Sunday, April 10, 2016

Technical picture of market......

Here is an in-depth analysis of market :

RSI :

S&P 500 @ 56.39

Nasdaq        57.28

Dow            58.31

How far from all time high :

S&P 500 4.08%

Dow        4.22%

Nasdaq   7.29%

From Golden cross :

Dow...closest

S&P 500 2nd closest

Nasdaq Farthest

Moving averages :

S&P 500 above 50 & 200 DMA

Dow above 50 & 200 DMA

Nasdaq above 50 but below 200 DMA

CMF :

S&P 500 0.256

Dow        0.239

Nasdaq   0.185

It is extremely important to do these type of analysis to understand current market trend.

It is very obvious from above stat that S&P 500 is the strongest followed by Dow, Nasdaq is showing relative weakness.

It is safe to conclude that Nasdaq may lag other averages going forward, Nasdaq earning picture may not be as strong as previous quarter, thus more pressure on Nasdaq.

Many traders are extremely Nasdaq centric, which needs to change to benefit from other sectors which has made tremendous moves, Oil, Gold Base metals to name a few.

There seems to be a shift away from retail stocks.

This is an extremely volatile market, which needs to be understood to capitalize on volatility.

This is also a very good stock picker market but with quick focus on booking profits, this may not be a buy & hold TAPE.

IBD is cautious as they are saying "uptrend under pressure"

SO...tread this TAPE with utmost caution and daytrader mentality or maximum swing trading with 1 week window.

Good luck with your own strategy and comfort level.

BLOG does NOT give buy or sell.

Saleem



7 comments:

stocktrader_1996 said...

Hi Saleem,

I really like your analysis of the indices against each other. It might be more important than the total market picture right now--picking the right kinds of stocks going forward.

That said, I am afraid how the increasingly strong yen, very weak US Q1 GDP forecast, and falling world interest rates are playing out together right now. I am mostly in cash based on these fears, but am ready to buy on a pullback.

Stocktrader

Stocks100 said...


Hi Stocktrader,

Thanks for your feedback.

YES...all those things are impacting earnings picture.

Comfort level needs to be very high @ this stage in market.

Good luck with your strategy.

Saleem

stocktrader_1996 said...

Hi Saleem,

Sold GM @ 29.50

The chart is troublesome and there are serious concerns about a topping auto market. I'll try to get back in at a better price.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Added 40% NTES @ $ 143.25

Saleem

stocktrader_1996 said...

Hi Saleem,

Good luck with more NTES!

The weak dollar is continually helping our market instead of potentially hurting as carry trades are unwind. I was right about the JPY strength, but wrong about the market's reaction to that (even if there was a small decline last week). I guess it's time to pay attention to that dynamic.

Stocktrader

Stocks100 said...

Hi Stocktrader,

Sold CNQ @ $28.35

Saleem

Stocks100 said...

Hi Stocktrader,

Good luck with your picks.

Saleem