It is a challenging market.....

Since May, this market has lost momentum. Reasons given are many which includes slowdown in US,China,India.Some are saying it is Europe, where many countries are facing financial challenges.

Because of the above many commodities are down, copper & silver are most prominent.

Oil is being pushed down by 28 countries led by US in its draw down from its strategic reserves. 60 million barrels are being slated for this. This has resulted in Oil being @ lower level in a while.

IF we look @ all of the above challenges, market was trying to adjust to many things. So market started its discounting process since May.

Currently, we are trying to form a bottom.All indices are still above 200 DMA...which is quite surprising & resilient based on many challenges.

Message of the market is, that most of the problems are going to be resolved.

Trading range has been established which is between 50 DMA & 200 DMA.

RSI in indices are ranging from 38.97 to 41.95.....Dow being the weakest & Nasdaq being strong.

Many stocks are are also trading @ various RSI levels as listed below :

AAPL 45.36
ATML 42.21
CNQ 37.97
SOL 35.09
SVM 39.83
TZOO 45.09
LULU 66.27
GG 43.02
WYNN 39.87
MPEL 59.27
BIDU 51.59
SINA 42.38
MOS 43.00
JKS 52.74

As this list is highlighting, that different stocks in same industry are acting better already.

This market is attractive for long term accumulation or short term trading. It all depends on your OWN comfort level.

SO, do not be discouraged by down days. There is plenty of good stocks to buy @ lower prices.

Good luck in your OWN picks.

BLOG does NOT give buy or sell.

Saleem