Friday, May 23, 2014

Indices closed UP .38% to .76%.....NICE !!!!

Indices closed UP 3 day's in a row plus S&P 500 closed @ all time high.

S&P 500 @ 1900.53, high 1901.26, low 1893.32

RSI @ 59.06

CMF @ 0.277

Internals were :

UP volume led by 2.34 to 1 in NYSE & 2.92 to 1 in Nasdaq

Advancing stocks led by 2.22 to 1 in NYSE & 2.74 to 1 in Nasdaq

Net new 52 wk highs were leading by 104 in NYSE & by 19 in Nasdaq

VIX Down 5.57% @ 11.36, closed @ low of the day & @ new 52 wk low....

Oil @ $104.35

Gold @ $1291.70

Canadian $ @ 91.30

Stocks which closed UP 2% or more included GRPN OWW
RAD LEN AMZN BIDU KORS JKS SINA INVN 
GTAT LRCX CRUS NFLX DATA TRLA 
TRIP.....

Here is my weighting @ close :

LULU 33.29%

WUBA 21.51%

SWIR 18.12%

MU   14.35%

OWW  6.46%

GRPN 6.27%

Exposure 179%

Next post by 2 PM on Sunday.

Market is open in Canada, Asia & Europe on Monday.

Enjoy your Memorial day long weekend.

BLOG does NOT give buy or sell.

Saleem

2 comments:

stocktrader_1996 said...

Hey Saleem,

In a week that finally saw new highs for the S&P, I gained 1.01% versus the S&P's +1.21%.

Weekly Winners: DATA (+11.0%), PFPT (+8.5% upon sale), YELP (+6.5% even with missing some upside in a sell/buyback higher)

Weekly Losers: WLH (-2.8% because of a losing sell/buyback)

YTD Info:

Portfolio: -5.01%
S&P 500: +2.82%
Russell 2000: -3.22%

I followed through on my plan this week selling my hedge TZA as well as many stocks on Tuesday. This flattened out the portfolio a lot. Unfortunately, Tuesday also marked the bottom for the week and I did not participate in much of the rally until adding some more exposure Friday. Here's the current portfolio:

Cash: 48.6%
Stocks (8.7-6.5% each): FB AXLL WLH DATA YELP PANW SPLK

Closed Positions: NOW AAL TZA GM PFPT Z
New Positions: FB PANW
Sell/Buyback: AXLL WLH YELP SPLK

We can safely say at this point that my prediction skills on the market are currently low. I'd been calling for a grind upwards in the markets for weeks, until last week when I finally decided on neutrality. The actual market was neutral for weeks, and then suddenly made some new highs last week, so I've been behind the curve for a while now. This has impacted my portfolio performance, and I'm still not sure how to allocate going forward to see outperformance.

There are some interesting earnings this week including portfolio names PANW (Wed PM) and SPLK (Thu PM), along with watched names like JKS (Tue AM), WDAY (Tue PM), and QIHU (Tue PM). I like the setup for PANW into earnings, but fear SPLK's outlook due to a new sales head. I will likely sell SPLK ahead of its earnings, and it would be nice to see a runup into the number for a good exit point.

My current preference for stocks includes the housing names and select internet/cloud names, but I am still uncertain of my own ideas, and wonder how month-end will affect many of these beaten down stocks. Many of the software names are up ~15% from their lows, so despite feeling like these are beaten down, are we actually ready for a pause already? I will be cautious in trading for a while still, and hopefully find good bargains.

In summary, we have to accept the new highs the market has given us. The time is right to buy on dips, and given the "summer volumes", there should be decent opportunities. Many market participants will be chart readers and strong stocks should stay strong--it is hard to have major sentiment changes in summer.

Let's see what we can do now! :)

Stocktrader

Stocks100 said...

Hi Stocktrader,

Good luck with earnings and your portfolio.

Being cautious is the right approach.

Saleem