WHY....the steepest plunge in RSI ?????

S&P 500 RSI was sitting around 69.00 after wk 1 of Jan 2010.....Now on Friday's close we are @ 33.36...a stunning crash in 14 day RSI of 51.65%....this is way more steep than March low in terms of speed & % drop????

Are we looking @ financial meltdown which nobody is aware of or even worse based on RSI indicator????

Most of the reasons given for this meltdown has NOT come to pass YET......

Stocks are becoming a SIX letter word and majority are heading for exit?????

This sudden change in market psychology does NOT make sense.......

STIMULUS are coming out...because economy CAN stand on its OWN two feet.......IS that such a bad thing????

China is increasing reserves for banks because they are trying to control RUNAWAY GDP growth & INFLATION......is that such a bad thing????

Obama is ready to cooperate with Republicans for JOB creations & passage of Healthcare bill....is that such a bad thing????

IF economy is IMPROVING based on FACTS of 5.7% GDP GROWTH in ailing US & 10.7% in supercharged China...then WHY stocks are such a bad place to be?????

Nasdaq is Down <7.99%>........which IS STEEPER than <7.59%> in October selling.....Nasdaq is back to Sep 8th level..a retrace of 5 months back?????

All of the above reflects EXTREME pessimism which is NOT backed by economic picture worldwide........

Leading Economic Indicator in US has been UP 9 months in a row......

Job is expected to show GROWTH of 50,000 on Friday.......

Based on the above TWO facts...this selling is NOTHING but short attack by big hedge funds & institutions to make money on the downside by scaring RETAIL to sell in PANIC......

RSI,SENTIMENTS & FACTS are telling me that "turnaround will be SHARP & SUDDEN"

We should RUNUP to 1120 area in S&P 500...then another bout of short attack.......

Markets are being FORCED to stay within a RANGE NOW..1070 to 1120......

Here is my $ allocation as of Friday's close :

APWR 17.09%
IAG... 15.33%
SLW.. 13.09%
TSL... 13.04%
PALM. 12.75%
SOLF.. 11.42%
AUY.... 9.58%
TC .....7.70%

As you can see...I am heavily weighted in Solar & Metals...Please stay diversified in this "bear attack"...

BLOG does NOT give buy or sell.

Saleem

Buy rated stocks.....

Following stocks are flashing buy signal.Please do your OWN due diligence by checking FA/TA/TAPE.

CLS,NDN,DLTR,RCI,TLAB,DENN,RCII,TG,TLB,
ARBA,INFA,ISSI,LCRD,PMCS,PXLW....

NEXT post by noon on Sunday.

Saleem

Another lower lows of 2010 in Indices.....

Volume picked up in all indices & they closed near lows of the day & lowest close of the year.

Sentiments are becoming overly negative for the markets......

VIX UP 3.75% closing @ 24.62...quite mild jump considering all the negativity....

Some solar fared very well which included STP,SOLF & TSL......

By noon on Saturday..I will list "buy rated stocks"

BLOG does NOT give buy or sell.

Saleem

S&P 500 HIGHER low today so far.....NICE !!!!

Indices are mixed with Dow & S&P 500 in Green & Nasdaq Down.....

1081.40 is the low in S&P 500 which means HIGHER low...a good technical indicator so far....

We had great GDP.....we had very good ER so far,BB is confirmed as Fed Chief,Obama wants to create Jobs.....but manipulators are "gaming this market to squeeze blood".....expecting a strong close today......

Gold Down $6.40

Oil Down 38 cents

Canadian $ Down 12 tick @ 93.75 US for 1 CAD

In my portfolio :

Sold POT

Bought 125% more SOLF @ $7.39

Bought TSL @ $22.19

Portfolio is APWR,AUY,IAG,PALM,SLW,SOLF,TC,TSL....

@ 12.38 following are green :

SOLF,TC,TSL,IAG,CAAS,FUQI,STP,PWRD,NTES,
GOOG,BIDU,MA,V,NDN,PMCS,RVBD,M,ASIA,
AMZN,SNDA,ICE,LULU,WYNN,CMED,VLO,SPWRA,
FSLR,IBN,VAR.

BLOG does NOT give buy or sell.

Saleem

Another negative close in Indices....

Indices were negative @ close today again......

Only saving grace today was....that we closed above lows of the day.....

Volume was lower in Dow & S&P 500 but was higher in Nasdaq......

We need to stay HIGHER than 1078.46 in S&P 500 to make higher low..so a support can be formed.....

RSI in S&P 500 is @ 36.39.... again an area where rallies have come from nowhere......

Extreme PESSIMISM is another CONTRARY indicator...which should bring stability....

AH AMZN ER was a beat & guide UP..... UP $3.17 AH plus was UP $3.28 in reg hr.....

PMCS was a beat also UP 6.70%

ASIA was a beat BUT guidance was lower than consensus Down AH 7.42% plus was down 3.50% in reg hr.....

AH Futures are RED

AH Nikkei & Hang Seng Down

AH Shanghai is UP

AH Gold & Oil UP

BLOG does NOT give buy or sell.

Saleem

ASIA beats in Q4..guides LOWER in Sales & EPS

ASIA beats by 7 cents.....38 cents vs 31 cents consensus...

Beat on Revenue also...$72.3 million vs consensus of $71.6 million

BUT guiding Sales & EPS both lower than consensus.....EPS guiding 19 cents to 20 cents vs 22 cents consensus..Revenue guiding $61 to $63 million vs consensus of $63.79 million.....

Sold ASIA in AH.....

BLOG does NOT give buy or sell.

Saleem

1.49% to 2.39% slide in Indices.....

Jobless claims & weak durable goods report provided another reason to sell equities....

S&P 500 low so far is 1078.46 Down 71.99 points from its absolute high of 1150.45.... based on the highest point & low so far..we are down 6.26%......

Gold Down $7.40 cents

Oil Down 31 cents

Canadian $ UP 5 tick

In my portfolio :

Bought SOLF @ $7.43

Portfolio is APWR,ASIA,AUY,IAG,PALM,POT,SLW,SOLF,TC,FUQI call worthless....

POT ER was better than consensus BUT its guidance was WAY LOWER than consensus..down 6.12%...looks like bottom is IN @ $101.00..had reduced my exposure by 53% 2 days earlier.....

ASIA ER on Friday.....

Most stocks are down......

BLOG does NOT give buy or sell.

Saleem