Here we are @ the end of another week & quad-witching. The close today was very constructive as S&P 500 & Dow made some progress & closed green.
Nasdaq is still showing sign of weakness & staying below 200 DMA which is @ 2640.88...Nasdaq is only 25 points below 200 DMA...which is one day UP move.....
RSI is trending higher in S&P 500 & Dow, which is a positive sign.
It seems that Dow & S&P 500 MAY provide strength to pull Nasdaq into health.
Nasdaq stocks have taken bigger tumble than Dow & S&P 500 stocks.
Dow is healthiest and has claimed 12004.36 @ close.
S&P 500 is sitting @ 1271.50 which is also above 200 DMA.....
This has been a tough 8 weeks in market, but it has also created good opportunities to position in this weak market.
Some stocks have behaved surprisingly better than others as evidenced by RSI as listed below.
I am putting a small list to look for investing / trading ideas in a diversified manner. You can create another master list & pick from there.Here is name of some stocks with their RSI @ close :
AAPL 33.88
CNQ 34.71
LULU 55.54
SOL 25.31
TZOO 33.98
BIDU 37.78
AMZN 44.38
CMG 40.46
RVBD 34.17
WYNN 32.66
NFLX 41.77
It is hard to believe that RSI has come down so much in many stocks.
It is PRUDENT to buy quality stocks when they are out of favour. Oversold conditions do not last forever.
Exposure CAN be less when one is not sure, but to be completely out of market is not a right approach.
Greece has taken centre stage because of its many ramifications to European banks. This weekend, hopefully there will be an agreement & market MAY show its appreciation.
Summer is not a strong period for markets, but there are serious opportunity in many stocks.
Good luck in your OWN analysis of events & comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Saleem,
Thanks for the latest analysis. I took a beating lately even though I stayed out most of MAY. I am in negative territory for the year. Hopefully market will build a base and go up from here. We have been down for almost 8 weeks. However, the market has not been down for more than 10% yet. I am fully invested in the market now. I am in BIDU, CNQ, TZOO, UYM, LULU, and FCX. I sold most of my underdogs and took a lost.
Thanks and have a nice weekend.
Michael
Hi Michael,
We are all facing loss for the year.
When markets are down for 8 straight week..it is impossible to make money.
BUT..we may start trending UP which will bring confidence to traders/investors.
Markets are in a narrow trading range which is the current range.
When market are trending down..i sell very quickly & keep only those where my comfort level is high.
Hopefully we will recover quickly also.
Saleem
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