Sunday, July 13, 2014

TAPE to stay in neutral to negative mode for rest of summer ?

TAPE has entered a neutral to negative mode for rest of summer.

Earnings expectations are too high for Sales & EPS.....

Many traders & hedge funds are sitting out this market for now....

Markets are considered "too high" & vulnerable to "severe downward push"

Carl Icahn / Carter Worth are warning about this market....

VIX is spiking...a sign of trouble ahead

Geo-political tension is spiking to dangerous level in Gaza, Iraq, Ukraine.....

When markets are @ lofty level everything matters......

I see this summer as quite troubling for this market....

TAPE may not improve until 2nd week of October ?

SO......what to do & how to deal with all of the above...

Strategy needs to be adjusted immediately....

What worked before is extremely vulnerable now

What did not work before may offer hope

Swing trading may be the best idea going into October....

Neglected stocks / sectors may come to life......

Gold / Silver may be the biggest beneficiary of summer issues.....

Increasing or adding Gold / Silver exposure may be the best idea i can come up with.....

It is OK to have 1 or 2 stocks going forward until there is clarity about technicals....

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Saleem




7 comments:

stocktrader_1996 said...

Hey Saleem,

I am more optimistic but the summer is always difficult to navigate.

Stocktrader

Stocks100 said...

Hi Stocktrader,

I am happy to see futures being strong which gives us the opportunity to sell and be nimble.

I am worried about guidance in this earning season.

Saleem

stocktrader_1996 said...

Hey Saleem,

Any thoughts on the solars right now? Obviously, I'm a JKS fan, but CSIQ is interesting too.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Both JKS and CSIQ are strong buy.

Saleem

stocktrader_1996 said...

Hey Saleem,

I might buy after one of them pre-announces.

Stocktrader

stocktrader_1996 said...

Hey Saleem,

The reason I brought them up was the WTO decision today and some more indications of China's war on pollution announced over the last few days.

Forward P/Es are so low if the earnings estimates hold...

Stocktrader

Stocks100 said...

Hi Stocktrader,

YES..i saw WTO ruling which will benefit TSL, JKS & CSIQ....

Good luck with your entry.

Saleem