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DarterBlue

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DarterBlue Newbie

DarterBlue

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After being all over the place, stocks closed broadly higher on higher volume. On the surface, this sounds just great. Markets up, supported by institutional buying. Not so fast. While the day was not negative, it was far from positive. It was a day when the bulls and the bears were locked in an intense battle. When the smoke cleared, they had played more or less to a draw. At the close, the range of gains was from .01% on the MID Cap index to .58% on the NASDAQ 100. As would be expected from this range, given the narrow nature of the best index, losing stocks led by margins of 15-14 on the NYSE and 4-3 on the NYSE (lack of breadth was negative). So here is my take. Shortly after the open, most of the headline indices went down to or very close to the lows of Monday. But they held and the indices rallied off these lows (this was a positive). The rally lasted roughly from around 11 am till around 2 pm. Then the indices started selling off again. In fact, midway though the final hour, the indices all went negative for all of about ten minutes (failure to hold good gains was a negative). However, in the final 25 minutes stocks bounced back from the negative numbers to close modestly higher.  

I had a bad day losing $7,509 or 1.19%. The biggest contributor to my losses was ZM which gave up 7% and accounted for $6,339 of the losses. My put positions on the MID and QQQ surrendered $2,322, while NEM gained 2% or $815. Note that I got out of DHI today at about 10:35. I made about $400 on it today, but lost $197 on this trade. It was an inconsequential loss. I think the stock will do fine when the market gets better. But I expect the market to get significantly worse before they bottom. Hence the sale. ZM was due for a bad day. It was bad from the get go regardless of whether the indices were advancing or contracting. For now, I am not concerned, but I will watch it out of the corner of my eye. So, now I am down to two longs (ZM and NEM), coupled with a big short position.  

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Horsefly
Horsefly

I found video of @DarterBlue  as a small child. 😂     

DarterBlue
DarterBlue

Today’s market action was significant. Based on the criteria I use, a buy (go long) signal was flashed loud and clear. Now to be precise, I am an intermediate term trader. I am looking to make money o

HawgGoneIt
HawgGoneIt

Had this in my news feed today. Just wondering if the local market gurus pay stories like this any attention at all or is it just nonsense? https://markets.businessinsider.com/amp/news/buffett-in

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DarterBlue Newbie

DarterBlue

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2 minutes ago, HSFBfan said:

Westpac, one of Australia's largest banks, hit with record $920 million penalty over money laundering scandal

https://amp.cnn.com/cnn/2020/09/24/investing/westpac-fine-australia-intl-hnk/index.html

I heard that on the radio this morning. Like 23 million cases over a number of years. This is a real problem internationally. 

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DarterBlue Newbie

DarterBlue

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49 minutes ago, HSFBfan said:

Selling their places in NYC and buying houses in NJ and such. My brother just bought a townhouse in NJ 

Its a buying frenzy around here 

You could sell ur house within 24 hours around here 

That works for tristate. But I don't get the rest of the country. It's not like housing markets have been very strong in the Southeast. Never really recovered from the collapse of the housing bubble. 

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HSFBfan Explorer

HSFBfan

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7 minutes ago, DarterBlue said:

That works for tristate. But I don't get the rest of the country. It's not like housing markets have been very strong in the Southeast. Never really recovered from the collapse of the housing bubble. 

People moving like crazy from the tri state into the southeast have been for years 

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DarterBlue Newbie

DarterBlue

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Heading into Friday: The bulls staged a decent stand Thursday. But they only scored a draw. They did not turn the tide definitively. And, they should have. The market is oversold, badly so. In fact the last time we were this oversold, was early in the brief, but very scary bear market last February/March. As I type this, stock futures are mostly down. Only the NASDAQ futures are not. And they are not up, but are approximately breakeven. 

It should be a fascinating day. And it could be  consequential one. Should the market take out, decisively, the lows put in on Monday, then the last stand will have been breached. The next real area of support lies some 5-10% below current levels depending on the index evaluated. 

Of course, I am not a neutral observer. I am short the market. Therefore, you may wish to take my words with a grain of salt. But somehow, I think you know, in your heart of hearts, that this market is in real trouble ...

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DarterBlue Newbie

DarterBlue

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Stocks closed broadly higher, near day highs, but on lower volume. In the process, the NASDAQ closed just below its 50-day moving average while the NASDAQ 100 closed just above that mark. They were the only indices among the headline ones to do so. The others still languished below that mark. The gains ranged from .97% on the NYSE to 2.34% on the NASDAQ 100. While the NASDAQ indices led the way, stocks of all stripes participated. On the day, breadth was decent but not great as advancing stocks led by 2.3-1 on the NYSE and 2.85-1 on the NASDAQ. How do I view the day? Positive with some caveats. First the good aspects: 1. The rally was broad based. 2. Stocks closed very near day highs. 3. Breadth was solid. 4. The NASDAQ indices led the market higher. It is good when the market leaders take charge. Now the negatives: 1. Volume was missing. 2. None of the indices broke their downtrends, most still languish below their 50-day moving averages. My take is that while this was a decent rally attempt, the burden of proof still lies with the bulls.

On the day, I lost $5,518 or .89%. Despite this, I closed the week higher by $8,423 or about 1.4%. On the day my big winner was ZM which gained 6.78% or $31.52. In the process it regained almost all of Thursday’s losses. A negative was the fact that its volume was below its average daily volume. NEM was down 2 cents, for all intent and purposes flat. I fell out of bed because both my PUT positions got torpedoed due to the broad, based market gains. For now, I am still optimistic that these puts are going to work out in spades. The market faces some key technical tests early next week. How they respond to them will largely determine whether my puts were a great buy or a mistake. I will take my direction from the market as one goes broke fighting the tape. The key is to be in sync if you want to make money.

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