Jobs growth of 248 K lit the fire on Wall & Broad. Previous months were all revised UP.
S&P 500 @ 1967.90, high 1971.19, low 1948.12
RSI @ 45.80
CMF @ 0.041
Internals were :
UP volume led by 2.87 to 1 in NYSE & 3.00 to 1 in Nasdaq
Advancing stocks led by 2.10 to 1 in NYSE & 1.94 to 1 in Nasdaq
Net new 52 wk lows were leading by 39 in NYSE & by 20 in Nasdaq
VIX Down 9.96% @ 14.55
Oil @ $89.74
Gold @ $1192.90.....lowest level since February 2010..talk of being deeply oversold ???
Canadian $ tanked 1.05 cent @ 87.44, exports fell dramatically to create a trade deficit instead of surplus...
Stocks which were UP 1% or more included NXPI SWIR
LEN JCP QIHU YY TWTR EXPE YHOO LNKD
TSLA KORS GRPN BABA NFLX AMCC
PANW M GMCR SPLK SBUX MA V
DATA SPWR CSOD MS LVS GS
AMZN DNKN CMG FFIV C
ONVO BSFT ARUN
SNDK.....
Here is my weighting :
LULU 23.46%
SWIR 21.11%
MU 20.29%
EGO 19.83%
NXPI 10.74%
AKS 4.57%
Exposure 195%
BLOG does NOT give buy or sell.
PS...Next post by 2 PM on Saturday.....this is a change due to religious holiday for Muslims on Sunday.
Saleem
4 comments:
"Gold @ $1192.90.....lowest level since February 2010..talk of being deeply oversold ???"
My theory is the Russians are dumping their metals in desperation. I like the Russians, but I believe the sanctions are strangling them.
And India sold some of its reserves I want to say? The dollar continues to deflate too.
I'm sure gold will be the big thing at some point though. Maybe it won't be until after the US elections in November though. The economy has to look strong until then.
Or perhaps the market expects deflation presently and so doesn't want to hold gold.
Hi Firebird,
Those may be the reason ..but it is all factored in @ this price.....
Saleem
Hey Saleem,
Another very volatile week saw the portfolio lose 0.06% versus the S&P's -0.75% and the $RUT's -1.30%.
Weekly Winners (of prior holdings): SPLK (+6.6%), PFPT (+3.8%), GM (+1.8%), GS (+1.6%), BWLD (+1.3%)
Weekly Losers (of prior holdings): DRYS (-13.0%), JKS (-12.1%), AKS (-10.2%), AGU (-7.4%), WLH (-5.4%)
YTD Info:
Portfolio: +0.43%
S&P 500: +6.47%
Russell 2000: -5.06%
I stayed out almost the whole week, trying a short trade with SPLK that didn't work out (due to my impatience only though!). Here's the portfolio...
Cash: 100%
After seeing the S&P drop precipitously intraweek, then rebounding viciously starting Thursday late morning, where do we go from here? Honestly, I'm not sure.
We are now entering the earnings season where companies show their ability to make profits in sometimes difficult environments. We've seen this time and time again over the last 5 years which has fooled many traders as sluggish economies are not translating into sluggish stocks. With materials costs taking a huge dive during the quarter and very nice US economic strength, we could again see many companies beat estimates. Major headwinds to watch could be the very strong US dollar and weakening growth oversees. If we put the strengths and weakness together, we see how certain companies might do better than others, although much of the worst might be "baked in" given the huge multi-week declines in many global cyclical companies.
One of the biggest problems right now is the technical setup, which is still negative. Despite huge late-week gains, all the averages ended lower for the week and most remain under key moving averages. The divergence of the $RUT increased again, counterintuitive to the strong US economy, although likely due to fears of Fed tightening and removal of "easy money" policies. The $RUT is often a leading indicator for the broader stock market, and therefore we need to continue monitoring this divergence.
Being a stock picker and not a market timer at heart, I see value in many companies. I look at many US-centric growth companies which are seeing continued expansion despite world problems. I see some quality global companies very cheap due to their large declines recently. As interest rates remain low, steady dividend payers look attractive as a bond alternative. If we add all this up, can we really see much downside in the overall markets? I think maybe we can pick at some values here, assuming the world doesn't deteriorate even more quickly.
Overall, the downside may have been exaggerated given the solid growth in the US and accommodative policies around the globe in regions that are facing issues. The fourth quarter is traditionally a very good time for the market, and small caps often lead this charge. I think there's a very real chance for a big move in small caps given their "hated" status, yet being in possibly the best position in the world right now--the US growth is strong and money is still cheap (bonds not moving due to world problems). I am hoping for any kind of pullback to be able to add to some of my favorite stocks ahead of the new year.
Good luck to all as earnings season begins! :)
Stocktrader
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