Tuesday, May 1, 2018

Indices closed mixed....

Indices closed mixed.

S&P 500 @ 2654.80, high 2655.27, low 2625.41

RSI @ 47.99

CMF @ -0.016

Internals were :

UP volume led by .82 to 1 in NYSE & 1.64 to 1 in Nasdaq

Advancing stocks led by 1.10 to 1 in NYSE & 1.43 to 1 in Nasdaq

Net new 52 wk lows were leading by 176 in NYSE & 54 in Nasdaq

VIX Down 2.76% @ 15.49

Oil @ $67.25

Gold @ $1306.80

AH news...SNAP Down 14.51%, AAPL UP 3.63%
                   NSP UP 13.83%, CRAY UP 14.58%

SNAP earnings report was an in line EPS and a miss on revenue by $12.89 million, conference call was cautious and hopeful for 2nd half.

In my portfolio :

Sold SNAP @ $11.96

Added 50% SQ @ $48.63

AH Futures Mixed

AH Asian Markets Mixed

AH Oil UP

AH Gold Down

About market, TAPE was hesitant but closed @ high of the day. AAPL earning is a beat with major buyback, i am not sure IF this news will be able to help sentiment for equities. Small caps are faring much better in earnings arena. Fed will release its policy statement @ 2 PM.

BLOG does NOT give buy or sell.

Saleem

7 comments:

stocktrader_1996 said...

Hi Saleem,

The next three days will really indicate to me whether I need this small cap short position. With the Fed today that I expect to be hawkish, and a jobs number I expect to be inflationary in wages, if those things don't occur as expected or the small caps don't drop in response, I'll know I'm fine without it.

Stocktrader

Stocks100 said...


Hi Stocktrader,

Small cap are doing pretty good while big brothers flounder.....i do not see it changing...

Saleem

stocktrader_1996 said...

Hi Saleem,

Small caps have been performing well as they had less of the economic growth and tax cuts already priced in, as well as being more immune to trade and tariff problems. My thesis is that a hawkish Fed will put the brakes on the outperformance of this group, but we should know either way how that thesis is working out by the end of the day Friday.

Stocktrader

stocktrader_1996 said...

Hi Saleem,

I will say, this market really feels like it wants to go higher though.

Stocktrader

Stocks100 said...


Hi Stocktrader,

I concur with " northbound " projection.....

Fasten your seat belt...

Saleem

stocktrader_1996 said...

Hi Saleem,

Sold TZA @ 10.96

The Fed was more dovish than I was expecting, so no need to keep the TZA hedge, especially as small caps have performed so well.

Stocktrader

stocktrader_1996 said...

Hi Saleem,

Used those proceeds to buy BAC @ 29.86

With the Fed thoughtfully and gradually raising rates, I think the banks can perform well.

Stocktrader