Indices closed down.
S&P 500 @ 2099.93, low 2090.41, high 2108.78
RSI @ 66.06
CMF @ 0.203
Internals were :
Down volume led by 1.21 to 1 in NYSE & 1.61 to 1 in Nasdaq
Declining stocks led by 1.05 to 1 in NYSE & 1.15 to 1 in Nasdaq
Net new 52 wk highs were leading by 28 in NYSE & by 18 in Nasdaq
VIX Down 2.97% @ 15.05
Oil @ $45.20
Gold @ $1104.20
AH ER....TRIP Down 8.34%, SWIR Down 18.3%
NVDA UP 9.85%, QRVO UP 13.8%
AH Futures Down
AH Asian Markets Mixed
AH Oil & Gold UP
About market, TAPE was resilient again and barely moved lower. It is all about jobs report, consensus is anywhere from 180K to 185K. Market is positioned to move higher after jobs report comes out, TAPE has its own momentum, generally any one news does not get in its way, expect a positive close on Friday. This TAPE wants to to make a new all time high despite many pundits who seems to be scrambling to put their own thesis forward, it changes day by day and hour by hour, not a reliable investment approach.
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Saleem,
Added a very small speculative position in RLYP @ 19.05. Looking to add a bit more by close. A competitor just got bought for a large premium and this company is ahead of that one. I'm not very familiar obviously, but the setup looks decent.
Stocktrader
Hi Saleem,
Added more @ 18.819. Now at my desired level which is still very small.
Stocktrader
Now it is almost certain that fed will raise interest rate soon. The employment report is excellent. And that is why the market is down. What do you think?
Hi Joseph,
You got it exactly right. The market has run on "easy money" for so long that the immediate reaction to such a strong number is to sell. However, if the economy is truly strengthening, we should see earnings estimates rise. Today is a big game of which companies can do better in a cyclical upturn. Everyone will sell first on uncertainty but then people will pick at the ones they like. Overall, I suspect market players are holding enough cash such that we can find support. Even in my case I entered the day with 20% cash even though I'm very bullish on the market--the dramatic move higher leaves a lot of people behind.
Stocktrader
Hi Saleem,
Bought URI @ 78.051
I wanted some more cyclical exposure and URI seems perfect. It reported a good quarter and guidance to the surprise of many analysts, putting institutional investors "behind the curve". It benefits from the new infrastructure spending bill approved by Congress giving an extra tailwind. The chart looks constructively bullish at least up to the 200 DMA and the valuation is reasonable.
Stocktrader
Hi Stocktrader,
Good luck with RLYP & URI.
Saleem
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