RSI @ 37.39 is very close to major support which is above 30, any dip here will become "buy of this season"
It is interesting to note that, indices closed @ absolute low of the day on Friday BUT VIX closed @ 21.08, well below its high of the day @ 23.06.....
IF we dip below 50 DMA then its buy buy buy........S&P 500 is barely above by 2 points.....
Oil @ 6 year low which is reflecting Saudi politics against US shale producers, there is a possibility of major bankruptcies as cost in North America is anywhere from $60 to $70 per barrel.......
Chinese economy has decelerated again to 7.3% in GDP, they are planning for 7% in 2015, so more pain for many commodities......
BUT...the only bright spot is World's biggest economy USA, which is humming along @ a fast clip.
Do not be surprised, IF Fed statement on Wednesday, may indicate a shift in interest rate outlook for an increase in first half of 2015.
SO....IF you factor collapse in Oil prices, Chinese slowdown, European economic mess, indices have made a quick adjustment to be near support.
SO..be ready for buying quality stocks and show conviction, many stocks are ready to jump back UP like AAPL, SWIR,MU, NXPI,QIHU,YY,TRLA,LNKD,KORS,FB,TWTR to name a few.......
Do NOT look in rear view, always plan ahead to profit.....
We may be staring @ the-best buying opportunity of 2014......
Good luck with your strategy !
BLOG does NOT give buy or sell.
Saleem
10 comments:
Hey Saleem,
It was s rough week and the portfolio lost 2.30% versus the S&P's -3.52%. The only real winner I had was DATA (+3.3% upon sale) after multiple buy initiations.
I started selling mid-week, leaving the portfolio with 70% cash by the end of the week.
Even though technical factors might possibly bring the market down further first, I do think the "real" direction is higher as you suggest also. I did some work over the weekend, and a huge decline in oil does not usually spark the contagion effect needed to bring the whole market down for an extended period.
I'm looking to be a buyer.
Stocktrader
Hi Stocktrader,
"market has spoken "
Saleem
Hey Saleem,
Bought FB @ 77.89.
The chart has shown good strength despite the market downturn so I'm looking for a good run in the next couple weeks as things settle down. I think many fund managers consider it "safe".
Stocktrader
Hey Saleem,
Reluctantly sold SPLK @ 55.802.
The chart is too ugly to attract fresh capital into year end I think. If it regains the 200 DMA, I'll reconsider a purchase.
Stocktrader
Hi Stocktrader,
Good luck with FB.
Saleem
Hey Saleem,
BBRY has a number of catalysts this week. It looks *very* interesting here at $9.65.
Stocktrader
Hi Stocktrader,
Added 150 percent MU @$33.30.
Yes BBRY should fly on Friday.
Saleem
Hey Saleem,
I think it also releases its Classic on Wednesday. If the market overall wasn't so problematic, this stock could be flying. It definitely seems like the tide has turned for the better there.
Good luck with MU too!
Stocktrader
Hey Saleem,
Copper looks like it might be the next to "crash" as it is woefully underperforming today and ticking almost straight down. I'm watching it carefully.
Stocktrader
Hi Stocktrader,
You can thank Chinese GDP trendline for Copper sinkhole.
Saleem
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