While the whole world is on a equity binge, there are trouble lurking underneath in US market.
SOX is the biggest issue in Nasdaq
While Nasdaq has mustered a closing high for all times, it is still below its intraday all time high of 5,132.52 on March 10th, 2000
SOX is 6.12% lower from its all time high ?
Financials are lower by 3.04%
Homebuilders are lower by 3.38%
Dow all time high is 18,288.63, it closed @ 18,080.14....
SO if you think Sox, Financials, Homebuilders..it is pointing to trouble in market......
This is extremely troubling while Nasdaq and S&P 500 is closing @ all time highs but other sectors are lagging badly.....
I personally believe that internals of this market is giving a "clear signal" that this all time high is driven "mechanically by those supercomputers"
Internal of this market should be minimum 3 to 1 near all time highs but it is struggling even in Nasdaq on Friday, when it was negative on UP volume and negative in Advancing stocks.....an extremely bad divergence?
Internals of the market are giving a clear warning that something has to give......
Nasdaq @ all time highest close and SOX is NOT.........
SO..what to do ?
Make sure you are booking any gains IF you have...
Also do not make any rash bet or over-exposure
Be ready to trim your exposure
And look for an opportunity to benefit from "slide in May syndrome"
MAY is almost here and needs to be taken "very seriously"
Selling now may not be a bad idea...
Waiting till September is a good strategy.....
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hi Saleem,
It was a good week with the portfolio up 1.71% vs the +1.75% S&P and +1.25% Russell 2000. This comes after a flat week the prior week vs ~1% losses for the indices. Big winners were AAL (+9.9% upon sale), SPLK (+8.8%), and YELP (+4.8% upon sale). The only big loser was GM (-4.4% from purchase).
I remain mostly invested having 10.1% cash. I am trying to stay diversified among sectors and trying to pick the best of each group. The current portfolio is as follows: SPLK FB C GM URI TWTR EMN ETN CF AA (AEMDD).
I look forward to some earnings reports this week including TWTR and EMN in the portfolio, and AAPL, YELP, and LNKD on the close watch list.
Overall, the technicals of the S&P 500 breakout look great, but some aspects of the Russell 2000 "breakout" do not. Fears of that eventual rate hike may be weighing.
I think the Fed will make hints about pausing still this week which should couple with the end of month strength to make a nice week.
Hope all is well! :)
Stocktrader
Hi Saleem,
Sold TWTR @ 51.7834 ahead of earnings.
Stocktrader
Hi Stocktrader,
Good move with TWTR..earnings are Tuesday after close.
Saleem
Post a Comment