Nasdaq has led the charge in last 18 trading days with a gain of 408.79 points or a gain of 8.92%...
Nasdaq RSI @ 67.59 and CMF @ 0.429 is a sign of money chasing Nasdaq stocks......
The above gains requires some digestive phase which may involve another week.....
Digestive phase is important for the health of the market.
This does not entail any radical move by anyone in terms of portfolio adjustment, just an awareness that bull TAPE needs a rest to regroup.
Jobs report may also put pressure as we may not come up with 235K which is expected.....
Latest economic data has not been robust in US, severe winter has taken a toll in economic activity.
China is cutting interest rates effective Sunday to boost economic activity and to prevent deflationary effects.
Chinese decision may give boost to Oil,Gold & commodities which is badly needed.
While indices may pull back slightly, it may be an important time to buy the weakness and add strong stocks while it is marking time.
This bull TAPE has the hall mark of a continued sustained move after resting during each run......
Some laggards may get a chance to outperform in this digestive phase, this is known as rotation.
Pay attention to contrary plays, which means, some stocks are doing better than market.
This TAPE requires patience & conviction as stocks wait their turn to make a move north.
Nasdaq will be going to a series of new highs after some rest.........
Good luck with your home work as time may be on your side, so no rush to make big decision quickly.
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hey Saleem,
Bought SPLK @ 66.30.
I will have weekly recap stats later, ran out of time to post with outlook.
Stocktrader
Hey Saleem,
A pullback week for the portfolio (as you expected!) as it lost 1.21% versus a -0.27% for the S&P 500 and small gain for the Russell 2000. Big losers included AAL (-6.1%), Z (-3.7% from purchase), BAC (-3.1% trade intraweek). Nothing I had was up more than 1%.
I did a big portfolio flush this week selling those stocks below moving averages. I feel like we are in an environment where the strong will get stronger. I have 40.6% cash now and am looking to deploy (first move was buying SPLK earlier today).
I want to be more invested but am being selective. It seems like the Eurozone has the best economic momentum right now, and am probably looking to get exposure there. PANW reports Monday after the bell and I expect a huge number. However, this could mark the top for a while, so I'll be selling on a blowout number and reaction.
Stocktrader
Hi Stocktrader,
Your portfolio rested after super gains for several week.
Good luck with PANW ER & SPLK...
Saleem
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