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:
Hey Saleem,
I am more optimistic but the summer is always difficult to navigate.
Stocktrader
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
Hey Saleem,
Any thoughts on the solars right now? Obviously, I'm a JKS fan, but CSIQ is interesting too.
Stocktrader
Hi Stocktrader,
Both JKS and CSIQ are strong buy.
Saleem
Hey Saleem,
I might buy after one of them pre-announces.
Stocktrader
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
Hi Stocktrader,
YES..i saw WTO ruling which will benefit TSL, JKS & CSIQ....
Good luck with your entry.
Saleem
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