Traders Corner   7 comments

Should the market decide to drop substantially today, I have bolded all of the significant levels down to the 200 day moving average. Personally, I think a market crash today over the U.S. government shutdown would be a huge overreaction. However, I will be playing it cautiously. I would also expect a lot of volatility as the markets hang on every rumor from Washington.

The S&P 500 levels to watch today:

UPSIDE: 1693-1695 (3 data points), 1697-1698 (2 data points and July’s high), 1700-1701 (2 data points), 1703-1705 (3 data points), 1707-1711 (3 data points and August’s high), 1720 (September 19th’s low), 1725 (September 20th’s high), 1729 (2 data points and the all-time high), and 1735 (top of the Bollinger Bands).
LAST CLOSE: 1691 (2 data points).
DOWNSIDE: 1687-1689 (4 data points and May’s high), 1684 (September 10th’s high and the 20 day moving average), 1681-1682 (2 data points), 1680 (50 day moving average), 1678 (September 11th’s low), 1675 (September 10th’s low), 1672 (September 9th’s high), 1664 (September 6th’s high), 1659 (September 5th’s high), 1651-1656 (4 data points and June’s high), 1640 (September 6th’s low), 1637 (September 4th’s low), 1634 (bottom of the Bollinger Bands), 1633 (September 3rd’s low), 1627 (August’s low), 1604 (July’s low), 1597 (April’s high), and 1589 (200 day moving average).

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Posted September 30, 2013 by edmcgon in Daytrading, Investing, Market Analysis

7 responses to “Traders Corner

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  1. Any opinions on Matthews Emerging Asia Investor (MEASX)? I hold a few other Matthews funds as long-term holdings. The big downer is the 2.16% expense ratio and it’s newness, but I like the idea of tapping into frontier Asia for long term growth. Does anyone have any alternatives they like in this area?

    • John,
      Matthews has a solid reputation, which is why their expense ratio is so high. I can’t recommend this specific fund, but it is probably a safer play than most Asian funds.

    • I’ve had $ in the Mathews China fund. Did well in it but as Ed says, fees and expenses are very high. Nonetheless, China might actually be a market where expertise and local knowledge are worth the premium?

  2. Ed

    Thoughts on security software stocks and in particular FTNT and CHKP?

    • Ojunker,
      Both companies have pretty clean financials. FTNT looks a little pricey, even for expected growth. CHKP looks fairly priced unless you expect big growth. CHKP could be the play here. CHKP also has much better margins (45.8% vs. 10.5%).

      I can’t say I have any experience with either company’s products, so keep that in mind. I’m only looking at their financials.

      As for security software stocks in general, I wouldn’t say they will grow more than software in general, but they should see some good growth. Symantec (SYMC) is top dog in this industry, although they look fairly priced at the moment. However, SYMC also pays a decent dividend (2.4%). They just started paying it this year, and have only paid 2 quarters. If they pay 4 quarters, their dividend could yield 4.8%. With a payout ratio of 14%, that is a pretty excellent opportunity!

  3. Anybody buying before market close? Who thinks a deal likely to be signed before midnight?

    • Ignore the U.S. government Lynn. They will hem and haw for a week or two, and then one side will blink. If you see a cheap stock, buy it.

      See my last post. I’m buying. 😉

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