In last 7 trading days we have lost 47.68 points or 2.25% in S&P 500. This is not a normal pullback which generally takes us down 6% area......
Dow & S&P 500 is sitting barely above 50 DMA as shown below :
Dow close 17,856.76...50 DMA @ 17,806.83....49.93 points from breach
S&P 500 close 2071.26...50 DMA @ 2062.08....9.18 points from breach
IF we break 50 DMA then RSI in S&P 500 which is @ 45.66 could go to 40 in a hurry, major correction in last 5 months have taken RSI down to 30 or below twice......we may have solid support there......
SO there is no urgency to do anything except wait this correction out which could be as much as 6% from current 2.25%.....
Ensure your comfort level is very high....
Bulls are very high @ 58.7% which is saying too much optimism still, so a negative picture....
US$ had a major breakout and closed @ 97.72 an 11 year high..not good for oil, gold and commodities
TLT bond has slumped from 138+ to 123.50 on Friday, a huge slump of 14.50 points or 10.51% negative move...
All of the above is a change from previous trend which is ensuring higher interest rates already happening in 10 year treasury rate to 2.2467% which is a jump from 1.6677% only on January 30th 2015, a jump of .5790 basis point or a 34.72% move in interest rate.....this may cause disruption in housing, mortgages, borrowing.....
Gold is down from $1388.50 to 1164.30 in last 52 weeks, a drop of $224.20 or down 16.15%....not what i was positioned for, thus my exit from EGO on Friday when Gold slumped $37.10 from high to close.
US stock market needs to digest all these pressure with corrective action.....
This gives a chance to everyone to evaluate portfolio and be comfortable with your selection.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hey Saleem,
After actually doing my weekly numbers, there was much more underlying weakness than I thought. My huge NXPI gain really skewed my perception as the week went on. I'll post the details and outlook when I get a chance later this morning.
Stocktrader
Hey Saleem,
TASR is looking interesting here after a large post-earnings pullback (as expected), but with calls for body cameras likely to only intensify after the latest events.
Stocktrader
Hey Saleem,
Swapped Z @ 112.442 for TASR @ 22.118.
Z was just the most questionable of my bunch and TASR looks like it has bottomed with positive fundamental tailwinds ahead.
Stocktrader
Hi Stocktrader,
Good luck with TASR......
Saleem
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