Thursday, January 7, 2016

Indices closed down 2.32% to 3.03%.....

Indices closed down.

S&P 500 @ 1943.09, 1938.83, high 1985.32

RSI @ 32.04

CMF @ -0.088

Internals were :

Down volume led by 8.30 to 1 in NYSE & 8.61 to 1 in Nasdaq

Declining stocks led by 6.52 to 1 NYSE & 6.39 to 1 in Nasdaq

Net new 52 wk lows were leading by 482 in NYSE & by 341 in Nasdaq

VIX UP 21.37% @ 24.99

Oil @ $33.27

Gold @ $1107.80

AH ER...SODA UP 8.72%, CRUS Down 4.85%
                QRVO Down 11.28%

AH Futures UP

AH Asian Markets Mixed

AH Oil UP

AH Gold Down

About market, TAPE panicked in US on Chinese exchange shut down and closed near low. Most participant have not seen shut down of 2 major exchanges in 30 minutes of trading. Sell first and wait for sanity to come back in world markets does not match with opportunities which may have been staring @ everyone. CNBC is panic driven tonight and creating a scenario of who can top this in panicking, tomorrow they all may regret what they said. When RSI hit 32.04, it is a safe bet to be in market not out. My exposure is highest ever not because i want to lose my capital but a measured entry into high reward and less risk scenario.

BLOG does NOT give buy or sell.

Saleem

16 comments:

Unknown said...

Hi Guys,

I sold 50% of my RLYP @ 22.45. I had 1500 shares in my retirement account. I just wanted to lighten my holding.

Gl

Joseph

stocktrader_1996 said...

Hi Joseph,

Nice one day gain! No harm in taking profits in this market--still tough ever day.

Stocktrader

Unknown said...

Hi Stocktrader,

I do agree with you that the days ahead will be tough. Everyone has their own comfort level. I usually take my profit often. However I must admit that I have the bad habit of holding stocks that are broken. I must have the gut to take loses as well. Thanks for bringing to my attention - RLYP. The stock has been falling. Hope it will reverse its current trend.
Good Luck

Joseph

stocktrader_1996 said...

Hi guys,

Sold SPLK @ 53.2093, Bought URI @ 62.30

I think the SPLK chart is challenged and the fear of the Fed is really hurting the growth stocks that don't generate earnings yet (this is also hurting RLYP).

I wanted to revisit my URI thesis of nice construction during Q4--I think today's jobs number reinforced that view. I also think the potential for some kind of oil spike is possible given how everyone is calling for lower lower lower.

Stocktrader

stocktrader_1996 said...

Hi Joseph,

I'm afraid on RLYP that it really will take a buyout for it to realize its true value. The "peak sales in 2020" view of drug companies is just not cutting it in this "Fed against us" environment.

Stocktrader

Unknown said...


Thanks Stocktrader for sharing the information on RLYP. So it was a good decision to sell part of it. I was planning to buy more today. I will rethink about it. Hopefully things will turn around.

Good luck

Joseph

stocktrader_1996 said...

Hi Joseph,

On an EV/peak sales basis (on which most small drug companies are valued), RLYP is extremely cheap (up to 3x potential: $60), and they have plenty of cash to last the entire year. The market sentiment is just against everything biotech--look at the darlings from last year, BLUE KITE GWPH...just major disasters in last few months.

Stocktrader

Unknown said...

Hi Stocktrader,

I sincerely thank you for giving me more information on RLYP. Thanks a million.

Joseph

stocktrader_1996 said...

Hi Saleem,

The Russell 2000 is touching Oct 2014 and 200 weekly MA support today. I would be surprised if it breaks after already exhausting itself in recent weeks, but is something to watch for the future.

Stocktrader

Stocks100 said...


Hi Stocktrader,

Just got home after installation of GPS / Backup camera / DVD player in my car.

Had Parking sensor but it was not enough when in reverse.

Very happy with installation and quality.

Russell and all indices are deeply oversold and a sharp snapback must not surprise anyone.

I remain very comfortable with oversold conditions.....

As they say Patience is a virtue.

Saleem

Stocks100 said...


Hi Joseph,

Good move with 50% sale of RLYP..a buck is a buck anyday.

Saleem

Stocks100 said...

Hi Stocktrader,

Good luck with URI.

Saleem

Unknown said...

Hi guys,

Bought XIV @ 21.02. Just for a trade.

Joseph

Stocks100 said...


Hi Joseph,

Good luck with XIV.

Saleem

Unknown said...

Hi Saleem,

I never expected the market would go down so much. As you said, we have to be patient. I hope the market will open higher on Monday.

Hope for the best and prepare for the worst.

Good luck.

Joseph

Stocks100 said...


Hi Joseph,

There is a famous saying on wall street "market will do what it wants to do"

BUT we need our own plan to benefit from "mispricing"

Good luck!

Saleem