Market Outlook
The market has plenty to worry about – rising interest rates, geo-political volatility, oil prices, power outages and the upcoming elections. Despite all this, over the last 6-12 months, the market has held up well. With S&P 500 and Dow both within 5% of their 52-week highs amidst a sputtering economy and a housing sector collapse, the markets have acted as best as one could have asked for. I am concerned that the recent rally though, is not going to last.
I believe that holding at least 25% and maybe even 50% of your portfolio in cash would be a prudent strategy, at least for the next 4-6 weeks. I believe November will bring about a decent rally once the elections and hurricane season are behind us.
Till then, if you hold equities, I recommend a little more defense. Boeing seems to be a good bet for now. I will write more about Boeing shortly.
– Faisal Laljee
my near term trading range
goal for nasdaq is 2130-2175.
i sell near high end and buy
near low end. one near term
driver to the high end would
further declines in lofty oil
prices.
the nasdaq meet my goal of
2175 and advanced to the 2180s.
the nasdaq has had a 66 point
4.5 day rally since the
Thursday lows
around 2121 and i suspect
a tip anytime. thursday
3 potential downside triggers:
1. 8:30 inflation numbs
2. 12:30 Bernake speach
3. UN-IRAN standoff.
Friday downside trigger
8:30am Jobs report.
NASDAQ bounce
2121 > 2193
72 points in 6 days
is probably over and due
for some dark dirty
downside action for atleast
2 back to back down
days … according to
stoxx spirit. i assume
starting Friday.
After testing $92 low end
for 25 trading days ISRG
is attempting serious
starter bounce. but how
is it gonna work if indexes
cave for next 2+ days?