TAPE was under freefall and closed @ lows of the day.
S&P 500 @ 1928.21, low 1927.56, high 1967.68
RSI @ 39.02
CMF @ -0.081
Internals were :
Down volume led by 10.51 to 1 in NYSE & 6.69 to 1 in Nasdaq
Declining stocks led by 7.44 to 1 in NYSE & 6.19 to 1 in Nasdaq
Net new 52 wk lows were leading by 197 in NYSE & 177 in Nasdaq
VIX UP 24.16% @ 18.76
Oil @ $85.77
Gold @ $1225.30
AH ER... JNPR Down 4.01%, MCHP Down 8.81%
AH Futures Down
AH Asian Markets Mixed
AH Oil & Gold Down
About market, TAPE reversed completely after yesterday euphoria from Fed, we lost all gains & then some. This TAPE has become extremely tough which requires quality stocks in your portfolio, no more shooting darts. Please review your stock picks and buy quality which has future growth, currently everything is being dumped but quality needs to be bought. We need lot more conviction with our picks. We may find support on Friday and may reverse to the UP mode.
BLOG does NOT give buy or sell.
Saleem
11 comments:
Hey Saleem,
This feels more like what I was expecting last week before the oversold bounce. I am generally good at calling tops, but usually get back in way too early (evidence earlier this year in internet/software stocks).
My 100% exposure seems very questionable right now despite the quality stocks in the portfolio. I'm not sure whether to ride it out or sell on another bounce. I'll have to think hard about my next moves--we are getting close to the point where this market will "resolve" quickly in one direction instead of this every other day direction.
Stocktrader
Hi Stocktrader,
I think we are close to discounting all the weakness in Europe, sharp pullbacks resolves that.
No one can time the market but conviction can work out in the end.
I say..stay the course!!!
Saleem
Hey Saleem,
This is the NXPI problem (from the MCHP release):
“We were disappointed with the level of business activity in the September quarter. The September quarter is usually a back-end weighted quarter because of a traditional weak August due to holidays in various parts of the world. The month of September is usually a strong month for our revenue after the summer holiday period. This time, the September sales did not materialize to our expectations. The revenue miss was led by China where the September quarter is traditionally the strongest. This time, sales in China, excluding ISSC, are expected to be down sequentially,” said Steve Sanghi, Microchip’s President and CEO.
Mr. Sanghi added, “Microchip often sees the turn of the industry ahead of others in the semiconductor industry. First, in contrast to many others in the industry, we report sales from distribution on a sell-through basis worldwide. We built a significant amount of inventory in the distribution channel in the September quarter. If, like many others in the industry, we recognized sales on a sell-in basis to our distributors, our sales would have been significantly higher for the September quarter. Second, Microchip does business with over 80,000 customers worldwide, most of whom are small and nimble and are able to adjust their demand in real time. We believe that another industry correction has begun and that this correction will be seen more broadly across the industry in the near future.”
Stocktrader
Hi Stocktrader,
Thanks for this note.
Saleem
Hi Stocktrader,
Sold SWIR @ $23.77 to reduce exposure in Semiconductor sector.
Saleem
Hey Saleem,
I'm upset I didn't follow my instinct better on the semi cycle top (see note yesterday with NXPI buy). At least earnings expectations are much lower now for the group...
Stocktrader
Hi Stocktrader,
We all are price driven and forget as to why price is lower?
Saleem
Hey Saleem,
NXPI intraday note:
13:50 EDT NXPI theflyonthewall.com:
NXP Semiconductors buy on weakness, says Sterne Agee
Sterne Agee recommends buying NXP Semiconductors (NXPI) on weakness related to Microchip (MCHP). The analyst said NXP Semiconductors is a much different company than Microchip and will benefit from a Ford (F) ramp in automotive, micro controllers in the new iPhone and Ipad, and EMV tailwinds. :theflyonthewall.com
Stocktrader
Hi Stocktrader,
Good report..Thanks
Saleem
Hey Saleem,
Sold ACHN @ 10.00.
I bought this for technicals and they've gotten squishier. I don't really know the fundamental story well enough to have confidence.
Stocktrader
Hi stocktrader,
Good move to improve comfort level.
Saleem
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