Indices are fighting profit taking & Dow making new high for the year.
Internals of the market are strong.
S&P 500 is only 8.54 points away from making new high.
Nasdaq only 40.70 points from making new high.
Many traders are getting "nervous" about shifting sector rotation....this is normal for a strong bull market.
It is important to maintain a "diversified" portfolio.
IF you must overweight, it should be in lagging sector.
However.....there are warning sign flashing about market......
Bears as of tonight are @ record low of 15.7%...
Bulls are near record high of 57% highest was 62%......it is a great CONTRARY indicator.....
With any technical indicator it cannot be taken in isolation.You must cross check with RSI for the market which is NOT flashing sell......
Here is the RSI for indices @ close :
S&P 500 61.36
Nasdaq 61.89
Dow 63.79
IF..i have to set a guideline for my trading..i will be "super cautious" around 70 area in RSI.....
VIX also getting close to 52 wk low which is 14.86..VIX closed @ 16.90.....another cautionary signal as it is also a "contrary indicator"
In my portfolio :
Added 15% RVBD @ $34.29
Portfolio with RSI is BIDU 62.77, JKS 48.18, POT 58.13, SOL 52.14, RVBD 34.71
It is important to monitor this market closely NOW.......
AH Futures Down
AH Asian markets UP
AH Oil Down
AH Gold & Silver Down
BLOG does NOT give buy or sell.
Saleem
2 comments:
S
Good Morning to you
JPM may be a slow climb up --GS was a rocket yesterday.
I see BIDU is green POT red--Yeks!
Very best to all--happy trading to you
My oils and gas are romping! LINE, KMP, EVEP, ETP and ETN
Hi C,
You are becoming a very good stock picker....that is what is critical in market.
POT near unchanged level in pre-market.
Good luck with your portfolio.
Saleem
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