S&P 500 is only 2 points away from making golden cross, a reliable technical indicator of future strength, Dow has already made it, Nasdaq is 111 points away from golden cross.
Nasdaq earnings so far is weak, this week many important techs are reporting Monday NXPI, Tuesday TWTR AAPL CMG, Wednesday FB, Thursday AMZN, BIDU......IF i have to handicap only few will beat or guide up......
Fed meeting is also this week and Wednesday @ 2 PM will make a statement about direction of interest rates, expecting no change.
Important part is that this market only punishes stocks which gives weak earnings and they too start recovering very soon, a sign of strong bull market,
This TAPE is very healthy and strong, it is important to keep the focus on stocks which are working and let it run.
RSI around 70 gives minor pushback and then we resume uptrend until we hit 70 again, currently RSI are @ these numbers :
Nasdaq @ 56.40
S&P 500 @ 63.23
Dow @ 65.63
RUT @ 66.79
Strongest index is Russell which is a major change, weakest index is Nasdaq and may remain so.
VIX @ 13.22 is a mini challenge as its trading range is 53.29 to 10.88......when we get in 11 area, TAPE may pull back in a hurry, something to keep an eye on.
Gold, Oil, base metals are working and need to be in trading focus, they were down for several years and now has come back to life, much more to go on the upside.
Chemicals are working also, check the chart of HUN...looks very impressive.
Are Fertilizer stocks next to come out of ICU?
Stocks in many new sectors need to be in focus be it steels, copper or chemicals.....
Good luck with your stock picks, this is a very good rotation TAPE.
BLOG does NOT give buy or sell.
Saleem
No comments:
Post a Comment