Market has been strong until it hit RSI 70 area......
Market needs few days of rest to catch its breadth.....
200 DMA is support for all indices...
This rest is needed to mount a challenge to all time high in all indices....
Following are max support point for indices upto 200 DMA :
S&P 500 -73.13
Dow -85.66
Nasdaq -118.06
Pullbacks are needed and is considered healthy in an uptrend....
Many stocks are ready to move UP as their earnings report are released....
For me FIT on Monday and FB on Wednesday....hoping they are positive and reaction is strong post earning.....
For every bad earning report, there has been many strong ones, it is OK to take earning risk in this environment, IF it is better than expected, jump is anywhere from 10% to 15%......should make up for any bad ones.....
When you are exposed to Wall Street , risk is always there, that is part of the game, you cannot be safe on Wall Street, risk & reward we do not control......
Market has been surprisingly good and may continue after mini rest.
RSI in high 50's are OK in a strong market.....
Currently RSI in Indices as as follows :
Nasdaq 64.38
S&P 500 64.54
Dow 66.25
Dow is the strongest, but Nasdaq can catch up in a hurry......
When TAPE is as strong as past several weeks, it is prudent to stay with maximum exposure, market may correct a bit , but your portfolio may move higher, IF you have stocks which are outperforming.
In conclusion, there are times, when you have to be optimistic, these are such times.
BLOG does NOT give buy or sell.
Saleem
9 comments:
Hi Saleem,
Sold half LBIO @ 6.40 on CSO resignation.
Stocktrader
Hi Saleem,
Sold the rest of LBIO @ 6.207
With data upcoming, I don't really have an edge here and don't want to be potentially exposed to a -30% kind of problem. There are so many other opportunities right now that I don't need LBIO until a clearer trend is established.
Stocktrader
Hi Saleem,
Ugh, missed DATA by $0.08, had an order for $83.53 this morning. I'll see if another chance on the name presents itself. I think it may run up into earnings this week.
Stocktrader
Hi Saleem,
...and I see my wife's fingerprints plague me again. I don't know if you got a chance to read my last comment Friday afternoon (before your Friday post), but she has been checking her email on my computer recently and leaving her account active.
Stocktrader
Hi Stocktrader,
I saw your Thursday post now.
I noticed 2 post and thought maybe your email got hacked.
Good luck with your next pick.
Saleem
Hi Saleem,
Trimmed some GM @ 35.32
With Ford's new big incentives through the end of the year, I don't want to suddenly be too exposed to a shift in auto sector investing if people believe a war price is starting.
Stocktrader
Hi Stocktrader,
Good to re-evaluate changing dynamics in sector.
Saleem
Hi Saleem,
I really think FIT will put up a huge number with better margins than last quarter. I am too scared to play it, but I think you have a winner!
Stocktrader
Hi Stocktrader,
Earnings are tough..but i like to play my hunch, i think FIT should be positive reaction AH....
Saleem
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