TAPE has been struggling with overbought conditions & have been successful in keeping all its gains. We have been UP for four straight weeks.
This week is option expiry for weekly & monthly options, generally this brings volatility.
Fed minutes will be released on Wednesday which triggers language based reaction.
Consumer is feeling pretty happy @ 89.4% confidence readings.
Bulls @ 54.6%
Bears @ 15.1%
Bull bear ratio is yet to hit extreme reading of 60% in bulls.
Momentum is slowing & money managers have allocated funds to equities.
We may have a go nowhere market this week, IF we pull back we have a strong support in 2000 area in S&P 500.
Many sectors and stocks are working against all odds, AAPL, SWIR, BBRY,AMZN,MA to name a few are showing strength.
Gold,Silver, Uranium have broken resistance and are moving higher nicely.GLD has broken out and GDX is ready to do the same.
Seasonally we are in a strong couple of months.
@ worst, option expiry & Fed minute may put some pressure on the TAPE, but we may find willing buyers on any weakness.
Looking ahead to Christmas related buying & low low gas prices, we may be ready to reward investors & traders.
Good luck with your strategy !
BLOG does NOT give buy or sell.
Saleem
8 comments:
Hey Saleem,
I had my first outperformance week in a while, +1.05% versus the S&P's +0.39%. TASR was a big winner, up 9% on the week.
The S&P chart, despite nice consolidation last week, is showing signs of short term tiring. A pullback into the 2000-2020 level would set up a nice move into year end, but there's also still a decent chance we just grind higher into year end. Either way, I'm expecting higher prices by Jan 1st.
SPLK reports this week--I am ready! :)
Stocktrader
Hi Stocktrader,
Congratulations on TASR and outperformance.
Good luck with SPLK earnings.
Saleem
Hey Saleem,
Any thoughts on RUTH? We have one in our area and I've been watching this for a while trying to find a good restaurant stock that hasn't run too much yet
Today's divestiture of the underperforming non-name brand restaurants plus the new stock repurchase plans could refocus management and indicates confidence in the core business?
Stocktrader
Hi Stocktrader,
RUTH looks very good, less than .5 billion market cap,81cents next year earnings, sales growing low single digit and $50 million dollars buyback..all positive..
Saleem
Hey Saleem,
I had 0.5% cash left and bought a very speculative stock ($0.39875 price) with that cash. I hesitate to mention the ticker, but it's a very small cap stock that had news on Friday.
Stocktrader
Hi Stocktrader,
Good luck with your speculative bet.
Saleem
Hey Saleem,
Trimmed a little from FDX and GS to buy RUTH @ 12.595 (ugly price but took me a while to make a decision).
Portfolio is now GS SPLK FDX HUN ETN AAL RUTH TASR (spec).
Stocktrader
Hi Stocktrader,
Good luck with RUTH and your portfolio...its never too late.
Saleem
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