Tuesday, May 5, 2015

Indices closed down .79% to 1.55%.....

Indices were in selling mode till close.

S&P 500 @ 2089.46, low 2088.46, high 2115.24

RSI @ 47.77

CMF @ 0.091

Internals were :

Down volume led by 3.94 to 1 in NYSE & 5.73 to 1 in Nasdaq

Declining stocks led by 4.02 to 1 in NYSE & 3.23 to 1 in Nasdaq

Net new 52 wk lows were leading by 14 in NYSE & 33 in Nasdaq

VIX UP 11.36% @ 14.31

Oil @ $60.40

Gold @ $1193.30

AH ER ..AGU Down 2.23%, GRPN Down 3.36%
               ZU Down 17.51%, EA UP 3.62%

AH Futures UP

AH Asian Markets Mixed

AH Oil & Gold UP

About market, TAPE was weak and closed @ low of the day, trigger was fear of slowing economy, all indices are below 50 DMA. This fear of slowdown is totally unwarranted as Fed acknowledged winter slowdown but expect a pick up in economic activity.I see current TAPE as "pattern of trading" since end of 2014, two days UP and 1 day down, this provides strategic buying on down days as next days are generally higher. S&P 500 showed relative strength and can go above 50 DMA @ open. I see no real issue with today's selling.

BLOG does NOT give buy or sell.

Saleem

7 comments:

stocktrader_1996 said...

Hi Saleem,

Good luck with more VDSI!

I've been sick since Sunday, but things are looking up for me today--can't say the same for the market yesterday!

Last week I managed a small gain in the portfolio to bring the YTD to +8.62%. Last week I was helped most by AA (+7.0%) and hurt by AAL and FB (both -3.1%).

The portfolio is currently: SPLK AA C GM FB AAL FRSH (AEMDD). I am sitting on nearly 38% cash.

I've been fortunate to have missed most of the big decliners this earnings season--that seems to have been the key.

I am more nervous about the market than I've been in a while, but I keep getting that nagging feeling like too many people are nervous and therefore we should be full bulls. The technicals are shaky, and many confusing cross-currents are happening right now. The big question I have, which I thought I knew but am now less confident, is whether we get a summer rebound in activity. The economic numbers lately have just been too soft compared to how last year rebounded. The moderating of the dollar strength and oil weakness should help smooth out the imbalances in the world--that would suggest the US is potentially undervalued here.

Hope all is well! :)

Stocktrader

stocktrader_1996 said...

Hi Saleem,

Sold AAL @ 46.843.

I have to wait for oil to stop that run higher--its too much right now for the unhedged AAL.

Stocktrader

Stocks100 said...

Hi Stocktrader,

I am glad that you have recovered.

You are outperforming all averages by quite a few percentage points.

Trader Janet Yellen trying to predict market, she shall fail also..we are going higher.....

Good move in AAL exit...oil is in a bull run now...

Saleem

stocktrader_1996 said...

Hi Saleem,

Sold FRSH @ 17.93 avg.

Despite really liking the name, I fear it has two characteristics not in favor currently--consumer spending and small cap.

Maybe I'll look foolish after it reports a huge number tonight, but I made some good quick money from the buy last Friday.

Stocktrader

stocktrader_1996 said...

Hi Saleem,

Added a bit of cyclical exposure because I felt I was underexposed being at over 50% cash with the sells today:

Bought EMN @ 79.25
Bought URI @ 100.749

Stocktrader

stocktrader_1996 said...

Hi Saleem,

Wow, bad timing on those buys!

Stocktrader

Stocks100 said...

Hi Stocktrader,

Good luck with EMN URI....

Saleem