Can this market rally from here......????

The big question on wall street is "can we rally from here".....????

Let us examine the technical reading in all major indices before we can come to any conclusion...

Nasdaq is down 5.89%

S&P 500 is down 4.43%

Dow is down 3.89%

RSI is as follows :

Dow 44.22...

S&P 500 42.06..

Nasdaq 38.72

Nasdaq is the-most oversold...RSI hitting strong buy @ 38.72.....last correction we did hit 30 in RSI.....

CAN we rally in the week Option is expiring ??

CAN we rally when retail investor/trader is most scared ????

As sentiment is the-most reliable "contrary indicator"......chance of a rally is extremely high...

HFT generally go in buying mode when retail traders have given up or lost hope....

Another "technical bright spot" is that we did not take out Thursday's low in any indices.....

Also Dow is above 50 DMA...only index showing relative strength......

All these bright spots or my contrary indicator theory is going against technicians who see LOWER number in all indices.....

It is NOT important as to who is right..BUT to buy stocks @ cheaper levels.....

You make money in stock market by buying stocks lower & selling higher.....this MAY work out even though markets are trending lower or are doing nothing.....

That is the reason..i book profit immediately or cut losses quickly...as profits disappear & losses mounts in this unpredictable TAPE....

SO..look @ any weakness as buying opportunity & book gains immediately.....

TAPE has been tough...stocks are in a very narrow range...so buying @ low end & selling @ high end is highly recommended...even 50 cents per share gain can add up...IF you are lucky enough to do many times......

The way i see it......index are stuck in a narrow trading range due to weaker data worldwide..but HFT take full advantage of it by playing the narrow range of this market......

We MAY be looking @ daily UP & DOWN next day market for a while......so position accordingly......

Trade stocks whose pattern are known to you...do NOT go with CNBC fad of the day....because you MAY be buying @ high end of the range.....

YES..TAPE has been discouraging..BUT there is a way to trade IF you are QUICK in execution....

Market character CHANGES all the time..so it is important to adapt QUICKLY .....

When market is range bound...then it is important to trade & book profit......

Good luck with your strategy & in your understanding of current TAPE.

BLOG does NOT give buy or sell.

Saleem