Despite 14 year high in consumer confidence TAPE was sluggish on Fed statement concern.
S&P 500 @ 1985.54, low 1980.26, high 1996.74
RSI @ 50.75
CMF @ 0.266
Internals were :
Down volume led by 2.95 to 1 in NYSE & 1.70 to 1 in Nasdaq
Declining stocks led by 3.90 to 1 in NYSE & 1.98 to 1 in Nasdaq
Net new 52 wk lows were leading by 22 in NYSE & highs by 20 in Nasdaq
VIX UP 3.98% @ 13.31, high today 14.27
Oil @ $92.27
Gold @ $1231.50
Canadian $ @ 89.24...@ 6 months low on US$ strength
Stocks which closed green included EGO LULU MITL
TSL YHOO OTEX KORS GRPN CSIQ DNKN
EBAY FSLR SPWR YNDX CCJ DATA
CSOD MS GS AGU TRIP....
In my portfolio :
Bought AKS @ $9.26
Here is my weighting :
LULU 22.46%
MITL 17.93%
MU 16.79%
FB 13.75%
EGO 13.29%
RAD 10.93%
AKS 4.85%
Exposure 205%
Next post by 2 PM on Sunday.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hey Saleem,
In an expected pullback week, the portfolio lost only 0.37% versus the S&P's -1.10% and the $RUT's -0.81%.
Weekly Winners: PFPT (+5.9%), SRPT (+3.8%), WLH (+2.5%)
Weekly Losers: DRYS (-7.8%), GM (-3.0%), CMI (-2.8%), AGU (-2.2%)
YTD Info:
Portfolio: +5.01%
S&P 500: +7.42%
Russell 2000: -0.26%
I executed last weekend's plan by cutting exposure on Monday. After Monday and Tuesday's down days, I did some bargain hunting with a pickup each on Wednesday and Thursday. Here's how the portfolio looks now:
Top Weightings (9.3->7.4%): GS JKS
The Middle (6.6->5.5%): CMI WLH GM AAL SPLK AGU AKS NXPI PFPT DRYS BWLD
Speculative Weighting (3.0%): SRPT
Cash: 14.0%
New Positions: AKS
Closed Positions: FDX HUN
Sell/Rebuy: NXPI
The lack of fresh catalysts hurt the market this week as investors locked in profits. This new week brings fears from the Federal Reserve and world growth concerns.
Many investors are looking towards the Federal Reserve meeting this week for clues as to the pace of the "normalization" of policy. There is speculation the Fed will change the language to indicate a more hawkish stance. Although this is the result of a strong economy, the fears of such a move could bring more selling ahead of the announcement.
A wildcard in the picture this week is the Scottish independence vote. This serves mostly to just bring uncertainty ahead of what looks to be a close vote. The US could be insulated from any decision, although a "yes" vote could further strengthen the dollar, which is starting to weigh on multinational and commodity stocks.
We finally see the long-awaited Alibaba IPO which starts trading on Friday. I'm actually not sure if or how this might affect the broader market, but it should be a spectacle regardless.
Further slowing signs from China could exacerbate an already weak picture for commodities. Although weaker commodities should theoretically be a boon for most stocks, it has a dampening effect on sentiment when the demand picture looks suspect. I think it will take some time to find the right balance here.
Altogether, I think the market remains vulnerable, but short bets should not be overplayed. The S&P has a strong support band from 1960-1980 including the 50 DMA at 1972.59 and a balanced RSI at 50.75. Stock selection I think will still win out here, although smart entry prices are key.
Good luck to all in an event filled week! :)
Stocktrader
Hi Stocktrader,
Another better than indices performance for you.
We are looking @ market with some concern which hopefully will be resolved by end of the week.
Saleem
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