Much fuss has been made of the fact that we reached highs in S&P 500 back in 2nd week of Feb......Today the biggest bear David Rosenberg interpretation of chart is concluding another bearish signal...for the record David never saw any bullish chart since March 09 low.....
IF we care to read the chart accurately, then we have gone UP in a straight line in S&P 500 from 1173.64 back in Nov 2010 to 1344.07 by 2nd week of Feb 2011..a move of 170.43 points or 14.52% in a straight line in a matter 13 weeks.......
Then came Egypt, Bahrain,Yemen,Libya & triple tragedy in Japan.......so market is trying to digest all the implication which MAY impede economic growth worldwide.......so we went sideways for 9 weeks ?
As of today's close, thanks to another political drama in US.....S&P 500 closed @ 1328.17 which is only 15.90 points away from Feb high.......I have NOT seen any market this RESILIENT ever......
I have every indicator which is telling me that we should be taking out Feb highs & go much HIGHER.
Here is the RSI read as of tonight :
Nasdaq 56.67
S&P 500 56.80
Dow 60.44
It IS important to follow chartists / technicians who have predicted the direction of this market since March 09 @ 666 & tonight we are @ 1328 which is 662 points higher or gain of 99.39%.......
I believe, that once we get political drama out of the way.....money will flow back in markets !!!!!
SO..it is important to IGNORE NOISE which comes consistently from the GENIUS of Prechter,Rosenberg,Adami,Kass..who have been WRONG for almost all of 662 points run.....
I still recommend overweight in markets until we have violated key support area like 50 DMA...then we will reassess......
Good luck with your diversified approach, some sectors are overbought like Oil, Gold ,Silver while others like Tech, Ag, Solar are oversold......
BLOG does NOT give buy or sell.
Saleem
6 comments:
I've been following the blog for at least a year and finally got everything signed up to comment :).
I am managing an IRA and restricted to cash transactions with the 3-day waiting period for funds after selling. Not suprisingly, this has helped me become a better investor as my moves must be well thought out and have a longer term focus.
I stepped into RVBD today at 32.38 first thing this morning. I've been out of FFIV since ~115ish and been waiting for an opportunity to get back into that or RVBD.
I remain 100% invested, but it would not surprise me to see a move toward the 1300 level if oil prices continue higher. Hopefully my energy/energy alternative stocks can perform well in that scenario to offset any tech/industrial weakness.
Good luck everyone! :)
Hi Stocktrader - 1996,
Thanks for sharing your thoughts about your take of S&P 500 direction.
I am happy that you have been a regular visitor of my BLOG.
Purpose of this BLOG is to share my take on everything which MAY / DOES affect stock market.
Being diversified is better than highly concentrated.....
I have a tendency to have MAX 7 stocks generally 5 stocks..which helps me in closely monitoring my portfolio.
Stock market is tough @ most times as sectors changes direction in nano-second.
Good luck with managing IRA.....
We all are trying to be better in trading !!!!!
Saleem
S
Did you sell BIDU??
I am holding for now
Hi C,
NO...I am holding BIDU.
Saleem
S
Some say Facebook in launching in China through BIDU?
I am expecting a nice green day--POT may close green
APPLE continues down ward to $285, IMHO.--Last support
Good luck to all
My oils and nat gas are red!
Hi C,
YES..BIDU & Facebook are launching a "social networking site in China"
A huge bullish news for BIDU $$$$
Saleem
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