Last 3 trading days......

Last 3 trading days saw some downward move on renewed talk of rate hike, here is how all indices behaved :

Dow down .75%

Nasdaq down 1.28%

S&P 500 down 1.47%

Russell down 2.18%

It is interesting to see how indices behaved on two major negative news, Fed rate hike talk and Oil correction.

Also on friday, a much played news of a pundit predicting 10% correction sometimes in next few months, For the record stock market generally corrects twice in a year which ranges from 6% to 10%...so no news there.....

GDP of US was revised upward to 1.4% from 1% growth, this is a very good news for the bulls.

Oil remains the epi centre for stock movement, as US$ is getting a boost from rate hike talk, we may see continued pressure in oil & gold.

By end of the day oil & gold have an improving pattern, which helps indices in closing near high of the day.

Based on the TAPE action so far, it is a clear cut strong bull market, which has legs.

It is important to see that "trend is your friend"

It is important to note that oil is trading around $39.46 after so called correction, not a bad picture.

Gold is @ $1221.60, high being $1287.80 and low is $1046.50

VIX @ 14.74, high being 53.20 and low of 10.88, still room for a lower move which is good for equities.

All in all, we had a mini rest period in TAPE and we may start moving up again.

A well diversified approach with a focus on stronger stocks should do well going forward.

Good luck with your take of market and your own comfort level.

BLOG does NOT give buy or sell.

Saleem