Indices closed lower.
S&P 500 @ 1990.26, low 1979.05, high 2011.71
RSI @ 38.40
CMF @ -0.029
Internals were :
Down volume led by 5.71 to 1 in NYSE & 3.88 to 1 in Nasdaq
Declining stocks led by 2.97 to 1 in NYSE & 2.49 to 1 in Nasdaq
Net new 52 wk lows were leading by 223 in NYSE & by 152 in Nasdaq
VIX UP 6.46% @ 20.59
Oil @ $33.97
Gold @ $1091.90
AH Futures Down
AH Asian Markets Down
AH Oil Down
AH Gold UP
About market, TAPE was under severe selling pressure on Chinese weak economic data & North Korean underground testing. Indices are @ 3 month low. Chinese Central Bank is weakening Yuan for several days to bolster markets and it did work yesterday. Tonight Two biggest Chinese exchanges are tripping circuit breakers after being down 5% which meant trading halt for 15 minutes. IF they are down 7% then the exchange is shut down for the day. On the positive side, economic reports are robust in USA, as in the past, markets will stabilise first in USA then Europe followed by Asia. Asia is taking turn after US slide. We are deeply oversold in USA IF you look @ RSI @ 38.40, look for a rebound soon.
BLOG does NOT give buy or sell.
Saleem
9 comments:
Hi Saleem,
Swapped some JKS @ 24.42 for more RLYP @ 20.4539
Stocktrader
Hi stocktrader,
Bought RLYP @ 20.80. GL
Joseph
Bought more FCX @ 5.93
Joseph
Hi Stocktrader and Joseph,
Added 70% JKS @ 24.03.
Saleem
Hi guys,
Good luck to everyone with the repositioning. I think China will actually be up overnight, so many stocks will likely work through tomorrow.
As I carefully examined my portfolio this morning, there were only three stocks in which I didn't feel confident about earnings: BAC WLH JKS.
With BAC, I feel like if I wanted any financials exposure, this domestically focused, deposit-based bank could work best.
With WLH, I am still concerned about the short term, but wanted to see how things played out, especially with the CEO's recent large purchase of shares. I also feel like investors generally are unfairly discounting the homebuilders prospects as they expect the Fed to raise rates. Healthy job growth, still low 30-yr rates, insane rents, and "pent up" demand from millenials could give a continued steady rise to prices/sales.
That left JKS as the first (and maybe only) potential sell.
Portfolio: RLYP GM BAC LNKD SPLK PLNT DAL WLH CF FIT
Stocktrader
Hi Stocktrader,
Sold FIT @ $20.55
Added 80% BIDU @ $174.51
Saleem
Hi Saleem,
Good luck with BIDU. FIT has been a disaster.
Stocktrader
Hi guys,
It seems 2016 is going to be a difficult year for us. I think we need to be careful. Every bounce should be an opportunity to sell. I have 40% cash. Hope things will turn around.
Good luck
Joseph
Hi Joseph,
I feel like a fool that I didn't sell after the December Fed meeting when I felt the dread of the Fed "against us" in my high growth stocks. I got lulled into some complacency by year end effects that helped too much, but then unwound viciously this year so far. You are right, market looks like a sell on bounces for a while. I'm hoping for S&P ~2000.
Stocktrader
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