US stock market ready for slumping week ......

 US stock market is in real trouble......

Key averages are below 50 DMA

Stimulus is in trouble

Job data to be hopeless

Earnings are being sold off

DOW jones is well below 50 DMA

S&P 500 is below 50 DMA

Nasdaq only 90 points above 50 DMA

SOX only 79 points above 50 DMA

Russell 2000 only 9 points above 50 DMA

GME represents an epic battle between High Frequency Traders and determined daytraders, no one stock can crater a healthy market.

BUT when Robinhood  " restricts 50 stocks with only 1 shares allowed to buy " you are all set for trouble in stock market.....

50 stocks can and will kill any market....

IF free trading is allowed in 50 Stocks then a chance of  " V " shaped recovery is there.

I believe that we slump @ open with Nasdaq, SOX & IWM well below 50 DMA......

IF Robinhood wakes up and allow free trading then only we stabilize...

GME defines a strategy which HFT traders do not like as it is being done against their " Dumb Supercomputers " by human daytraders....and humans are winning against HFT hands down....a reality which upsets " milking small investors "

SO it is an epic battle which has started ....but this time casualty will be so called HFT / smart money / old money...who have friends in regulatory framework.

I am in BB which has negligible short interest about 5%... but is in restricted list and margin in BB has been reduced even by my broker TD Webbroker in Canada.....

Strange times indeed....

SO what to do now in this " crazy trading "

Monitor your stocks closely and react to match your own comfort level

Pay attention to regulatory news as it is bound to change during trading hours....

As far as RSI is concerned in DOW it is @ 38.95...it can go to high 20's....but it could come within first 3 hours of Monday's trading...

IF we have sudden sharp drop in all averages, chance of a " V turn  is very high " with some regulatory support statement.

IF you must..then liquidate all your position in pre market or @ open to watch this epic battle from outside.....

Hedge Funds are not taking hits lightly and may overreact in selling their winners to a bargain level.

Market focus has changed and we all must react accordingly, its good to be a spectator than be part of mega selling of good stocks.

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem

Indices closed down 1.93% to 2.03%......

 Indices closed down in a week which resulted in epic battle of determined daytraders vs traditional market makers, results are still being felt all over, does not look good for market or market stability.

S&P 500 @ 3714.24, low 3694.12, high 3778.05

RSI @ 43.27

CNF @ 0.057

Internals for Nasdaq only :

Declining stocks led by 2.39 to 1

Net new 52 wk highs were leading by 65

VIX UP 9.53% @ 33.09

Oil @ $52.20

Gold @ $1850.30

Canadian $ @ .7219

Stocks which closed green included CNX

PAAS SWKS AG RIOT MSTR DASH

SPWR GAN QRVO CRWD DDOG

NVAX MRNA QCOM MCD....

Here is my portfolio weighting :

SQ          27.95%

SU          19.47%

CNX       16.39%

MGM     16.25%

FSLR     15.39%

BB          4.55%

Next post by 6 PM on Sunday

BLOG does NOT give buy or sell.

Saleem

Indices closed UP .50% to .99%....NICE!!!!

 Indices closed UP.

S&P 500 @ 3787.38, high 3830.50, low 3755.75

RSI @ 52.50

CMF @ 0.070

Internals were :

UP volume led by 1.40 to 1 in NYSE & 2.46 to 1 in Nasdaq

Advancing stocks led by 2.22 to 1 in NYSE & 1.26 to 1 in Nasdaq

Net new 52 wk highs were leading by 85 in NYSE & 98 in Nasdaq

VIX Down 18.81% @ 30.21

Oil @ $52.34

Gold @ $1837.90

Canadian $ @ .7184

In my portfolio...added 90% BB @ $17.00

Portfolio BB CNX FSLR MGM SQ SU

Stocks which were UP 4% or more included MGM SQ

PAAS AG AAL MSTR CIIC MU PANW LYFT TWTR

DADA PENN AUY PLAN CGC SAL CRWD UBER

ENPH SEDG EAT LSCC ASML TWLO SNAP LNG...

AH Futures Down

AH Asian Markets UP

AH Oil & Gold UP

About market, TAPE celebrated victory by old guard of Wall Street by putting restriction thus punishing new ideas to make money so old money can get out of losing trade, not a fair way to close books. Indices closed UP with positive internals. Tomorrow some normalcy / balance is being restored with only 1 hand cuffed vs both today, will see how the market behaves.

BLOG does NOT give buy or sell.

Saleem

Indices closed down 2.05% to 2.61%.....

 Indices closed down.

S&P 500 @ 3750.77, low 3732.48, high 3836.83

RSI @ 47.28

CMF @ 0.057

Internals were :

Down volume led by 1.28 to 1 in NYSE & .77 to 1 in Nasdaq

Declining stocks led by 4.91 to 1 in NYSE & 5.39 to 1 in Nasdaq

Net new 52 wk highs were leading by 122 in NYSE & 127 in Nasdaq

VIX UP 61.64% @ 37.21

Oil @ $52.85

Gold @ $1844.90

Canadian $ @ .7212

In my portfolio :

Sold BB @ $22.00

Bought APA @ $15.50

Sold APA @ $14.70 in AH

Bought BB @ $23.00 AH, Added 120% BB @ $20.00 in closing seconds of my AH around 7 PM in Canada ( AH trade stops @ 7 PM in Canada and pre market starts @ 8 AM)

Portfolio BB CNX FSLR MGM SQ SU

Stocks which closed green included BB

AAL CCL FUBO AI NKLA JKS RXT

CLDR GOOS ZI CIEN CGC TOL KBH

NTAP NVAX LITE MRNA IQ WB YY

YELP ORCL X M ACB....

