After a brutal week, what next ?

Last week many issues troubled traders & TAPE lost its momentum & having trouble finding its footing.

There has been no movement in any conflict, so called captured Israeli soldier which prompted bombing to the stone age & tough talk / warning from White House, now is presumed dead in battle. Truth is the biggest casualty in any aggression.

Wall Street is facing many reason to stay in a neutral mode BUT RSI is giving me hope that worst is over, here is the RSI picture of all major indices / index :

Dow       30.06

Russell    33.24

S&P 500 34.29

SOX       37.26

Nasdaq  42.15

Whenever RSI is in 30 area it is considered "deeply oversold"...which is a good area to enter for a swing trade.

There is no all clear yet as most international conflicts are still brewing or simmering and may explode all over again, which in turn will impact stock market worldwide.

SO any gains must be booked & swing trading needs to be adopted until October, when sanity may return to world issues.

Russell 2000 RUT has been hit the hardest & SOX is showing sign of life where opportunities exists.

S&P 500 lost 3.77% in this slump.

US$ is strong....

Oil @ $97.42...$89.09 is 52 wk low & high is $106.64...energy stocks has been among the-best performer....

Gold is in its seasonal strength & may show life in this environment.

SO....we may have seen the lows in many indices / index and selective trading is highly encouraged. Quick money is made after every major sell off.

Please keep in mind what has performed well lately & has already reported good numbers, those are the stocks to be in....some names are FB, TWTR, INTC...to name a few.

Good luck with your strategy.

BLOG does NOT give buy or sell.

Saleem