Sunday, December 16, 2018

Bounce or breakdown......

This weekend everyone who is involved with stock market is wondering.....are we going to bounce or breakdown......

All indices are heading or making a new closing low since last slump in February...

IS Nasdaq ready for a breakdown ?

SOX is contradicting Nasdaq " potential weakness "

SOX is behaving relatively much better than Nasdaq and may give help to Nasdaq in not rolling over...

SO...IF I were you...I will keep an eye on SOX and see IF it holds better...then Nasdaq may not roll over.....

Russell and S&P 400 have rolled over badly, hoping it is not an indicator of all indices....

What gives me hope for no rollover in Nasdaq, it may be the sentiment on wall street " it is extremely negative " which is a very reliable " contrary indicator "

Fed is all set to raise interest rates this Wednesday....BUT it may announce a "wait & see " approach going forward.....

Market may anticipate " softening in Fed language for 2019 and rally hard "

SO " sentiment and soft Fed " is my reason for a bounce.....

We all know that markets are oversold worldwide, it may bounce hard on any excuse like "softer Fed "

Some stocks have acted well, these are the stocks who are well above key technical indicators like above 50 DMA & 200 DMA.....IF you have any of those stocks , you should hold on for further gains and may be they are future strong stocks.

Good luck with your portfolio that are giving you less stress or else change them for next bounce.

Good luck with your strategy!

BLOG does NOT give buy or sell.

Saleem

7 comments:

stocktrader_1996 said...

Hi Saleem,

Sold SPLK @ 103.23

Bought LITE @ 42.63

Stocktrader

Stocks100 said...


Hi Stocktrader,

Good luck with LITE.

Saleem

stocktrader_1996 said...

Hi Saleem,

Added to SAIL @ 23.17 and 22.65 with small bits of cash each time.

Stocktrader

stocktrader_1996 said...

Hi Saleem,

I sold SPLK because it's just not acting like I feel it should based on the earnings and strength in other major cloud stocks. I still wonder if the street feels the threat from the open source movement.

I picked up LITE because it has a great longer term story based on optical networking and the 3D sensing business. Valuation has been severely depressed recently due to China and Apple concerns, but it probably only creates a pause in uptake and not a true breakdown of the story. Two analysts came out with positive notes today.

I added to SAIL because the valuation is extremely cheap in my opinion, and although that's not the ultimate decider often, I think the stock has a lot to offer still.

Stocktrader

Stocks100 said...


Hi Stocktrader,

This relentless selling has exhausted just about now......

Good luck with more SAIL.....perfect timing!

Saleem

stocktrader_1996 said...

Hi Saleem,

Last week: -1.57% (YTD: +28.06%)
Notable Winners: COUP CSOD VICR
Notable Losers: TRIL SWN ORTX APPN HEAR NIU

It was another pretty tough week as portfolio liquidations across the market took hold. If I had written this out before the market opened, I would have indicated that I thought secular growth stocks started to show some good relative performance later last week, and I thought an accommodative Fed and lack of other growth could really turn into a good current week for them. The action right out the gate here is very surprising and discouraging though, and this selloff puts me very near my "mental stop-out" point for the year that I envisioned some months ago. At the same time, I can't help getting more constructive as things start to play out as I thought they would despite the vicious stock market moves catching me off-guard as I thought we could potentially float into year end without this much pain. For now, I'm staying the course pending developments this week.

Holdings (with today's moves): SAIL VICR PLAN COUP PYPL CSOD HUBS APPN LITE LQDA ORTX TRIL NIU, cash 0.0%

Stocktrader

Stocks100 said...


Hi Stocktrader,

December 24th is last day of trading for us for this year...

You have done extremely well considering what happened since beginning of October...

Great research and great result$$$$$$

Saleem