Markets are deeply oversold.....
RSI is @ 38.95 in S&P 500..lowest in four months..takes us lower than 3rd week of March????
S&P 500 closed @ 881.03 while 200DMA is 884.99.....
Volume was below average.....
Nasdaq closed @ 1746.17 below 50DMA of 1773.47.....RSI @ 40.69..again lowest in 4 months..
Dow is below 50 & 200 DMA...RSI @ 38.12..lowest in 4 months....
It is a "mystery" why we went so low in all indices & breaching important technical levels....I cannot explain this @ all...so I go back to looking @ RSI...which IS saying we have reached "severe oversold conditions"
So..if nothing else..we should get a strong technical bounce......
AH Futures are all minor GREEN.....
VIX closed @ 30.85
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Saleem,
I can't explain the action either,,except maybe someone is trying to push the down button and wreck whatever confidence has grown in the market so far. Still nothing from the SEC on short selling? They want to see if the market will hold without intervention?
Best Regards
Hi Standards,
This "severe" downtrend is very discouraging after a massive decline till March 09.....
There is no real issue @ hand....this time......
Financials,Credit,Loans are all moving in the right direction..so many countries are pushing stimulus..yet market is being trashed????
Saleem
Hi Saleem,
Volume has been low. No real panic or stampede to the exit. Buyers may have stepped to the sidelines waiting for a better entry point. This is summer too, always sluggish and dull. I would hope for a little more firming in equities. We'll just have to wait it out.
Best Regards
HELLO to all
It is really hot in DC. FGas in $2.45 gallon. RealEstae prices may be near a bottm but not Yet!
The market has not made up it mind yet, as to how much the jobs numbers are hurting tyhe economy--once a good piece of news hits we will see a market jump up like crazy. My 2 cents.
I sold covers GE calls and then closwed them yesterday whne GE stock price declined again-wow made me lunch money, but the RSI was telling me GE is way over sold!
It is time to hunker down and wait for a market opportunity to make some money.
God Bless us all and enjoy life as much as possible--cheers to all
thanks Saleem for listening to me rant.
Hi Madmax,
Your post IS always appreciated.
Covered call open & closing transaction made you some money..great !!!
Close should be interesting.....
RSI is my biggest guide to decision making after FA.....
Saleem
Hi Madmax,
Nice going on those calls, you still have time to do it again before expiration!
Best Regards
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