Technicians are sounding alarms to the health of this market.
Many technicians are predicting spike in VIX & slump in indices, reason given that S&P 500 failed to make a new all time highs & Dow is way off its highs.
They are also pointing out to resistance to round numbers like 50 & 100 digits in indices....not a proven technical resistance, its just another digit on its way to higher number.
What they are conveniently ignoring that Nasdaq made a new 14 yr high in this rally & S&P 500 came within 3 points in making new all time highs.
I do not see that we are ready to slump because RSI is @ a reasonable 57.86, rallies do not falter from these levels.
SOX is near highs which is a good omen for technology stocks.
VIX @ 14.86 is also not near lows to warrant spiking UP.
I am of the opinion that we may make new highs in S&P 500 easily.......which is only 15 points away from close.
Gold, Silver, biotechs, technology stocks are showing renewed strength which is a good sign for overall health of this market.
Janet Yellen is set to testify on Thursday & may give more reason to rally......we may close on a strong note in coming week.
My conclusion is, stay involved in this TAPE as it is set for higher highs. A diversified approach may work better. Any weakness is a buying opportunity.
Good luck with your own analysis of this TAPE & strategy.
BLOG does NOT give buy or sell.
Saleem
4 comments:
gold stocks will start mild correction from march ... this week will be good to take profit
Hi Djovanny,
We all have to follow our own take on sectors ......
Gold first resistance is $1360 area & then $1425......
I want to wait for $1425.....then profit taking for me.
Saleem
Hey guys,
My biggest concern with gold and gold stocks comes when the weather effects abate. If the economic data suddenly shows nice strength based on back to regularity and potentially some pent up demand, gold could be hit with a double problem of a stronger dollar and a poor alternative to stocks.
Stocktrader
Hi Stocktrader,
That is why i have identified resistance level in Gold.....i do not expect gold to go above $1425 in 2014.....
Saleem
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