Stock Market Analysis: September 23, 2013

Pre-Market Analysis: September 23 2013

Futures are basically flat this morning. And it will be interesting to see which way the tides turn after last week’s post-taper sell off. Will we see scary follow through selling?

Or is the buy-the-dip crowd already at it again?

Over in Germany, Merkel remains in the drivers seat. Meanwhile in America, the fiscal policy debate is starting to become a front and centre concern. I think Wall Street expects a last minute deal, replete with partisan bickering until the final hour.

My Trading Plans: September 23, 2013…

I’m taking some vacation in the latter half of the week. So I’m going to use these upcoming days to try and reduce exposure and tie up loose ends. Most of my positions are small enough – and long term in focus – so I’m not too worried about their particular price action.

Namely:

I will try to scale out of SNV, if there’s an opportunity. But it might be wishful thinking. So I’ll be watching KRE for further context on that signal (although it’s not looking good). XLF also gave back all of it’s gains last week.

What are you trading today?

September 23 2013 Trading News:

–Get Ready for the Week with Quint Tarts’ Tape Talk

— Investing Titans Say Stocks Are Fully Valued.

— Joe Weisenthal has some good charts showing upticks in Eurozone PMI in periphery countries and Chinese exports improving.

Ray Dalio’s take on the economy in 45 slides.

Stock Market Day In Review – September 23 2013:

After a shaky open, it was reassuring for bulls to see at least a little price stability into the close. Plus, IWM actually closed green, so is it really that bearish?

Despite the damage in the indices, breadth was a relatively healthy 40%. So maybe we just grind-on… up, then down… 0.5% every other day. If so, I’ll continue to look for conservatively valued stocks and slowly build positions around a favorable cost-basis.

At least looking for good stock ideas is more productive than front-running the Fed.

Speaking of well-valued stocks, I was happy to see TINY and SNV both do their best to close near the session highs. The end of day action in SNV was particularly encouraging because of the ongoing weakness in KRE. It’s nothing to write home about. But I’ve saved some shekels for another day.

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