AH Futures UP

AH Asian Markets Down

AH Oil & Gold Down

About market, TAPE was under serious selling pressure despite Fed policy statement & Q & A which was extremely reassuring. Short hedge funds were facing huge margin calls thus across the board selling to raise funds to cover, how tables have turned. Many forces are trying to stop this game in reverse as they do not like being pushed into selling / covering or facing huge margin call during the day.

BLOG does NOT give buy or sell.

Saleem

Indices closed down .07% to .15%....

 Indices closed down.

S&P 500 @ 3849.62, high 3870.90, low 3847.78

RSI @ 65.28

CMF @ 0.126

Internals were :

Nasdaq stat only

Declining stocks led by 1.64 to 1

Net new 52 wk highs were leading by 260

VIX Down .73% @ 23.02

Oil @ $52.80

Gold @ $1850.70

Canadian $ @ .7285

Portfolio BB CNX FSLR MGM SQ SU

Stocks which closed green included BB

AG YAYO FUBO DASH RIDE CIIC

NKLA IBM SPWR DKNG JKS RXT

CLDR TWTR HEXO ZI CGC TOL

CRON APHA MRNA HUYA MOMO

BYND BZUN FB UAL BABA JWN

TWTR OSTK M TLRY ACB.....

AH Futures Mixed

AH Asian Markets Mixed

AH Oil UP

AH Gold Down.

About market, TAPE was down in a day when side show has become all shorted stocks, most of them were sharply higher again thanks to gutsy traders. After hours earnings were mostly better than expected but there was a yawn and they went down except MSFT which went sharply higher on key metrics outperformance.

BLOG does NOT give buy or sell.

Saleem

Indices closed mixed.....

 Indices closed mixed.

S&P 500 @ 3855.65, high 3859.23, low 3797.16

RSI @ 66.65

CMF @ 0.191

Internals were :

UP volume led by 1.07 to 1 in NYSE & 1.47 to 1 in Nasdaq

Declining stocks led by 1.33 to 1 in NYSE & 1.13 to 1 in Nasdaq

Net new 52 wk highs were leading by 443 in NYSE & 497 in Nasdaq

VIX UP 5.84% @ 23.19

Oil @ $52.77

Gold @ $1855.20

Canadian $ @ .7248

In my portfolio :

Bought BB in pre market @ $19.50

Added 150% SQ @ $319.64

Sold AAL @ $15.26

Portfolio BB CNX FSLR MGM SQ SU

Stocks which closed UP included BB CNX

FUBO CLF AI NKLA GAN GOOS ZM

DDOG PDD JD NVAX MRNA HUYA

MOMO BYND BZUN YY SWKS M....

AH Futures Down

AH Asian Markets Mixed

AH Oil & Gold UP

About market, TAPE closed mixed with another new all time closing highs in Nasdaq & S&P 500. Internals were mixed. Many stocks have seen gigantic moves since COVID-19 lockdown or stay home scenario, how it will end nobody knows BUT markets do reflect different approach in different situation, good or bad its always left to coroners to dissect and give full report.

BLOG does NOT give buy or sell.

Saleem

US stock market in 2021.....

 New year has started, as with any new year there are many predictions for US stock market in 2021.

There is a general unease among many seasoned analysts as to where we go from here....

Most expect a modest gain in 2021...

Lowest prediction is S&P 500 is we may close in 3600 area a decline of 241 points or negative 6.2%  from Friday's close.

Optimist are saying we close around 4000 a gain of 158  points or positive 4.11%

Most wall street are stuck with a gain from 8% to 12%...

Most optimistic number I have seen is a gain of 20% for 2021 from famed outperformer Cathie Woods of Ark Investments whose ETF gained an stunning 140%+++ in 2020....

I know most of the predictions for S&P 500 is not even close to Nasdaq 40%++ in 2020

For the record S&P 500 was an underperformer in 2020 also, it started 2020 @ 3230.78 and ended 2020 @ 3732.04...a gain of 501.28 points or 15.62%......

So an average of 8% gain in S&P 500 in 2021 will be almost half of 2020.

Nasdaq stunning gain in 2020 by cloud / stay home stocks / solar / vaccine related can be described as rare phenomenon.

Nasdaq / technology has outperformed for many years in aggregate but has slumped hard in post Y2K era also.....

I expect Technology to beat other averages this year also.....

Most technicians / analysts are predicting small caps to outperform in 2021...

Financials / Industrials / Commodities / Energy are heavily favored for 2021......

Obviously most traders are not used to focus in highlighted area for 2021......

It will be wise to pay attention to where money Managers are piling their funds to outperform...

2020  like 1999 was an aberration not a real investing scenario where 400% gains came for many traders / investors....

It will be a huge mistake to keep looking @ 2020 for any direction to where money can be made....

Please look @ potential gains in new sectors.....

There is a fear that 2020 winners can slump badly in 2021.....

Good luck with your own thesis and comfort level.

BLOG does NOT give buy or sell.

Saleem