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US tank!

As of now, Dow has went down 2% and NASDAQ 2.77%! This is what happen when the stock juz go one direction without correction.

If memory did not fail me, I think 20dma and 20wma is broken, it’s good shorting opportunity using trendlines.

Time to look for shorting opportunities! Market might be very violent. Better to keep a tight stop loss. Look for downtrending counter with lower high. Preferably with MACD line before 0.

Categories: daily, djia, market, stock, us Tags: , ,

No sell in may and go away?

NEW YORK (MarketWatch) — U.S. stocks surged Monday, with retailers rallying after a report showed consumer spending at a record level and as investors took heart from the latest merger activity, including UAL Corp.’s $3.15 billion deal with Continental Airlines Inc.

The Dow Jones Industrial Average  (INDU 11,152, +143.44, +1.30%) ended up 143.22 points, or 1.3%, at 11,151.83, its biggest one-day gain since mid-February and nearly recouping Friday’s 159-point slide.

All but one component traded higher, led by shares of Caterpillar, Inc.  (CAT 69.78, -0.16, -0.23%) , which gained 2.7%.

Alcoa Inc.  (AA 13.13, -0.02, -0.15%) was the sole decliner among the blue chips, with shares of the aluminum producer down 2.1%. more

May actually open higher for Dow. One shouldn’t be too surprise given that the stock market is so unpredictable. With the earnings so good this quarter, its hard to emulate next quarter. We shall see if it happens

Categories: djia, indice, market, news, stock Tags: , , , ,

Alcoa Slips!

WSJ:

NEW YORK (Dow Jones)–U.S. stocks opened slightly lower Tuesday as a disappointing first-quarter report from Alcoa and a wider-than-expected trade deficit dampened sentiment, pushing the Dow Jones Industrial Average back below the 11000 level.

The Dow Jones Industrial Average was down 20 points, or 0.2%, at 10986 in early trading. Alcoa was the measure’s worst performer with a drop of 2.8%. The aluminum giant reported a narrower quarterly loss and held out hopes for improvement in the year ahead, striking a positive note as the first major company out of the gate to report first-quarter earnings. But its earnings excluding items merely met analysts’ estimates while revenue came in weaker than expected. UBS cut its investment rating on the stock to neutral from buy following the report.

Intel is the next heavyweight to report, with the world’s largest chip maker slated to post its first-quarter numbers after the close of trade Tuesday. Ahead of the report, Intel edged up 0.2%, making it the Dow’s best performer.

The Nasdaq Composite slipped 0.1%. The Standard & Poor’s 500 index declined 0.2%, with the materials and energy sectors leading its decline.

Tuesday’s small drop in stocks comes after the Dow on Monday closed above 11000, something it hadn’t achieved since the financial system began teetering nearly 19 months ago. By inching past the milestone, the Dow continued what amounts to a stealth rally in a market characterized by below-average trading volume and small daily moves.

The market is now looking to see if the S&P 500 can climb above the key 1200 mark. It closed Monday at 1196.48, its highest close since Sept. 26, 2008. However, the measure appeared unlikely to reach that level Tuesday, as investors were disappointed by Alcoa’s report and data that showed the U.S. trade deficit rose more than expected in February.

The wider U.S. trade deficit came as soaring imports of consumer goods and industrial supplies outweighed the impact of oil imports falling to their lowest level in 11 years. The deficit rose 7.4% to $39.70 billion in February, higher than the $39 billion shortfall Wall Street was expecting.

High chance tomorrow Ausgroup will drop also. What a bad timing!

MarketWatch: Correction could be coming

I’ve mentioned that the divergence was seen on STI since last week and on friday it has followed Hang Seng (breaking out of a symmetrical triangle) to move higher.

During this period, watch out for profit taking session, or at least pocket some for those at resistance turning down and put some at counters at support. Like this, you will be cutting down your risk while still enjoying the potential upside.

Always remember the old maxim: let your profit run, cut your losses short.

Friday was a good run for many stock. Really did not expect the bullishness of the market on Friday. Friday is a very good indicator of what will happen on Monday due to the willingness of trader holding the stock over the weekends. Given my current holding as listed:

  1. Ausgroup (red)
  2. Capmallasia (red)
  3. Tat Hong (green)
  4. StraitsAsia (green)
  5. Seroja (green)
  6. FraserComm (red) – super heartache
  7. Ryobi Kiso (green)

I will be looking at a few forgotten counters to enter at support while divest some while on the up move. Cashout on GoldenAgri on Wednesday due to small holding only.

My friend recommended me to put up a weekly post on “My Mom recommendation” since she’s somehow always able to spot counters poise for big move example GMG (heartache) and Seroja but I was always not willing to enter due to lack of good entry.

I will be looking into the trading framework to reduce portfolio risk. I will take quite some time so keep a lookout for this column.

ANNANDALE, Va. (MarketWatch) — Is it too quiet out there?

After a couple of years of extraordinary volatility on Wall Street, the relative calm of recent weeks might be considered a very welcome development.

But some advisers nevertheless worry that it means the market is overdue for a correction.

The last time the S&P 500 /quotes/comstock/21z!i1:in\x (SPX 1,194, +7.94, +0.67%) dropped by at least 1% in a single trading session was Feb. 23. If today proves to be yet another day without a 1% decline, as indeed looks likely mid-day, it would mean that today is 32nd straight session without this big a drop.

You have to go back to May 2007 to find another occasion in which the S&P 500 index went this many sessions in a row without dropping at least 1% in any given session.

As we know now, of course, May 2007 came just a couple of months prior to the eruption of the sub-prime mortgage mess and the end of the 2002-2007 bull market.

more…

Stocks pull back from recent peaks

NEW YORK (CNNMoney.com) — Stocks slipped Tuesday as investors stepped away from the recent rally that left the Dow industrials just shy of the 11,000 mark.

The Dow Jones industrial average (INDU) lost 28 points, or 0.3%, after ending the previous session at 10,973.55, the highest point since Sept. 26, 2008, when it closed at 11,143.13.

The S&P 500 index (SPX) slipped 3 points, or 0.3% after closing the previous session at its highest point since Sept. 26, 2008, when it topped 1200. The Nasdaq composite (COMP) fell 9 points, or 0.4% after closing at its highest point since Aug. 15, 2008.

Can it be true that my previous post on bond stock divergence is in effect?