Tuesday, January 19, 2016

Indices closed mixed....

Indices closed mixed.

S&P 500 @ 1881.33, high 1901.44, low 1864.60

RSI @ 31.52

CMF @ -0.102

Internals were :

Down volume led by 2.27 to 1 in NYSE & 1.51 to 1 in Nasdaq

Declining stocks led by 2.04 to 1 in NYSE & 1.91 to 1 in Nasdaq

Net new 52 wk lows were leading by 720 in NYSE & 464 in Nasdaq

VIX Down 3.59% @ 26.05

Oil @ $28.46

Gold @ $1089.10

AH ER...IBM Down 3.82%, AMD Down 6.15%
               NFLX UP 6.84%, CREE UP 7%

AH Futures Down

AH Asian Markets Mixed

AH Oil Down

AH Gold UP

About market, TAPE was erratic, first UP and then Down then slightly mixed, not a vote of confidence today. After weeks of selling i was expecting more spirited buying. Oil is the epi centre of this TAPE, unless oil turns UP, i do not see how we can go up in a sustained manner. There is lot of implications for low oil, like loan losses and worst case even bankruptcy for some companies. In the mean time stay with conviction as " deeply oversold conditions exists "

BLOG does NOT give buy or sell.

Saleem


11 comments:

Stocks100 said...

Hi Stocktrader,

Sold CY @ $7.48
Sold BBRY @ $6.50

Saleem

stocktrader_1996 said...

Hi Saleem,

Sold WLH @ 11.00

TWTR @ 16.29

Stocktrader

stocktrader_1996 said...

Hi Saleem,

Good moves to prune the portfolio.

As for my moves, I sold WLH because of its high leverage with the transaction in 2014 and I picked up TREE to capitalize on low rates.

I bought TWTR because its enterprise value is under 10B. That seems too cheap for a product so unique and international. There are many potential positive catalysts like the CEO making a choice on which company he is running, as well as shorter term events like the Olympics and Election. The short interest makes it a squeeze candidate if *anything* good happens.

Stocktrader

stocktrader_1996 said...

Hi Saleem,

One housekeeping point, I forgot my sell price already on WLH, thought I did 11.00 but it was actually 10.95.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Pruning weak stocks is a wise move considering market conditions.

Saleem

Stocks100 said...

Hi Stocktrader,

Bought AMZN @ $552.64.

Saleem

Stocks100 said...

Hi Stocktrader,

Sold VDSI @ $ 13.76
Bought BABA @ $65.69

Saleem

stocktrader_1996 said...

Hi Saleem,

Good luck with the repositioning. Just got back after being gone for 2.5 hours. Glad to see some stocks of mine poking green finally: RLYP TWTR TREE OMED. Maybe a sign that we are finally seeing some bargain hunting in stocks not affected directly by oil or the economy.

Stocktrader

Tom said...

Hi Saleem, You have bought 3 type of Chinese stocks. Do you think China economy will turn around soon? Or you just think the current prices give opportunities?
Because I'm long on those three and pay more attation.
Thanks,
Tom

Stocks100 said...

Hi Tom,

First I like prospect of 3 Chinese companies, yes I think China will stimulate their economy for GDP growth of 7%.

All 3 stocks are in consumer sector and that sector is very healthy and having fastest growth.

Yes. ..price was more than right on BABA today.

All 3 stocks should be held long term.

Good luck to you also.

Saleem

Stocks100 said...

Hi Tom,

I have 4 Chinese stocks in my portfolio bidu,baba, bita, jks.

BIDU has the highest weighting in my portfolio.

Saleem