S&P 500 closed @ the highest level of this rally on option expiry......generally indices do not make highs on option expiry....
The reason indices behaved so strongly or did not pull back was because too many investors/traders are afraid of 1130 area & have sold out......
Investor psychology is critical in determining direction of the market...when they are afraid,it is time to stay invested.....
Currently 30% of advisers are looking for correction...an extremely high number when indices are near recent highs..which only means that support for S&P 500 is very strong due to skepticism about this rally...i do not see S&P 500 going below 1100 in any pullback.....
YES..pullbacks are to be expected due to news event BUT we should march upwards eventually towards 1200 area.....
Many pundits are afraid of this rally and are calling for a correction thus shorting this market...which in turn should fuel another strong rally.....so when pundits are afraid & as long as we have Guy Adami expecting a pullback to below 900 we are/have been fine....
I love when Guy Adami has been "bearish" since March 09 while we keep rallying higher & staying well above any of his much talked about "below 850 in S&P"......
Currently RSI is @ 63.43....in healthy market this number do not go below 50...there is a very good chance that we MAY take out 80 RSI reached in the week of April 12,2010..thus lot of room on the upside.....
As we all know that 70% of trading volume is generated by High Frequency Trading....IF they are confident about future trend of economy...they CAN take this market higher in a hurry...
CMF is getting more positive currently @ +.176...highest since week of Aug 16......
IF we get near 1200 then we will get another "outright buy signal" as this may cause a "bullish crossover".....when 50 DMA moves higher than 200 DMA..then it is an indicator of long term buy signal.....
While there is lot of FEAR about economy...market is noticing improvement in Jobless claims & industrial production worldwide.....
Fundamental of US & worldwide economy is far from anaemic.....it has a PULSE.....which should get better every month.....
I expect Q4 which starts in October to signal a major improvement in worldwide economy which should continue until March of 2011......
When market do not go down "pay attention".....I do & change my strategy in nano-second.....
My portfolio is AAPL,LVS,RVBD,SOLF......
Good luck with your OWN comfort level as markets do change direction without notice.IF you are in market then stay diversified......
BLOG does NOT give buy or sell.
Saleem
5 comments:
SALEEM
You look quite good--for a 63 yr old--fantastic picture-any grandkids?
As for market wow spot on IMHO.
APPLE is roaring and we are far form over bought!! I am see new highs ever day APPLE, MCD DD & KO, MO and KMP
I am dervisfied--some--I got a Mutual funds bond funds and my stocks. I keep thinking that the stock funds are very good--so far my picks are better than the funds.
Hmm, Maybe U need to take a hint
I just do not have time to pick indivudual stocks one need 5-10 good picks and that takes a lot of research
God bless all--best regards to all
Hi C,
I am 65 years old..picture was taken July 25th ,2010....you can see more in my facebook.
We do not have any kid....but i have lot of nephews & nieces in US.
Stock picking takes lot of time ,knowledge & knack for picking winners...you certainly have done that with AAPL & MCD.
Saleem
YOU look great for a 65 yr old
Keep up with what ever you are doing it works
As for stocks Yes time is important and I seem to have too little of it now that I am back to work again
Please take good care and keep communication channels open
thanks again
Hi C,
Born May 1945 makes me exactly 65 years & 4 months young....
I am happy person by nature..do not dwell on things @ all.....
Take everything in stride....
I do put lot of effort in everything i do..nothing is half hearted.....
Helping/guiding/sharing gives me immense happiness.....
That is what keeps me going !!!!
Saleem
Hey...Great information thanks for sharing such a valuable information
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