Indices fought back on Fed minutes and finished in upper quarter of the range.
S&P 500 @ 1982.30, low 1969.04, high 1991.40
RSI @ 58.91
CMF @ 0.093
Internals were :
Down volume led by 1.52 to 1 in NYSE & 1.37 to 1 in Nasdaq
Declining stocks led by 1.33 to 1 in NYSE & 1.14 to 1 in Nasdaq
Net new 52 wk highs were leading by 138 in NYSE & by 73 in Nasdaq
VIX UP 5.28% @ 15.15
Oil @ $82.20
Gold @ $1224.90
AH ER... FFIV UP 2.89%, JDSU UP 3.94%
V UP 4.21%
AH Futures Down
AH Asian Markets Mixed
AH Oil & Gold Down
About market, Fed ending of Bond buying brought selling but recovered nicely by close. Interest rate will remain low for a long time, which is very bullish for equities. We should resume upward move by Thursday's close. It is important not to be spooked by supercomputers knocking indices down on non-events. This is a TAPE which requires tremendous amount of conviction in a well diversified portfolio.
BLOG does NOT give buy or sell.
Saleem
16 comments:
Hey Saleem,
I've often found that the day *after* the Fed announcement is a better indicator of the next market direction. If we rally tomorrow, I don't see anything stopping a year-end push. I will allocate my cash aggressively if the action is constructive.
Stocktrader
Hey Saleem,
Added to LUV @ 34.17.
I can't think of a much better play on a good US economy and low oil/gas prices.
Stocktrader
Hi Stocktrader,
TAPE has tremendous strength no matter what is thrown at it.
Good luck with mucho LUV.
Saleem
Hey Saleem,
Bought FDX @ 164.54.
Stocktrader
Hi Stocktrader,
Good luck with FDX..your fav 20 stock.
Saleem
Hey Saleem,
Added to GS @ 186.04.
Stocktrader
Hey Saleem,
Yes, I am adding to my favorites, and those with good relative strength. I think generally the trend that has been in place is still the dominant trend, hence the best performers are still the place to be.
Stocktrader
Hey Saleem,
Added to SPLK @ 64.10.
Given how volatile SPLK is, my position size is now quite large. I think the fundamentals and technicals still line up perfectly for a great run.
Stocktrader
Hi Stocktrader,
Good luck with addition to SPLK, GS.
Saleem
Hey Saleem,
Added to FDX @ 165.08.
I think a shipping Christmas is in store, and lower fuel prices will help tremendously.
Stocktrader
Hi Stocktrader,
Your thesis on FDX is right on the money.
Saleem
Hey Saleem,
I keep looking at BTU wondering if now is the time. Favorable US elections as well as improved coal demand on the lower prices could be catalysts. BTU has some good Australian assets that are still looking good.
Stocktrader
Hey Saleem,
Articulating my thesis made me buy :).
Bought BTU @ 10.30.
It is only half the size of my larger positions, but given the potential moves in the stock, I thought that allocation was plenty.
Stocktrader
Hi Stocktrader,
Good luck with BTU, sooner or later all commodities will be in vogue including coal.
Saleem
Hey Saleem,
Bought ETN @ 66.16.
I think the worst of their troubles are behind them which means they have some valuation catchup to do.
I've been watching CMI also, but I'm just nervous new truck sales will slow down from nice volumes this year. They has been executing well, so there's not as much "catchup" left in the stock.
Stocktrader
Hi Stocktrader,
Good luck with Eaton Corp.
Saleem
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