPN RVBD ARUN LRCX
GMCR SPWR CSOD MS GS....
BLOG does NOT give buy or sell.
Saleem
10 comments:
Hey Saleem,
Sold:
FDX @ 133.14
AXLL @ 48.19
JKS @ 28.643
I'm trying to reduce some exposure to cyclicals. I'm not sure the economy is recovering like we think it should have after the weather effects. The 10-yr decline is very interesting.
Stocktrader
Hi Stocktrader,
Good idea to have "high comfort level"....
YES..10 yr @ 2.68 may reflect focus in bonds vs equities.....
Saleem
Hey Saleem,
Sold WLH @ 27.193 and SINA @ 55.318.
These are less familiar names for me and I didn't need the extra exposure. SINA in particular has acted very poorly despite what should have been some positive catalysts.
Stocktrader
Hi Stocktrader,
Regrouping is a good idea to come up with new strategy.
Saleem
Hey Saleem,
Here's the CSOD note finally:
Shares of Cornerstone OnDemand (NASDAQ: CSOD) are down 7.1 percent to $41.03 after JMP Securities lowered the price target from $70 to $63 Tuesday morning.
The stock was down as much as 13 percent early in Tuesday's trading.
Analyst Patrick Walravens maintained a Market Outperform rating, but is concerned about negative data points from checks.
Cornerstone “may have seen softness in the enterprise business in Americas in Q1…probably specific to the seasonally weak first quarter.”
The softness caused Walravens to reduce the first quarter billings growth estimate from 45 percent to 30 percent and non-GAAP loss per share from $0.23 to $0.25 for full year 2014.
Stocktrader
Hi Stocktrader,
Your guess pretty much matches analysts concern.
Saleem
Hey Saleem,
Sold CSOD @ 40.39 (having chased it down some).
With this skittish market, and a potential warning coming, I can't justify the upside right now. In fact, if there is "softness in the enterprise business in Americas", *many* cloud companies are in trouble. I don't know what to make of this yet, but I may sell SPLK tomorrow.
Stocktrader
Hi Stocktrader,
I saw analyst upgrade on YELP today & it expect "modest improvement" from new sales.....
I think Cloud stocks may be facing "limited growth potential" for now.
Saleem
Hi Stocktrader,
I really enjoy your daily post. I want to know if the head and shoulder are forming for the Dow, S&P, and Nasdaq. It looks like the market wants to head down. What do you think?
Thanks
cong
Hi Cong,
Thanks for your kind words! :)
I can definitely see a H&S pattern in the $COMPX with something like early March being the head and mid-Jan and early April being the shoulders, although it is possible the early April "peak" was just part of the head formation still, and that there's another shoulder to form. Either way, the neckline/support is at ~4000 even and should also correspond to the 200 DMA at nearly the same time the formation reaches there if the pattern completes.
The Dow and S&P patterns are less-well defined with more like a false breakout being the pattern I see. The S&P in particular formed a nice double-bottom in March right at the breakout level of ~1840-1850 from the prior pattern. Unfortunately, the attempted followthrough rally above 1880 from that double bottom pattern was rejected last Friday on high volume and we sit at the support level again of 1840-1850.
I feel like something is wrong with the market right now, and may have to do with a world economy that is not as strong as we think, but feeling something is wrong sometimes tricks your mind into doing exactly the wrong thing as the damage is already complete.
My best advice now is to see how companies react after each earnings report. That will tell us how much money is left to buy up stocks since all is revealed on those days.
Good luck!
Stocktrader
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