Nasdaq is 8 points below 50 DMA, S&P 500 is 24 points below 50 DMA....DOW is 306 points away from 50 DMA.......
It is important to know where the strength was & is still showing relative strength.......
SO..it is the technology sector which showed strength in this slump...IF you had higher exposure in this sector, you have done relatively well compared to Dow based exposure which showed weak TAPE and even went below 200 DMA...
TAPE was deeply oversold by Thursday based on many international conflicts it took 11 trading day's to get to support, enthusiasm for continued fighting seems to be abating which will give breathing room for indices to find resistance, battle fatigue is good for bullish move.
There is Option Expiry on Friday which is weekly & Monthly which should add to upward pressure. Put has reached extreme bearish reading of .70 which always starts a rebound.
SO..we may be looking @ a very good opportunity to recover our losses & hopefully make some money. This requires staying with your high comfort level stocks. From deeply oversold to overbought level may be weeks away.
TAPE is giving another opportunity to make money off bottom in many stocks, stay away from "so-called experts on CNBC" as they overplay their intellect about stock movement, they are generally stuck in past TAPE action & never looking ahead for "major opportunities"
Pick your stocks based on strength not on "bargain"
PCLN reports before open & may provide the fuel for a major move UP, all travel stocks are making new 52 wk highs already like EXPE & OWW.....now it is PCLN turn......
Good luck with your pick / portfolio, we are looking @ better times ahead.
BLOG does NOT give buy or sell.
Saleem
8 comments:
Hey Saleem,
Bought some DRYS @ 2.90. Trying the shippers again...it looks like the $BDI might be gaining some traction finally.
Stocktrader
Hi Stocktrader,
Good luck with DRYS.
Saleem
Hey Saleem,
What do you think about the Chinese solars? It seems like a lot of positive news flow is coming their way, but they are serial disappointers. I was considering JKS.
Stocktrader
Hey Saleem,
I went for it at $26.00.
The stock started shooting up as soon as I wrote the post, and I didn't want to get left behind any further. (This kind of chase usually ends up being a poor entry, but I think the stock might breaking out nicely soon.)
Stocktrader
Hi Stocktrader,
So far SPWR, FSLR,SCTY has given poor results.....thus not excited about prospect for Chinese Solar stocks.
Saleem
Hey Saleem,
That is a great point, and was the rationale for my hesitation the last time I spoke about them.
I just wonder with the Chinese market touching 2014 highs and a forward P/E of ~5.2 if investors will gravitate towards these stocks as a cheap way to play "China" and with positive deal flow behind them, even if execution remains subpar.
Stocktrader
Hi Stocktrader,
I hope your thesis comes to fruition.
Saleem
Hey Saleem,
As soon as I buy...figures...
12:42 EDT JKS, SOL, CSIQ, JASO, YGE
theflyonthewall.com:
China solar company estimates lowered at Credit Suisse
Credit Suisse lowered estimates on Chinese solar companies due to continued weak pricing and lower margin expectations. The firm expects Q2 reports to be roughly in-line with guidance with reduced Q3 margin expectations. :theflyonthewall.com
Stocktrader
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