Indices are rangebound UP or DOWN 7% ......???

Since July markets broke down below 50 DMA & has now reclaimed 50 DMA with a "surprising show of strength on Friday"

Friday TAPE surprised even the most bullish trader......& as usual shorts are "hoping against hope"...poor desperate Adami never gets a break...he IS never impressed with market resiliency..has he ever studied market history or learned the tough lesson that "never fight the TAPE"

So everyone is trying to figure out...where are we headed next......???

Based on TAPE of Friday..we should easily take out the 09 HIGHS in S&P 500 which is @ 1101.36...we should jump to 1120 in a hurry...BUT will it close there or go even HIGHER???

I personally believe that we ARE in a RANGEBOUND markets which quickly goes UP 7% & quickly comes DOWN 7%.....

SO..IF you BLINK you MAY miss the UP move & MAY get caught in downdraft from new HIGHS...so you have to be QUICK to be in the market near RSI below 50 & lock profit near 70 RSI...that is what I have been positioned for.......

RSI has been a very good guide for me as NOISE in the market takes over either in FEAR or GREED......so IF you follow & understand 4 month RSI then you can be CALM & positioned based on RSI.....

Q4 rally which MAY start in December which CAN carry us into HIGHER grounds.......

SO...what I am saying as a summary :

-Lock profit when you have...

-Have 50% exposure in the market all the time

-Keep moving to sectors showing strength

-Trade stocks which you KNOW very well in terms of FA & TA plus recent TAPE....

-Do NOT follow the herds or pundits who are either OVERCONFIDENT or BEARISH.....

Markets will remain DIFFICULT with quick UPSWING & DOWNDRAFT.......

Here is my $ allocation as of Friday ( 50% exposure) :

GNK 31.24% Dry bulk Shipping
AUY 18.44% Gold Producer
POT 15.72% AG Potash
MRVL 15.03% Technology/PC Smartphone
SLW 11.74% Silver reseller
LVS 7.83% Casino operator

As you can see that my sector focus IS changing mostly commodity based....

Easy money has been made so make sure you are DIVERSIFIED in many sectors which are showing strength.Also ensure your comfort level with YOYO market.

BLOG does NOT give buy or sell.

Saleem