Market TAPE..is it as bad as it FEELS???

Market TAPE HAS been very frustrating for many..who has sought resolution to many of the economic issues.....

Resolution of most issues are in the works..but due to its complexity..it is NOT showing the progress which most of us were hoping for.....

If you are FRUSTRATED with market tape.....you are NOT alone....think of all the successful investors who are committing more & more funds into this market.....some are EARLY like Warren Buffett...but in the end based on your time horizon success WILL come......

Market are trying to DISCOUNT all the economic challenges..so have gone nowhere since Nov 20th LOW...Dow was @ 7552.29......& now we are @ 8,000.86.....a move of +448.57 or +5.94% in last 72 days.....

As most investors like Warren Buffett did NOT buy stocks on Nov 20th...so Most investors are deep in ongoing loss.....which adds to frustration and loss of confidence in ability to make money in this market......

Every time IBD declares " markets in CONFIRMED Rally mode" we get immediate selling to near LOWS......

BUT......

There ARE hopeful signs in market tape.......

New 52 week highs & Lows are NOT as extreme as going into last 18 months of horrendous decline.....

Advance decline ratio also is NOT extreme.....

I personally believe that the resolution of this BASING process will be to the UP side..when most traders are totally frustrated & MAY have given UP.....

As the saying goes..never SHORT a DULL market......

Even in this frustrating tape....some sectors have been working..like Gold,Biotechs,Education......but if you are NOT focused in these sectors then you are NOT CHANGING with TAPE..which IS critical to RECOUPING your lost $$$$.....

So the message IS.....

There IS HOPE for this market.....

But CHANGE your stock MIX to reflect stronger sectors.....being stuck with previous themes or being STUBBORN is not going to help in recovery of equities....being diversified in WEAK sectors is NO diversification @ all.....

So.....

Please REDO your OWN strategy by carefully evaluating where the strength LIES....a simple formulae is which sectors/stocks ARE above 50 or 200 DMA or hitting new 52 week HIGHS....????

BLOG does NOT give buy or sell.

Saleem