Sunday, August 9, 2015

Is selloff in Dow overdone ?

Dow has been down 7 days in a row or down 12 days in last 14 trading days......

Dow is @ lowest point in many many months since February of this year....

Dow is below 50 & 200 DMA

Dow is the only index which has negative CMF

This is a classic picture of all the bad news being priced in......

Dow is getting very close to deeply oversold levels, RSI currently @ 35.47.....IF it hits below 30, look for a sharp rally, even 32 RSI is a set up for UP UP & away .....

Markets are going through digestive format for uptick in interest rates, i personally believe, we have reached lows already, we may test those lows and it should be a successful test....

S&P 500 and Nasdaq are below 50 DMA , S&P 500 went below 200 DMA, but closed above.

It is a fair conclusion, that many players are extremely cautious.....

It is also a fair conclusion that many players are on vacation, thus an absence of buying interest.

There is a buying vacuum which is bringing market to near term lows....

It is a prime time to complete your buying.......

Buying is good when prices are challenged....

I am of the opinion, that we are "deeply oversold" and one must not fight for the last cent advantage in buying....

When interest go up .25 % or even 1/8%, it may become "buy the news"

Stay in the market with your high comfort stocks.....

After every slump, there is a rally waiting to happen.....

BLOG does NOT give buy or sell.

Saleem


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