I guess the title says it on. The S&P got rejected right at the 50 day MA. But no need to panic, at least not yet. As I had been saying since the end of last week, the markets were clearly overbought and a pullback was certainly overdue. Though we are not overbought according to the Mcclellan Oscillator anymore, we are still at pretty high levels and need another day like today to reach neutral levels. GS behaved surprisingly well on a 100 point down day, down only 0.1%. This combined with the strength the market showed in face of negative news last week has me leaning bullish. Till when will I continue leaning bullish? Till 1080 holds.
I didn't trade much today as I got pretty much no time at all to follow the markets today. One of those days at work! I knew I wouldn't be able to see the markets till noon, so I placed a sell limit order for AMR at 8.99. It wasn't behaving well in the pre-market and I wasn't comfortable being so much long overall. I took a ~1% loss on this one. When I got a chance to see the markets again, it was 8.84. A quick look at the charts made me think the bottom was going to be around 8.76, so I placed a buy limit at that point and left. As I see now, the bottom was indeed 8.76 and my order did get filled. So, at the end of the day, I am still long AMR, CSE, NEP.
Talking about NEP, they came out with horrible news afterhours. Basically, they have been forced to make changes to their last few years financial statements by the SEC. I have held this stock for over two years in my buy and hold account as I have had complete faith in the stock, even when it dropped to 1.50s. Basically, I feel kinda let down and maybe even betrayed by the management. I don't know if I will ever buy a stock for long term ever again. But more on that another day. It has already fallen a lot after hours, as expected with news like that. Tomorrow is certainly going to be interesting, to say the least. But I am surprised how calm I am at prospect of facing a big loss. That's the thing about trading.....It teaches you a lot about yourself as a person.
That's it from me for now. Wish me luck for tomorrow!