TAPE has been in selling pressure, thanks to Greece and interest rate direction.
Market hates uncertainty....
Dow and S&P 500 are below 50 DMA
CMF is negative in Dow & S&P 500
BUT...Nasdaq is 63 points above 50 DMA
Nasdaq has positive CMF
It seems that Nasdaq is breaking away from doom & gloom .....
SOX is behaving strong
Jobs picture has improved in USA, but is no where near a breakaway level, thus interest rates may not go too far IF @ all.....
a .25% hike in interest rate is not going to change market direction in long term...
Short term, we are in a seasonally weak period, which is affecting industrial stocks
An overweight in technology stocks may overcome short term indecision...
This has been a stock pickers market..
Let the winner run, as they may go to multi-year new highs...
Security stocks are another area of strength, which must be in every portfolio.....
Low oil and gasoline should spur buying in retail sector...
Financials do well in rising interest rate environment
SO..it is a good time to review portfolio and critically examine its composition, make changes IF necessary.......
Good luck in coming week !
BLOG does NOT give buy or sell.
Saleem
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